Baron Funds, an asset management firm, published its “Baron Small Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 1.32% was delivered by the fund’s institutional shares for the third quarter of 2021. For the first nine months of the year, the Fund is up 10.65%. The Fund soundly beat the performance of the Russell 2000 Growth Index (the “Index”) in the quarter, which was down 5.65%, and for the year, with the Index up just 2.82%. The S&P 500 was up 0.58% for the quarter and is up 15.92% for the year, as large-cap stocks have outpaced small caps this year. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Baron Small Cap Fund, in its Q3 2021 investor letter, mentioned ASGN Incorporated (NYSE: ASGN) and discussed its stance on the firm. ASGN Incorporated is a Glen Allen, Virginia-based commercial company with a $6.6 billion market capitalization. ASGN delivered a 52.65% return since the beginning of the year, while its 12-month returns are up by 51.89%. The stock closed at $127.51 per share on December 09, 2021.
Here is what Baron Small Cap Fund has to say about ASGN Incorporated in its Q3 2021 investor letter:
“Shares of ASGN Incorporated, a leading provider of skilled workers to the IT and digital/creative industries for staffing and consulting work, rose as the company reported strong results for the quarter. Revenues grew 17% and earnings gained 24%, driven by a healthy rebound in the depressed staffing business and a robust 62% organic growth rate in its burgeoning consulting segment. Guidance is for continued strong growth, which we think should greatly surpass industry rates. ASGN closed on the sale of its Oxford division in the third quarter, a strategic decision we like very much, as it will focus the company on higher-growth end-markets and services. After the sale, the company is well capitalized, and management is indicating that it will pursue acquisitions in its consulting and government services segments. We think they have been masterful acquirors in the past. ASGN stock is appreciating not just on the back of strong results but is being re-rated. The company is no longer a cyclical, low-multiple business, but now a strong secular grower, with market-leading capabilities and relationships, serving great end-markets.”
Based on our calculations, ASGN Incorporated (NYSE: ASGN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ASGN was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. ASGN Incorporated (NYSE: ASGN) delivered a 13.29% return in the past 3 months.
During the first quarter of this year, we also shared Baron Fund’s views on ASGN in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
