Here’s Why Baron Funds Decided to Dispose its Everbridge (EVBG) Shares

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned Everbridge, Inc. (NASDAQ: EVBG) and discussed its stance on the firm. Everbridge, Inc. is a Burlington, Massachusetts-based software company with a $1.9 billion market capitalization. EVBG delivered a -25.03% return since the beginning of the year, while its 12-month returns are down by -64.35%. The stock closed at $51.85 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about Everbridge, Inc. in its Q4 2021 investor letter:

“Everbridge, Inc. provides a cloud SaaS solution for critical event management, mass notification, population, and IT alert and enterprise safety applications that automate and accelerate an organization’s operational response. Shares of Everbridge declined in the fourth quarter after the company announced the resignation of its CEO and guided for a slowdown in organic growth. We decided to sell our position as a result of this development. We exited our position in Everbridge, Inc. following the company’s lowering of out-year growth expectations and the change in senior management.”

Photo by Danial Igdery on Unsplash

Our calculations show that Everbridge, Inc. (NASDAQ: EVBG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. EVBG was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 26 funds in the previous quarter. Everbridge, Inc. (NASDAQ: EVBG) delivered a -67.47% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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