Should You Hold ZoomInfo Technologies (ZI)?

Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund appreciated 5.34% in the first quarter, trailing the Russell Midcap Growth Index, which returned 9.14%. Stock selection drove the fund to underperform in the quarter. IT, Communication Services, and Consumer Discretionary were the strongest performing sectors, while Energy and Financials were the principal laggards. Furthermore, defensive-oriented sectors, Health Care, Utilities, and Consumer Staples also struggled in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Asset Fund highlighted stocks like ZoomInfo Technologies Inc. (NASDAQ:ZI) in the first quarter 2023 investor letter. Headquartered in Vancouver, Washington, ZoomInfo Technologies Inc. (NASDAQ:ZI) provides sales and marketing solutions. On May 1, 2023, ZoomInfo Technologies Inc. (NASDAQ:ZI) stock closed at $21.70 per share. One-month return of ZoomInfo Technologies Inc. (NASDAQ:ZI) was -9.70%, and its shares lost 58.26% of their value over the last 52 weeks. ZoomInfo Technologies Inc. (NASDAQ:ZI) has a market capitalization of $11.225 billion.

Baron Asset Fund made the following comment about ZoomInfo Technologies Inc. (NASDAQ:ZI) in its Q1 2023 investor letter:

“Within Communication Services, lower exposure to this top performing sector coupled with the underperformance of marketing solutions provider ZoomInfo Technologies Inc. (NASDAQ:ZI) hampered relative results. ZoomInfo’s shares declined as the broader software and technology spending environment, to which the company is disproportionately exposed, continued to weaken. We are closely monitoring its customers’ spending patterns.”

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ZoomInfo Technologies Inc. (NASDAQ:ZI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held ZoomInfo Technologies Inc. (NASDAQ:ZI) at the end of the fourth quarter which was 50 in the previous quarter.

We discussed ZoomInfo Technologies Inc. (NASDAQ:ZI) in another article and shared the list of growth stocks that hedge funds are dumping. 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.