Baron Funds, an investment management company, released its “Baron Durable Advantage Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 5.0% (Institutional Shares) compared to a 4.9% decline for the S&P 500 Index. Holdings in Health Care, Industrials, and Consumer Staples contributed to the fund’s relative performance in the quarter, whereas holdings in Financials, Consumer Discretionary, and Information Technology detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like HEICO Corporation (NYSE:HEI) in the third quarter 2022 investor letter. Headquartered in Hollywood, Florida, HEICO Corporation (NYSE:HEI) is an aerospace, defense, and electronic-related product and service manufacturer. On November 15, 2022, HEICO Corporation (NYSE:HEI) stock closed at $159.39 per share. One-month return of HEICO Corporation (NYSE:HEI) was 7.00% and its shares gained 9.00% of their value over the last 52 weeks. HEICO Corporation (NYSE:HEI) has a market capitalization of $18.928 billion.
Baron Funds made the following comment about HEICO Corporation (NYSE:HEI) in its Q3 2022 investor letter:
“HEICO Corporation (NYSE:HEI) is an aerospace, defense, and electronics company, offering alternative aerospace aftermarket parts as well as sub-system components for aerospace & defense. Shares increased 9% in the third quarter on the announcement of HEICO’s largest acquisition to date: Exxelia, a French electronic component maker, for €453 million. HEICO has proven its ability to execute on acquisitions at a high level, complementing its solid organic growth with accretive deals over the years, and we believe this to be no exception. In addition, HEICO reported strong earnings results with revenue growth of 21% year-over-year and EBITDA growth of 23%, driven by the recovery in commercial aerospace. We remain shareholders, as we have confidence in HEICO’s ability to compound cash flow over time driven by its ability to gain market share in the commercial aftermarket industry while the company’s innovative and entrepreneurial culture, highly engineered, vertically integrated manufacturing, and market leadership creates strong and durable moats and keeps competitors largely at bay.”
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HEICO Corporation (NYSE:HEI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held HEICO Corporation (NYSE:HEI) at the end of the second quarter, which was 39 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 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.
