Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 6.49% (Institutional Shares) up in the second quarter and 16.54% up for the first half of the year. This quarter, the Fund underperformed the broader S&P 500 Index, as larger stocks beat smaller ones while, year-to-date the fund’s performance is comparable to the S&P 500 Index. The fund performed similarly to the Russell 2000 Growth Index (the Benchmark) during the quarter, and year-to-date the fund returned nearly 300 points ahead of the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Small Cap Fund highlighted stocks like SiteOne Landscape Supply, Inc. (NYSE:SITE) in the second quarter 2023 investor letter. Headquartered in Roswell, Georgia, SiteOne Landscape Supply, Inc. (NYSE:SITE) is a wholesale distributor of landscape supplies. On August 30, 2023, SiteOne Landscape Supply, Inc. (NYSE:SITE) stock closed at $167.95 per share. One-month return of SiteOne Landscape Supply, Inc. (NYSE:SITE) was 4.49%, and its shares gained 36.26% of their value over the last 52 weeks. SiteOne Landscape Supply, Inc. (NYSE:SITE) has a market capitalization of $7.568 billion.
Baron Small Cap Fund made the following comment about SiteOne Landscape Supply, Inc. (NYSE:SITE) in its second quarter 2023 investor letter:
“SiteOne Landscape Supply, Inc. (NYSE:SITE) is the largest distributor of wholesale landscape supplies in North America, selling irrigation, hardscape, agronomic, and nursery products to professional contractors through its network of branches for residential and commercial maintenance, upgrade/ repair, and new construction applications. Shares rose during the quarter after the company reported positive early season order trends. Shares were also boosted by the continued broader recovery in sentiment for housing related stocks. We believe SiteOne will take share of the fragmented wholesale landscape supplies distribution industry leveraging its scale, operational efficiency, and technology, while strategically acquiring companies that expand its product offering and geographic footprint, which together will drive consistent EBITDA growth. Though we expect cash flow to be lower this year, we are modeling that it will double over the next five years, and the company will generate significant free cash flow to fund acquisitions while deleveraging its balance sheet.”
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SiteOne Landscape Supply, Inc. (NYSE:SITE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SiteOne Landscape Supply, Inc. (NYSE:SITE) at the end of second quarter which was 18 in the previous quarter.
We discussed SiteOne Landscape Supply, Inc. (NYSE:SITE) in another article and shared Conestoga Small Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
