Here’s Why Baron Funds Sold its Warby Parker (WRBY) Stake

Baron Funds, an asset management firm, published its “Baron Focused Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Focused Growth Fund (the “Fund”) declined 8.03% (Institutional Shares) in the quarter ended March 31, 2022. The Fund’s primary benchmark, the Russell 2500 Growth Index (the “Index”), fell 12.30% in the period. The S&P 500 Index, which measures the performance of large-cap companies, fell 4.60%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Focused Growth Fund mentioned Warby Parker Inc. (NYSE:WRBY) and explained its insights for the company. Founded in 2010, Warby Parker Inc. (NYSE:WRBY) is a United States-based online retail company with a $1.6 billion market capitalization. Warby Parker Inc. (NYSE:WRBY) delivered a -47.65% return since the beginning of the year, while its 12-month returns are down by -69.85%. The stock closed at $14.04 per share on June 15, 2022.

Here is what Baron Focused Growth Fund has to say about Warby Parker Inc. (NYSE:WRBY) in its Q1 2022 investor letter:

“Warby Parker Inc. (NYSE:WRBY) is an omnichannel retailer that sells eyewear, contact lenses, eye exams, and accessories. Sales typically peak between Christmas and New Year’s Day as consumers rush to spend leftover money in their Flexible Spending Accounts. Shares fell during the quarter, as the spike in Omicron resulted in lower foot traffic and store closures during the company’s peak sales season. We exited our position.”

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Our calculations show that Warby Parker Inc. (NYSE:WRBY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Warby Parker Inc. (NYSE:WRBY) was in 18 hedge fund portfolios at the end of the first quarter of 2022, compared to 15 funds in the previous quarter. Warby Parker Inc. (NYSE:WRBY) delivered a -14.44% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Warby Parker Inc. (NYSE:WRBY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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