Baron Funds, an asset management firm, published its “Baron FinTech Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.65% was delivered by the fund’s institutional shares for the third quarter of 2021, compared to the S&P 500 Index, which appreciated 0.58%, and the FactSet Global FinTech Index which rose 3.72% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about t
Baron FinTech Fund, in its Q3 2021 investor letter, mentioned Toast, Inc. (NYSE: TOST) and discussed its stance on the firm. Toast, Inc. is a Boston, Massachusetts-based cloud-based restaurant software company with a $17.8 billion market capitalization. TOST delivered a -23.62% for the past five days and it closed at $35.69 per share on December 02, 2021.
Here is what Baron FinTech Fund has to say about Toast, Inc. in its Q3 2021 investor letter:
“We also participated in the IPO of Toast, Inc., a provider of technology and payment services for the restaurant industry. The company’s core offering is a point-of-sale hardware and software solution with integrated payment processing. Customers can add other features across operations including digital ordering and delivery, marketing and loyalty, team management, and back office. Toast powers 48,000 restaurant locations across 29,000 customers, most of which are small operators with under 10 locations. Toastis the clear leader in the technology market for small restaurants with the best product offering and the only end-to-end platform. Customers love the product and recommend it to their friends in the industry, driving strong inbound and referral business. Toast differentiates itself from the competition through its large field-based sales team that is deeply embedded in local communities, helping retain and upsell existing customers and onboard new customers.
We believe that as restaurants invest more in technology, Toast will be a prime beneficiary given its leading market position and best-in-class product. With an under 6% share of the 860,000 restaurant locations in the U.S. and a 3% share of a $15 billion addressable market, we believe Toast has a long runway for growth by adding customer locations and cross-selling additional products. Only 54% of Toast locations use four or more of Toast’s 10-plus products, each of which provide significant customer value and are additive to revenue. Toast stays close to its customers and continues to add innovative new features. Over time, we expect Toast will migrate up-market to increasingly serve the enterprise segment of the restaurant industry (customers with over 50 locations) and will enter new countries (22 million locations outside the U.S.), further expanding the addressable market and growth opportunity.”
Photo by Phillip Goldsberry on Unsplash
Based on our calculations, Toast, Inc. (NYSE: TOST) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TOST was in 38 hedge fund portfolios at the end of the third quarter of 2021, compared to 0 funds in the previous quarter. Toast, Inc. (NYSE: TOST) delivered a -44.20% return in the past month.
Disclosure: None. This article is originally published at Insider Monkey.
