Baron Funds, an investment management company, released its “Baron Focused Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund increased by 2.18% (Institutional Shares), compared to a 0.12% decline for the Russell 2500 Growth Index and a 4.88% decline for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like PENN Entertainment, Inc. (NASDAQ:PENN) in the Q3 2022 investor letter. Headquartered in Wyomissing, Pennsylvania, PENN Entertainment, Inc. (NASDAQ:PENN) is an entertainment and gaming company. On November 2, 2022, PENN Entertainment, Inc. (NASDAQ:PENN) stock closed at $32.83 per share. One-month return of PENN Entertainment, Inc. (NASDAQ:PENN) was 2.92% and its shares lost 42.80% of their value over the last 52 weeks. PENN Entertainment, Inc. (NASDAQ:PENN) has a market capitalization of $5.206 billion.
Baron Funds made the following comment about PENN Entertainment, Inc. (NASDAQ:PENN) in its Q3 2022 investor letter:
“Shares of gaming company PENN Entertainment, Inc. (NASDAQ:PENN) declined 9.6% in the quarter and penalized performance by 10 bps. This was due to investor concerns that a potential recession would result in a slowdown or decline in its earnings growth rate. However, thus far, the company has seen no material change to visitation or spending levels, and its earnings remain strong. PENN is generating strong cash flow, which it continues to use to invest in its digital growth opportunity, while using excess cash to buy back its stock. PENN is well positioned to weather a slowdown or recession, and we believe that even if one does occur, the company would still generate revenue and EBITDA above pre-pandemic levels. We consider the $50 million of losses this year from its digital business to be modest in relation to PENN’s over $1 billion of EBITDA from its casino business. The losses from its digital business represent customer acquisition costs incurred as additional states legalize online gambling. Since it is far less expensive to retain existing customers than to acquire new ones, we expect marketing costs to decline as PENN builds its customer base. PENN’s core bricks and mortar casino business remains strong, and the company’s healthy regional casino business and strong balance sheet enable it to absorb its digital losses.”
PENN Entertainment, Inc. (NASDAQ:PENN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held PENN Entertainment, Inc. (NASDAQ:PENN) at the end of the second quarter which was 36 in the previous quarter.
We discussed PENN Entertainment, Inc. (NASDAQ:PENN) in another article and shared the best gaming stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
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In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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