Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 9.44% up in the first quarter outperforming the Russell 2000 Growth Index and the S&P 500 Index which returned 6.07% and 7.50% respectively. During the quarter, the fund benefitted from positive stock selection in almost all sectors on a relative basis. 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 first quarter 2023 investor letter. Headquartered in Roswell, Georgia, SiteOne Landscape Supply, Inc. (NYSE:SITE) is a wholesale distributor of landscape supplies. On June 12, 2023, SiteOne Landscape Supply, Inc. (NYSE:SITE) stock closed at $151.70 per share. One-month return of SiteOne Landscape Supply, Inc. (NYSE:SITE) was 2.31%, and its shares gained 29.22% of their value over the last 52 weeks. SiteOne Landscape Supply, Inc. (NYSE:SITE) has a market capitalization of $6.884 billion.
Baron Small Cap Fund made the following comment about SiteOne Landscape Supply, Inc. (NYSE:SITE) in its first quarter 2023 investor letter:
“SiteOne Landscape Supply, Inc. (NYSE:SITE) is the largest distributor of wholesale landscape supplies in North America, selling irrigation, hardscapes, agronomics, and nursery products to professional contractors through its network of branches primarily for residential and commercial maintenance. Shares rose during the quarter on a 2023 financial outlook that beat analyst estimates and a recovery in investor sentiment for housing-related stocks. However, we expect EBITDA to be lower this year as margins retrace from extended levels and organic sales soften from an anticipated slowdown in housing starts. Still, we have great confidence that SiteOne is poised for continued growth and margin enhancement. We think SiteOne can more than double its present 16% share of the highly fragmented market through organic growth and strategic acquisitions and, over time, greatly increase its profit margins. We believe that EBITDA can double over the next five years, that the company will generate excess free cash flow (FCF), and that the trading multiple of the stock will rise from present levels, all which should drive strong stock performance over the long term.”
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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, 18 hedge fund portfolios held SiteOne Landscape Supply, Inc. (NYSE:SITE) at the end of first quarter 2023 which was 18 in the previous quarter.
We discussed SiteOne Landscape Supply, Inc. (NYSE:SITE) in another article and shared the list of best industrial distribution stocks to buy. 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.
