Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund appreciated 5.34% in the first quarter, trailing the Russell Midcap Growth Index, which returned 9.14%. Stock selection drove the fund to underperform in the quarter. IT, Communication Services, and Consumer Discretionary were the strongest performing sectors, while Energy and Financials were the principal laggards. Furthermore, defensive-oriented sectors, Health Care, Utilities, and Consumer Staples also struggled in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund highlighted stocks like SBA Communications Corporation (NASDAQ:SBAC) in the first quarter 2023 investor letter. SBA Communications Corporation (NASDAQ:SBAC) provides wireless communications infrastructures. On May 1, 2023, SBA Communications Corporation (NASDAQ:SBAC) stock closed at $261.04 per share. One-month return of SBA Communications Corporation (NASDAQ:SBAC) was 1.67%, and its shares lost 25.18% of their value over the last 52 weeks. SBA Communications Corporation (NASDAQ:SBAC) has a market capitalization of $28.276 billion.
Baron Asset Fund made the following comment about SBA Communications Corporation (NASDAQ:SBAC) in its Q1 2023 investor letter:
“As was the case this quarter, the stocks that initially perform best in response to an anticipated reduction or moderation in interest rates tend to be those with a disproportionate amount of their earnings and cash flow expected far in the future. This is because those stocks stand to benefit the most from a reduction in the discount rate (driven by the prevailing level of interest rates) applied to their earnings streams. These include many stocks in the Information Technology (IT) sector, particularly certain software companies, and the Communication Services sector, which includes certain internet services companies.
We reduced our stake in long-time holding SBA Communications Corporation (NASDAQ:SBAC), which owns and operates cellular towers, on concerns that higher interest rates would increase its debt servicing costs.”
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SBA Communications Corporation (NASDAQ:SBAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held SBA Communications Corporation (NASDAQ:SBAC) at the end of the fourth quarter which was 40 in the previous quarter.
We discussed SBA Communications Corporation (NASDAQ:SBAC) in another article and shared the list of biggest real estate companies in USA. In addition, please check out our hedge fund investor letters Q1 2023 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.
