Here’s Why Baron Funds Disposed its Opendoor Technologies (OPEN) Shares

Baron Funds, an asset management firm, published its “Baron Opportunity Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. An increase of 3.16% was delivered by the fund’s institutional shares for the fourth quarter of 2021 but trailed the Russell 3000 Growth Index, which increased 10.89%, and the S&P 500 Index, which climbed 11.03%. For the full year 2021, the Fund gained 12.29% but underperformed the two indexes, which advanced 25.85% and 28.71%, respectively Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Opportunity Fund, in its Q4 2021 investor letter, mentioned Opendoor Technologies Inc. (NASDAQ:OPEN) and discussed its stance on the firm. Founded in 2014, Opendoor Technologies Inc. (NASDAQ:OPEN) is a San Francisco, California-based online platform with a $5.1 billion market capitalization, and is currently spearheaded by its CEO, Eric Wu. Opendoor Technologies Inc. (NASDAQ:OPEN) delivered a -43.26% return since the beginning of the year, while its 12-month returns are down by -69.89%. The stock closed at $8.29 per share on March 18, 2022.

Here is what Baron Opportunity Fund has to say about Opendoor Technologies Inc. (NASDAQ:OPEN) in its Q4 2021 investor letter:

“The Fund invests in secular growth and innovative businesses across all market capitalizations, with the bulk of the portfolio landing in the large-cap zone. The Fund is categorized as US Large Growth by Morningstar. As of the end of the fourth quarter, the largest market cap holding in the Fund was $2.5 trillion and the smallest was $791 million. The median market cap of the Fund was $27.5 billion.
The Fund had $1.7 billion of assets under management. The Fund had investments in 63 securities. The Fund’s top 10 positions accounted for 45.4% of net assets. Fund inflows were positive for 2021.We sold Opendoor Technologies Inc. because we identified issues relating to our long-term theses in the company, and we decided to exit the positions to fund other purchases.”

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Our calculations show that Opendoor Technologies Inc. (NASDAQ:OPEN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Opendoor Technologies Inc. (NASDAQ:OPEN) was in 41 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 35 funds in the previous quarter. Opendoor Technologies Inc. (NASDAQ:OPEN) delivered a -42.03% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on Opendoor Technologies Inc. (NASDAQ:OPEN) in another article. 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.