Is ZoomInfo (ZI) A Great Long-Term Investment?

Baron Funds, an asset management firm, published its “Baron Asset Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Against this backdrop, Baron Asset Fund (the “Fund”) gained 5.04% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) gained 2.85%, and the S&P 500 Index gained 11.03%. The Fund’s outperformance was attributable to favorable stock selection and tailwinds from certain style biases, notably its underexposure to the poor performing residual volatility and beta factors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Asset Fund, in its Q4 2021 investor letter, mentioned ZoomInfo Technologies Inc. (NASDAQ: ZI) and discussed its stance on the firm. ZoomInfo Technologies Inc. is a  Vancouver, Washington-based software as a service company with a $20.7 billion market capitalization. ZI delivered a -19.88% return since the beginning of the year, while its 12-month returns are up by 13.45%. The stock closed at $51.44 per share on January 17, 2022.

Here is what Baron Asset Fund has to say about ZoomInfo Technologies Inc. in its Q4 2021 investor letter:

“Strength in Communication Services came from marketing solutions provider ZoomInfo Technologies Inc., whose shares were up in response to well-received acquisitions and a positive earnings result.”

Our calculations show that ZoomInfo Technologies Inc. (NASDAQ: ZI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ZI was in 57 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. ZoomInfo Technologies Inc. (NASDAQ: ZI) delivered a -23.55% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on ZI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.