Here’s Why Baron Small Cap Fund Sold Hillman Solutions Corp. (HLMN)

Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 6.49% (Institutional Shares) up in the second quarter and 16.54% up for the first half of the year. This quarter, the Fund underperformed the broader S&P 500 Index, as larger stocks beat smaller ones while, year-to-date the fund’s performance is comparable to the S&P 500 Index. The fund performed similarly to the Russell 2000 Growth Index (the Benchmark) during the quarter, and year-to-date the fund returned nearly 300 points ahead of the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Small Cap Fund highlighted stocks like Hillman Solutions Corp. (NASDAQ:HLMN) in the second quarter 2023 investor letter. Headquartered in Cincinnati, Ohio, Hillman Solutions Corp. (NASDAQ:HLMN) is a hardware products provider. On August 30, 2023, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $9.12 per share. One-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was -6.46%, and its shares gained 11.56% of their value over the last 52 weeks. Hillman Solutions Corp. (NASDAQ:HLMN) has a market capitalization of $1.777 billion.

Baron Small Cap Fund made the following comment about Hillman Solutions Corp. (NASDAQ:HLMN) in its second quarter 2023 investor letter:

“We sold out of our small position in Hillman Solutions Corp. (NASDAQ:HLMN) as the leverage in the business remains high partly preventing a pathway to inorganic growth (a value driver in the past) to supplement a low organic growth profile. We believe other opportunities offer better upside and more dimension.”

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Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of second quarter which was 19 in the previous quarter.

We discussed Hillman Solutions Corp. (NASDAQ:HLMN) in another article and shared Bernzott Capital Advisors US Small Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.