Baron Funds, an investment management company, released its “Baron Opportunity Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 2.38% (Institutional Shares) compared to a 3.37% decline for the Russell 3000 Growth Index and a 4.88% decline for the S&P 500 Index. The fund fell sharply for the year-to-date and trailing 12-month periods; however, the philosophy of the fund is to achieve strong long-term performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like Shopify Inc. (NYSE:SHOP) in the Q3 2022 investor letter. Headquartered in Ottawa, Canada, Shopify Inc. (NYSE:SHOP) is an e-commerce platform. On October 31, 2022, Shopify Inc. (NYSE:SHOP) stock closed at $34.23 per share. One-month return of Shopify Inc. (NYSE:SHOP) was 8.56% and its shares lost 76.82% of their value over the last 52 weeks. Shopify Inc. (NYSE:SHOP) has a market capitalization of $43.544 billion.
Here is what Baron Funds specifically said about Shopify Inc. (NYSE:SHOP) in its Q3 2022 investor letter:
“During the third quarter, we added to the leading commerce platform, Shopify Inc. (NYSE:SHOP), after selling its stock during the prior quarter in order to take advantage of tax-loss harvesting, and after its shares had declined to what we believed were compelling levels for long-term investors. The stock price decline has been driven by near-term uncertainty regarding e-commerce growth in a normalized, post-COVID world, as well as the increased investments in fulfillment (through Shopify Fulfillment Network or SFN) and Amazon’s announcement of Buy with Prime, which enables third-party merchants to take advantage of Amazon’s fulfillment services to offer their consumers, who are also Prime members, two-day shipping. While SFN increases Shopify’s capital intensity, we believe that the company’s hub-and-spoke model will enable it to remain measured in the level of required spending and treat it as positive optionality when valuing the shares. Additionally, while some merchants might be attracted to Buy with Prime, our due diligence suggests that many would prefer to use SFN and maintain full control over customer relationships and data. Amazon and Shopify are both customer-focused, however Amazon’s customers are end consumers, while Shopify’s customers are the merchants. Unlike Amazon, which also competes with its merchants (through first-party sales), Shopify never competes with its merchant customers. Its software and services sit in the background, quietly supporting and helping merchants of all sizes to sell more online (and increasingly offline), aggregating the scale of the many merchants it has (over 2 million) to enable the benefits that only the largest merchants could get in the past. Over time, as it expands its platform horizontally to larger merchants and business-to-business sellers, and vertically, by solving more problems for its merchants, we believe Shopify will be able to address a larger portion of the market, while also increasing retention rates and expanding opportunities for monetization. With still less than 1% of global commerce volume (excluding China) running through its platform, we believe that Shopify has a long runway of growth.”
Shopify Inc. (NYSE:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Shopify Inc. (NYSE:SHOP) at the end of the second quarter which was 72 in the previous quarter.
We discussed Shopify Inc. (NYSE:SHOP) in another article and shared the best long-term growth stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.
What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
This prediction might not be bold at all:
A few years from now, you’ll wish you’d owned this stock.
The best part? You can discover everything about this company and its groundbreaking technology right now.
I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.
Trust me — you’ll want to read this report before putting another dollar into any tech stock.
For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
