Baron Funds, an investment management company, released its “Baron Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Baron Small Cap Fund had a strong fourth quarter and a full year in 2023, both on absolute and relative bases. The fund was up 12.64% (Institutional Shares) in the fourth quarter and appreciated 27.19% for the year. This was essentially in line with the performance of the Russell 2000 Growth Index (the Benchmark) in the fourth quarter, which was up 12.75% and outperformed the 11.69% returns of the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Small Cap Fund featured stocks like Installed Building Products, Inc. (NYSE:IBP) in the fourth quarter 2023 investor letter. Based in Columbus, Ohio, Installed Building Products, Inc. (NYSE:IBP) engages in installing insulation for the residential new construction market. On February 26, 2024, Installed Building Products, Inc. (NYSE:IBP) stock closed at $236.08 per share. One-month return of Installed Building Products, Inc. (NYSE:IBP) was 19.70%, and its shares gained 104.61% of their value over the last 52 weeks. Installed Building Products, Inc. (NYSE:IBP) has a market capitalization of $6.697 billion.
Baron Small Cap Fund stated the following regarding Installed Building Products, Inc. (NYSE:IBP) in its fourth quarter 2023 investor letter:
“Installed Building Products, Inc. (NYSE:IBP) is a leading distributor and installer of insulation and complementary building products for residential and commercial end markets in the U.S. Stock performance was helped by a pronounced decline in mortgage rates during the fourth quarter and expected continuation into 2024, which would make new residential home purchases, a key driver of IBP’s business, more affordable. Continued strong operating and financial results (record third quarter EBTIDA and EBITDA margins) also helped boost the share price. IBP is poised to benefit from outsized growth across U.S. residential construction, which remains below long-term historical averages.”
A construction worker installing a garage door in a new residential home.
Installed Building Products, Inc. (NYSE:IBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Installed Building Products, Inc. (NYSE:IBP) was held by 25 hedge fund portfolios, down from 29 in the previous quarter, according to our database.
We discussed Installed Building Products, Inc. (NYSE:IBP) in another article and shared Giverny Capital Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 countries with declining birth rates in 2024
- 13 Best Environmental Dividend Stocks To Invest In According To Analysts
- Michael Burry’s 2024 Portfolio: 12 New Stock Picks
Disclosure: None. This article is originally published at Insider Monkey.
