Is Snowflake (SNOW) a Smart Long-Term Investment?

Baron Funds, an asset management firm, published its “Baron Fifth Avenue Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Fifth Avenue Growth Fund (the “Fund”) lost 30.6% (Institutional Shares) during the second quarter, which compared to losses of 20.9% for the Russell 1000 Growth Index (“R1KG”) and 16.1% for the S&P 500 Index (“SPX”), the Fund’s benchmarks. Year-to-date, the Fund has lost 45.2% compared to losses of 28.1% and 20.0% for the Fund’s benchmarks, 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 Fifth Avenue Growth Fund mentioned Snowflake Inc. (NYSE:SNOW) and explained its insights for the company. Founded in 2012, Snowflake Inc. (NYSE:SNOW) is a Bozeman, Montana-based cloud computing–based data cloud company with a $59.8 billion market capitalization. Snowflake Inc. (NYSE:SNOW) delivered a -44.45% return since the beginning of the year, while its 12-month returns are down by -40.92%. The stock closed at $188.19 per share on September 09, 2022.

Here is what Baron Fifth Avenue Growth Fund has to say about Snowflake Inc. (NYSE:SNOW) in its Q2 2022 investor letter:

“During the quarter, we added to three of our cloud infrastructure positions – Snowflake Inc., Cloudflare, Inc., and Datadog, Inc.While investors are concerned that a weakening macroeconomic environment will be a near term headwind to growth as customers may slow down their cloud expansions, we remain focused on the long term – duration of growth, competitive advantages, and innovative capabilities and are happy to increase our positions at a more attractive price. For example, Snowflake, the leading data cloud provider, during its recent user conference, announced several new products, which significantly expand its addressable market…” (Click here to see the full text)

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Our calculations show that Snowflake Inc. (NYSE:SNOW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Snowflake Inc. (NYSE:SNOW) was in 65 hedge fund portfolios at the end of the second quarter of 2022, compared to 81 funds in the previous quarter. Snowflake Inc. (NYSE:SNOW) delivered a 53.72% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Snowflake Inc. (NYSE:SNOW) 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.