Baron Discovery Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Discovery Fund returned 6.07% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 2000 Growth Index was up 3.92%. You should check out Baron Discovery Fund’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 Ping Identity Holding Corp. (NYSE:PING) is one of them. Ping Identity Holding Corp. (NYSE:PING) is a software company. In the last three months, Ping Identity Holding Corp. (NYSE:PING) stock gained 12%. Here is what the fund said:
“Ping Identity Corporation is a software company that provides secure user identification, mainly for large enterprises. We initially invested in Ping on its IPO in the third quarter of 2019. Ping’s products address employee access as well as customer access. Examples of Ping’s products include multi-factor identification (which might use mobile text verification or a biometric identifier like a fingerprint to add to a password protected identity), and single sign-on (SSO, which allows employees of a firm to log into multiple applications simultaneously). Ping secures over 2 billion identities globally. It is a well-run company with highly visible growth prospects, a strong balance sheet, and real free cash flow. Ping also trades at a reasonable valuation multiple, far below that of its closest competitors. In our opinion, this is because it has been growing slower than its rivals (low to mid-teens revenue growth versus 40% plus at the competitors). But with new products (recognized by leading consulting firms as industry leading) and a better focus on marketing, we surmise that growth will accelerate meaningfully. There is also a significant margin-expansion opportunity. If the expected growth and margin expansion occur, Ping’s share price should substantially increase.”
[Shutterstock: 380107090, scyther5]
In July, we published an article revealing that Ping Identity Holding Corp. (NYSE:PING) was one of the 15 best security stocks to buy now.
In Q3 2020, the number of bullish hedge fund positions on Ping Identity Holding Corp. (NYSE:PING) stock decreased by about 27% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in PING’s growth potential. Our calculations showed that Ping Identity Holding Corp. (NYSE:PING) 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.
