Baron Funds, an investment management firm, released its “Baron Global Advantage Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 14.8% (institutional shares) in the fourth quarter compared to an 11.0% gain for the MSCI ACWI Index (the Index) and a 12.7% gain for the MSCI ACWI Growth Index, the Fund’s benchmarks. The fund appreciated 25.6% for the full year compared to 22.2% and 33.2% for the benchmarks, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Baron Global Advantage Fund featured stocks like Fiverr International Ltd. (NYSE:FVRR) in its Q4 2023 investor letter. Headquartered in Tel Aviv, Israel, Fiverr International Ltd. (NYSE:FVRR) is an online marketplace. On March 4, 2024, Fiverr International Ltd. (NYSE:FVRR) stock closed at $22.81 per share. One-month return of Fiverr International Ltd. (NYSE:FVRR) was -17.11%, and its shares lost 41.83% of their value over the last 52 weeks. Fiverr International Ltd. (NYSE:FVRR) has a market capitalization of $895.954 million.
Baron Global Advantage Fund stated the following regarding Fiverr International Ltd. (NYSE:FVRR) in its fourth quarter 2023 investor letter:
“Fiverr International Ltd. (NYSE:FVRR) is the leading two-sided online freelance marketplace, offering a platform that connects businesses with freelancers across a variety of functions, from web design to digital marketing, computer programming, and inventory management. The stock has been weak due to a complex macro environment driving small businesses, who represent the majority of Fiverr’s buyers, to cut down on freelancing spending. This recent trend was exacerbated by investor fears that Generative AI (GenAI) would disrupt various freelancing jobs. While we agree that some freelancing functions are more exposed to artificial intelligence (AI) disruption than others (logo design for example), we believe Fiverr’s diverse platform as well as new incremental demand from AI-related work, would minimize the potential negative impact from GenAI. In our view, macro conditions are behind the recent deceleration in the company’s revenue growth. However, the fact that growth decelerated at the same time as GenAI adoption began gaining steam, created a bearish narrative for the stock. In our view, Fiverr’s current stock price overly discounts that risk and offers an extremely attractive risk-reward equation for long-term investors. Over 20% of the company’s market cap is in net cash, the stock is trading at approximately an 8% free-cash-flow yield, and management continues to make rapid progress on margin expansion; EBITDA margins are expanding from 7.2% in 2022 to 16.3% in 2023 based on the company’s mid-point guidance.”
A freelancer typing at a laptop, coffee in hand, at an outdoor cafe with a view of the city skyline.
Fiverr International Ltd. (NYSE:FVRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Fiverr International Ltd. (NYSE:FVRR) was held by 23 hedge fund portfolios, up from 17 in the previous quarter, according to our database.
We discussed Fiverr International Ltd. (NYSE:FVRR) in another article and shared the list of stocks that will double in 2024. In addition, please check out our hedge fund investor letters Q4 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.
