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Fox Factory Holding Corp. (FOXF) Fell Following Earnings Update

Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. A general sense of optimism was prevalent in the market, driven by the conviction that the economy remained robust, inflation was moderating, and rate cuts were anticipated shortly. Baron Small Cap Fund had an outstanding first quarter and performed well ahead of the Russell 2000 Growth Index (the Benchmark). The fund returned 11.81% (Institutional Shares) in the quarter while the benchmark returned 7.58%.  One-third of the benchmark’s performance was driven by the anomalous performance of one stock, Super Micro Computer, Inc, which tripled in the quarter.  In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Small Cap Fund highlighted stocks like Fox Factory Holding Corp. (NASDAQ:FOXF), in the first quarter 2024 investor letter. Fox Factory Holding Corp. (NASDAQ:FOXF) designs, engineers, manufactures, and markets performance-defining products and systems. The one-month return of Fox Factory Holding Corp. (NASDAQ:FOXF) was 11.11%, and its shares lost 51.80% of their value over the last 52 weeks. On May 24, 2024, Fox Factory Holding Corp. (NASDAQ:FOXF) stock closed at $44.69 per share with a market capitalization of $1.86 billion

Baron Small Cap Fund stated the following regarding Fox Factory Holding Corp. (NASDAQ:FOXF) in its first quarter 2024 investor letter:

“Shares of Fox Factory Holding Corp. (NASDAQ:FOXF), a leading provider of suspension systems and engineered products for the mountain bike, power sport, and off-road truck categories, declined during the quarter following an earnings update that indicated uncertain volumes in its bike and aftermarket truck segments. The company’s challenges are mostly attributable to temporary issues, such as vehicle production delays associated with the 2023 United Auto Workers strike, which is now resolved. We believe Fox Factory is protecting its brand positioning and leading innovation within its categories. As near-term demand headwinds dissipate, Fox Factory should return to strong growth rates in the large automotive aftermarket.”

A cyclist in full gear on their mountain bike, the Performance Cycling Components visible.

Fox Factory Holding Corp.’s (NASDAQ:FOXF) recent earnings call confirmed that it delivered $333.5 million in first-quarter revenue, a 16.60% year-over-year decrease. Fox Factory Holding Corp. (NASDAQ:FOXF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Fox Factory Holding Corp. (NASDAQ:FOXF) at the end of the first quarter which was 22 in the previous quarter.

In another article, we discussed Fox Factory Holding Corp. (NASDAQ:FOXF) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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This little-known company could skyrocket as oil giants and big car makers bet big on green hydrogen

Low cost, emissions-free, potentially eternally-flowing accumulations of Natural Hydrogen gas in the earth’s subsurface are set to turbo-charge the hydrogen economy and the energy transition. Billionaires like Bill Gates and Jeff Bezos are betting big on this.

An entirely new energy boom is brewing, one that isn’t getting nearly enough discussion.

Hydrogen (H₂), thanks to its unique properties, is expected to become the future of efficient energy. One kilogram of hydrogen contains a vast amount of energy, making it an extremely efficient and lightweight energy carrier.

The applications for hydrogen are enormous and will increasingly impact many sectors of our economy from steel manufacturing to heavy-duty vehicles, to air, rail and maritime transport, defense, agriculture, electricity, petroleum refinement, semi-conductors, glass production, and to energy storage…the list goes on!

In the U.S., a program was created by 2021’s Bipartisan Infrastructure Law that will direct $7 billion toward “clean hydrogen hubs” – complexes of hydrogen production, transport, storage, and end users.

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