Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Indie Semiconductor Inc. (NASDAQ:INDI) is one of them. Indie Semiconductor Inc. (NASDAQ:INDI) develops and markets automotive semiconductors and software platforms for LiDAR. In the last three months, Indie Semiconductor Inc. (NASDAQ:INDI) stock lost 3%. Here is what the fund said:
“Indie Semiconductor, Inc. is a fabless designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems, including LiDAR and connected car, user experience, and electrification applications. We participated in its recent SPAC transaction and have purchased additional shares in the aftermarket. We believe the automotive semiconductor space is an attractive industry vertical as new vehicle designs are long-lived and design wins provide strong revenue visibility. Additionally, semiconductor content in cars is expected to grow substantially in the coming decade, driven by enhanced safety and user experience features, as well as electrification. While a relatively small company today, Indie already has multiple contracts with various automobile manufacturers and Tier 1 automotive suppliers that ramp in the coming years, with a total $2 billion strategic backlog of contracted business and a $2.5 billion pipeline of opportunities for which the R&D has largely been funded. With the cash received from the SPAC transaction, we are confident that Indie will accelerate its R&D efforts and continue to win new designs across an increasing number of applications, leading to strong growth over the coming decade. Indie’s key advantage is its cross-domain expertise spanning analog, processing, and power semiconductor applications, enabling it to offer higher levels of integration and design simplicity at a lower cost to customers. These advantages are reflected in 90% of their design wins being sole sourced. Moreover, Indie’s experienced management team has previously built a semiconductor company from the ground up, achieving a successful exit, giving us high confidence in their ability to execute their strategic plan at Indie as well.”
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Our calculations showed that Indie Semiconductor Inc. (NASDAQ:INDI) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.