Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’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 SoFi Technologies Inc. (NASDAQ:SOFI) is one of them. SoFi Technologies Inc. (NASDAQ:SOFI) is an online personal finance company. In the last three months, SoFi Technologies Inc. (NASDAQ:SOFI) stock lost 37%. Here is what the fund said:
“We participated in SPAC offering of SoFi Technologies, Inc., a branchless digital bank that provides a range of financial services products for the “high earners not well served” demographic. SoFi was initially focused on student loan refinancing, but it has vastly expanded its product portfolio, adding other types of loans and a range of banking products, such as a bank account, debit and credit cards, and brokerage (including crypto). We believe that SoFi now has the broadest product suite of any “neobank” in the U.S., and we view the lending segment, SoFi’s historical strength, as a differentiated product line that few neobank competitors currently offer. With most neobanks focusing on the larger group of unbanked or underbanked Americans, SoFi’s focus on a higher-income demographic, coupled with its wide range of products, positions it to be one of the leading digital banks of the future. The breadth of its product portfolio means that, unlike its neobank competitors, SoFi can offer potential customers a product at many points in their lifecycle such as student loan refinancing for new graduates, or brokerage when those graduates accumulate savings. This enables SoFi to sign up and retain customers for a long period of time. Aside from member growth, SoFi plans to grow through cross-selling products into its customer base, which drives both customer engagement and stickiness. In addition to the consumer finance offerings, SoFi owns a technology platform called Galileo that is used to power the banking experiences of many other neobanks. We believe the Galileo asset gives SoFi attractive exposure to the fast-growing broader consumer FinTech space. Over time, we expect SoFi to continue signing up members and then cross-selling those members multiple products, which should drive improving unit economics and profit growth.”
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Earlier this month, we published an article revealing that SoFi Technologies Inc. (NASDAQ:SOFI) was one of the 10 Reddit WallStreetBets stocks that are rising.
Our calculations showed that SoFi Technologies Inc. (NASDAQ:SOFI) 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.
