Baron Funds, an investment management company, released its “Baron Opportunity Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the broader market and increased by 17.96% (Institutional Shares) compared to a 13.85% return for the Russell 3000 Growth Index and a 7.50% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Opportunity Fund highlighted stocks like indie Semiconductor, Inc. (NASDAQ:INDI) in the first quarter 2023 investor letter. Headquartered in Aliso Viejo, California, indie Semiconductor, Inc. (NASDAQ:INDI) is an automotive semiconductors and software solutions provider. On May 9, 2023, indie Semiconductor, Inc. (NASDAQ:INDI) stock closed at $7.88 per share. One-month return of indie Semiconductor, Inc. (NASDAQ:INDI) was -11.26%, and its shares gained 47.84% of their value over the last 52 weeks. Indie Semiconductor, Inc. (NASDAQ:INDI) has a market capitalization of $1.124 billion.
Baron Opportunity Fund made the following comment about indie Semiconductor, Inc. (NASDAQ:INDI) in its Q1 2023 investor letter:
“indie Semiconductor, Inc. (NASDAQ:INDI) is a designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems (ADAS) as well as connected car, user experience, and electrification applications. Shares rose during the quarter after the company announced the acquisition of GEO Semiconductor and met or exceeded revenue and gross margin guidance for the seventh straight quarter since coming public. After raising capital in late 2022 to fund acquisition activity – we increased our position size when the stock traded down on this convertible bond deal – early this year indie announced its buyout of GEO Semiconductor for up to $270 million (including potential earnouts), to round out its ADAS sensor portfolio with a leader in camera processing technology. We find GEO Semiconductor to be a synergistic acquisition that accelerates indie’s growth and margin trajectory. The automotive semiconductor vertical remains attractive. We believe indie will continue to deliver on its targeted model of profitability in the second half of 2023, achieving 60% gross margins and 30% operating margins by 2025. We also project indie continues to rapidly increase revenue, as it fulfills its $4.2 billion, and growing, strategic backlog.”
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indie Semiconductor, Inc. (NASDAQ:INDI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held indie Semiconductor, Inc. (NASDAQ:INDI) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed indie Semiconductor, Inc. (NASDAQ:INDI) in another article and shared the list of best semiconductor equipment stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
