Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 11.20% in the first quarter compared to the Russell 2000 Growth Index’s return of 6.07%. The strong performance of holdings in the Information Technology (IT), Industrials, and Consumer Discretionary sectors and the Fund’s higher exposure to the top-performing IT sector led the fund to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Montrose Environmental Group, Inc. (NYSE:MEG) in the first quarter 2023 investor letter. Headquartered in North Little Rock, Arkansas, Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. On May 15, 2023, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $36.54 per share. One-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 19.49%, and its shares lost 11.76% of their value over the last 52 weeks. Montrose Environmental Group, Inc. (NYSE:MEG) has a market capitalization of $1.092 billion.
Baron Discovery Fund made the following comment about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q1 2023 investor letter:
“Shares of Montrose Environmental Group, Inc. (NYSE:MEG), a leading environmental services company, fell after the company gave 2023 guidance that missed Street estimates. Sources of the weak guidance included difficult year-over-year comps, increased research and development investment due to an abundance of new business opportunities, and slowed 2022 acquisitions flow. We view these issues as temporary and think the magnitude of the correction was due largely to poor management communication as opposed to company fundamentals. We took advantage of price weakness to add to our position. We remain confident in Montrose’s competitive advantage and believe its growth drivers are poised to accelerate, driven by increased regulations for methane emissions monitoring and tightening standards for PFAS (also known as “forever plastics”) contamination in water. We also think that acquisitions, a key growth driver for Montrose, are poised to accelerate into 2023 as the company resumes its normal deal cadence.”
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Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the fourth quarter which was 8 in the previous quarter.
We discussed Montrose Environmental Group, Inc. (NYSE:MEG) in another article and shared the list of best waste management stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.
