Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Baron Discovery Fund, in its Q4 2021 investor letter, mentioned Enfusion, Inc. (NYSE: ENFN) and discussed its stance on the firm. Enfusion, Inc. is a Chicago, Illinois-based software company with a $943.7 million market capitalization. ENFN delivered a -35.53% return since the beginning of the year and it closed at $14.39 per share on January 20, 2022.
Here is what Baron Discovery Fund has to say about Enfusion, Inc. in its Q4 2021 investor letter:
“We participated in the Enfusion, Inc. IPO during the quarter. Enfusion provides cloud-based investment management software that integrates the front, middle, and back-office in one unified data set. Enfusion’s product offerings include order management, execution management, portfolio management, general ledger accounting, valuation/risk, reconciliations, and portfolio monitoring. Enfusion operates in a large market (tens of thousands of investment managers globally) and has achieved high levels of client satisfaction as evidenced by a low single-digit voluntary customer churn rate. Relative to the largely legacy competition, Enfusion offers a complete end-to-end solution delivered in a cloud-based multi-tenant manner. Many investment managers are burdened by legacy technology systems created via fragmented solutions. Enfusion was designed to work seamlessly across the end-to-end workflow needs of an investment manager with everyone on a common data set. Enfusion also innovates faster than the competition and offers a lower total cost of ownership. Enfusion is well positioned to achieve 30%-plus revenue growth for multiple years driven by a combination of growth within existing clients, winning new hedge funds, deeper penetration into new client types (including mutual funds and private equity), and international expansion. The company has an attractive margin profile (high 20% to low 30% currently increasing to at least the mid-30s adjusted EBITDA margins over time) and a 98% recurring revenue business model. We believe that Enfusion will be a strong earnings compounder, which should drive solid returns for the stock over a multi-year period.”
Our calculations show that Enfusion, Inc. (NYSE: ENFN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Enfusion, Inc. (NYSE: ENFN) delivered a -37.53% return in the past 3 months.
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.