Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund’s performance was flat compared to the Russell 2000 Growth Index in the fourth quarter. The fund (institutional shares) returned 0.22% compared to the benchmark return of 4.13%. The fund (institutional shares) fell by 35.12% for the full year compared to a 26.36% decline for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Discovery Fund highlighted stocks like ForgeRock, Inc. (NYSE:FORG) in the Q4 2022 investor letter. Headquartered in San Francisco, California, ForgeRock, Inc. (NYSE:FORG) is a digital identity platform operator. On February 24, 2023, ForgeRock, Inc. (NYSE:FORG) stock closed at $20.43 per share. One-month return of ForgeRock, Inc. (NYSE:FORG) was 2.97%, and its shares gained 37.95% of their value over the last 52 weeks. ForgeRock, Inc. (NYSE:FORG) has a market capitalization of $1.753 billion.
Baron Discovery Fund made the following comment about ForgeRock, Inc. (NYSE:FORG) in its Q4 2022 investor letter:
“ForgeRock, Inc. (NYSE:FORG) offers identity and access management security software that enterprises use to authenticate their customers and employees. Following a drop in software valuations this year, private equity and strategic buyers have been active in the small-cap cybersecurity space due to the sector’s secular growth and its relative demand resilience compared to other IT budget items in economic downturns. On October 11, 2022, private equity firm Thoma Bravo announced a definitive agreement to acquire ForgeRock for $23.25 per share in a transaction valued at $2.3 billion. The acquisition represented a 53% premium to ForgeRock’s last share price prior to the announcement, driving outperformance for the quarter. We estimate the acquisition value represented 7.5 times ForgeRock’s forecasted revenue for 2023. This deal followed Thoma Bravo’s purchases of our two former identity security portfolio companies Ping Identity and SailPoint. We believe the identity security category remains a high priority spending category and expect further consolidation to take place in the industry.”
Photo by mahdis mousavi on Unsplash
ForgeRock, Inc. (NYSE:FORG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held ForgeRock, Inc. (NYSE:FORG) at the end of the fourth quarter which was 9 in the previous quarter.
We discussed ForgeRock, Inc. (NYSE:FORG) in another article and shared the list of best performing cybersecurity stocks in 2022. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
