Baron Funds, an investment management company, released its “Baron FinTech Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 4.83% (Institutional Shares) compared to an 8.24% gain for the FactSet Global FinTech Index and a 7.50% gain for the S&P 500 benchmark index. Against a confusing market backdrop, the Fund appreciated during the first quarter yet trailed the Benchmark and the broader market. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron FinTech Fund highlighted stocks like Interactive Brokers Group, Inc. (NASDAQ:IBKR) in the Q1 2023 investor letter. Headquartered in Greenwich, Connecticut, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. On June 5, 2023, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $80.44 per share. One-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was 3.14%, and its shares gained 32.78% of their value over the last 52 weeks. Interactive Brokers Group, Inc. (NASDAQ:IBKR) has a market capitalization of $33.527 billion.
Baron FinTech Fund made the following comment about Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q1 2023 investor letter:
“We initiated a position in Interactive Brokers Group, Inc. (NASDAQ:IBKR), a leading brokerage firm that enables institutional and individual investors to trade securities, commodities, and foreign currencies from a single platform. Interactive Brokers targets sophisticated investors with complex needs, including those who trade multiple asset classes across global markets and use leverage to finance trades. The company differentiates itself through its low prices, the vast array of markets that it serves, and its strong growth from international markets. Interactive Brokers has 2.2 million accounts, a customer base that has more than quadrupled in the last five years and has more recently been growing over 20% per year.
We have long been admirers of the company’s founder and chairman, Thomas Peterffy. He founded the company that would become Interactive Brokers in 1977 when he bought a seat on the American Stock Exchange as an options market maker. With a background in computer engineering, Peterffy was the first to use computers to calculate options prices while others were still doing manual calculations. This automation allowed Peterffy to increase trading efficiency, and he ultimately built the world’s largest electronic options market-maker. In 1993, Interactive Brokers added brokerage capabilities, allowing clients to use the same infrastructure that the company had spent years building for its own trading. Interactive Brokers eventually sold the market-making business to focus exclusively on the more profitable brokerage business. Thomas remains the face of the company and owns 70% of the shares…” (Click here to read the full text)
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the fourth quarter, which was 42 in the previous quarter.
We discussed Interactive Brokers Group, Inc. (NASDAQ:IBKR) in another article and shared the list of most undervalued growth stocks to buy according to analysts. 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.
