Is it a Smart Decision to Sell Your SmartRent (SMRT) Position?

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Small Cap Fund (the “Fund”) was down 18.60% (Institutional Shares) in the second quarter. The Fund modestly outperformed the Russell 2000 Growth Index, which was down 19.25% for the period, but lagged the S&P 500 Index, which was down 16.10%. Year-to-date, the Fund is down 31.36%, which trailed the Russell 2000 Growth Index and the S&P 500 Index, which were down 29.45% and 19.96%, respectively. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Small Cap Fund mentioned SmartRent, Inc. (NASDAQ:SMRT) and explained its insights for the company. Founded in 2017, SmartRent, Inc. (NASDAQ:SMRT) is a Scottsdale, Arizona-based smart home automation company with a $577.3 billion market capitalization. SmartRent, Inc. (NASDAQ:SMRT) delivered a -68.08% return since the beginning of the year, while its 12-month returns are down by -75.16%. The stock closed at $2.92 per share on September 12, 2022.

Here is what Baron Small Cap Fund has to say about SmartRent, Inc. (NASDAQ:SMRT) in its Q2 2022 investor letter:

“Some of our holdings might have had some demand pull forward during COVID, or their growth might slow with the economy, but just on the margin. Reduced biotechnology funding is a near-term headwind. SmartRent, Inc. has struggled with sourcing product and supply-chain snafus, and as a result its path to profitability has been pushed out.”

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Our calculations show that SmartRent, Inc. (NASDAQ:SMRT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SmartRent, Inc. (NASDAQ:SMRT) was in 9 hedge fund portfolios at the end of the second quarter of 2022, compared to 17 funds in the previous quarter. SmartRent, Inc. (NASDAQ:SMRT) delivered a -36.42% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on SmartRent, Inc. (NASDAQ:SMRT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.