Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund’s performance was flat compared to the Russell 2000 Growth Index in the fourth quarter. The fund (institutional shares) returned 0.22% compared to the benchmark return of 4.13%. The fund (institutional shares) fell by 35.12% for the full year compared to a 26.36% decline for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Discovery Fund highlighted stocks like Smartsheet Inc. (NYSE:SMAR) in the Q4 2022 investor letter. Headquartered in Bellevue, Washington, Smartsheet Inc. (NYSE:SMAR) is a cloud-based platform provider. On February 24, 2023, Smartsheet Inc. (NYSE:SMAR) stock closed at $43.07 per share. One-month return of Smartsheet Inc. (NYSE:SMAR) was 3.09%, and its shares lost 19.00% of their value over the last 52 weeks. Smartsheet Inc. (NYSE:SMAR) has a market capitalization of $5.656 billion.
Baron Discovery Fund made the following comment about Smartsheet Inc. (NYSE:SMAR) in its Q4 2022 investor letter:
“We added to our position in Smartsheet Inc. (NYSE:SMAR), a cloud-based collaboration and work management software platform that customers use to plan, visualize, manage, and automate business projects. Smartsheet reported a strong quarter, where revenue grew 38% and operating profit came in ahead of expectations. Growth was driven by strong new user additions (total users grew 23% year-over-year to 11.7 million), good cross-selling of premium add-on products (which grew 70% year-over-year and now account for over $200 million in annual recurring revenue), and continued license expansion at large customers (Smartsheet now has 40 enterprise customers spending more than $1 million each annually). Management remains focused on growing profitably–they expect Smartsheet to be free-cash-flow positive for the year in 2022 and to expand margins further in 2023. Longer term, we maintain conviction in Smartsheet due to its differentiated project management solutions, its long runway for license growth, and new product penetration at existing large customers, as well as its improving unit economics.”
Smartsheet Inc. (NYSE:SMAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Smartsheet Inc. (NYSE:SMAR) at the end of the fourth quarter which was 49 in the previous quarter.
We discussed Smartsheet Inc. (NYSE:SMAR) in another article and shared the list of stocks that recently received revised price targets from analysts after their recent earnings. In addition, please check out our hedge fund investor letters Q4 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.
