Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. Baron Discovery Fund (the Fund) reached its 10-year anniversary on September 30, 2023. Since inception, on a cumulative basis, the fund was up 195.3% (Institutional Shares) compared to the Russell 2000 Growth Index’s 91.6% return. During the quarter, the fund returned -5.36% (Institutional Shares) compared to -7.32% return for the benchmark. The bond market became the latest headwind to stock market performance 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 Navitas Semiconductor Corporation (NASDAQ:NVTS) in the third quarter 2023 investor letter. Headquartered in Torrance, California, Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets ultra-efficient gallium nitride (GaN) semiconductors. On November 10, 2023, Navitas Semiconductor Corporation (NASDAQ:NVTS) stock closed at $6.26 per share. One-month return of Navitas Semiconductor Corporation (NASDAQ:NVTS) was 6.28%, and its shares gained 28.02% of their value over the last 52 weeks. Navitas Semiconductor Corporation (NASDAQ:NVTS) has a market capitalization of $1.117 billion.
Baron Discovery Fund made the following comment about Navitas Semiconductor Corporation (NASDAQ:NVTS) in its Q3 2023 investor letter:
“Navitas Semiconductor Corporation (NASDAQ:NVTS) is a leader in gallium nitride (GaN) power semiconductors and a smaller player in silicon carbide (SiC) power semiconductors. These are both new materials used as a base (substrate) on which to print power-oriented chip circuits. Shares fell during the quarter as the stock was trading at a premium valuation heading into the quarter, and investors were broadly concerned about underlying demand conditions in key end-markets like smartphones. Despite near-term concerns, the company reiterated its outlook to double revenues in 2023, reported strong design win momentum, and indicated opportunity pipeline growth. Navitas sells monolithically integrated GaN power integrated circuit chips (completed printed circuit systems on a chip), which provide greater reliability and performance compared to competitors that supply discrete power devices (multiple individual, larger components put together on a chip). It recently purchased a silicon control company to drive integration and performance even further, and its SiC products offer high performance across many different applications. The company’s high-power GaN product launches remain on track for data center, solar, and electric vehicle applications. We expect Navitas to gain share in the rapidly growing GaN and SiC power semiconductor markets over time, driven by its superior technology.”
A biomedical researcher in a laboratory examining an integrated fluidic circuit.
Navitas Semiconductor Corporation (NASDAQ:NVTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Navitas Semiconductor Corporation (NASDAQ:NVTS) at the end of second quarter which was 14 in the previous quarter.
We discussed Navitas Semiconductor Corporation (NASDAQ:NVTS) in another article and shared Baron Discovery Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
