Here’s Why You Should Remain Hopeful in Definitive Healthcare (DH)

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned Definitive Healthcare Corp. (NASDAQ: DH) and discussed its stance on the firm. Definitive Healthcare Corp. is a Framingham, Massachusetts-based commercial company with a $1.9 billion market capitalization. DH delivered a -29.75% return since the beginning of the year and it closed at $19.58 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about Definitive Healthcare Corp. in its Q4 2021 investor letter:

“Health Care underperformed nearly across the board, largely due to the effect of the resurgence of COVID in the form of the Delta and Omicron variants on health system availability and utilization, which really hurt our medical device companies. There were some one-off cases as well, like Definitive Healthcare Corp. (investors took profits after a big post-IPO run in the third quarter). Critically, we believe that the fundamental investment theses for our companies remain strong, and that many of the negative headwinds we experienced in the fourth quarter (and that we have continued to see early in the first quarter of 2022) should abate, particularly in Health Care. This means that we believe that we have substantial embedded upside in the medium and long term for these sectors which comprise about half of the portfolio.”

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Our calculations show that Definitive Healthcare Corp. (NASDAQ: DH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DH was in 23 hedge fund portfolios at the end of the third quarter of 2021. Definitive Healthcare Corp. (NASDAQ: DH) delivered a -50.86% return in the past 3 months.

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.