Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. Compared to the Russell 2000 Growth Index benchmark, which was slightly positive, the fund (institutional shares) was flat in the third quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the third-quarter letter, Baron Funds discussed stocks like SmartRent, Inc. (NYSE:SMRT). Headquartered in Scottsdale, Arizona, SmartRent, Inc. (NYSE:SMRT) is a software company. On October 28, 2022, SmartRent, Inc. (NYSE:SMRT) stock closed at $2.6900 per share. One-month return of SmartRent, Inc. (NYSE:SMRT) was 18.50% and its shares lost 79.51% of their value over the last 52 weeks. SmartRent, Inc. (NYSE:SMRT) has a market capitalization of $531.915 million.
Baron Funds made the following comment about SmartRent, Inc. (NYSE:SMRT) in its Q3 2022 investor letter:
“We acquired additional shares of SmartRent, Inc. (NYSE:SMRT) during the third quarter following a sharp correction after the company reported disappointing second quarter installations and revised full-year guidance. We were also able to take advantage of the additional liquidity provided when an early venture capital investor was selling their shares in the market. While we are cognizant of the broader macroeconomic backdrop and near-term execution challenges, SmartRent’s future business pipeline continues to grow and remains robust. The company has 450,000 units installed today with another nearly 800,000 in the pipeline with zero cancellations in its history to date. We are hopeful that the second half of 2022 will represent a bottom in terms of quarterly installation pace from which the company can ramp as hardware and chip supply becomes more freely available. Furthermore, customers are actually increasingly focused on deploying SmartRent’s solutions in an inflationary environment as they are eager to capitalize on labor and other cost savings enabled by the company’s platform (e.g. self-guided tours) as well as potential revenue opportunities. This was a common theme we heard from several companies at a recent global real estate conference that we attended. We are optimistic about the company’s ability to scale in 2023 and 2024 and grow its run-rate recurring SaaS software revenue by 3 times from 2022 levels during that time period.”
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SmartRent, Inc. (NYSE:SMRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held SmartRent, Inc. (NYSE:SMRT) at the end of the second quarter which was 17 in the previous quarter.
We discussed SmartRent, Inc. (NYSE:SMRT) in another article and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
