Baron Funds, an investment management company, released its “Baron Small Cap Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was 4.24% up in the fourth quarter compared to a 4.13% return for the Russell 2000 Growth Index and a 7.56% return for the S&P 500 Index. For 2022, the fund was down 31.05% compared to a 26.36% fall for the Russell 2000 Growth Index and an 18.11% decline for the S&P 500 Index. Inflation and aggressive fed tightening impacted the fund’s performance in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Small Cap Fund highlighted stocks like Vertiv Holdings Co (NYSE:VRT) in its Q4 2022 investor letter. Headquartered in Columbus, Ohio, Vertiv Holdings Co (NYSE:VRT) manufactures and services critical digital infrastructure technologies and life cycle services. On February 16, 2023, Vertiv Holdings Co (NYSE:VRT) stock closed at $16.03 per share. One-month return of Vertiv Holdings Co (NYSE:VRT) was 14.99%, and its shares lost 22.52% of their value over the last 52 weeks. Vertiv Holdings Co (NYSE:VRT) has a market capitalization of $6.048 billion.
Baron Small Cap Fund made the following comment about Vertiv Holdings Co (NYSE:VRT) in its Q4 2022 investor letter:
“Vertiv Holdings Co (NYSE:VRT), a leading provider of critical infrastructure solutions for data centers and communications networks, rose significantly in the quarter, after the company reported strong sales and much improved margins. The company demonstrated that it was able to price its products in excess of inflationary cost headwinds, which had led to disappointing earnings earlier in the year. The company expects margins to continue to improve going forward, as its price/cost ratio is now in balance and freecash-flow is stronger. Management characterized demand as “robust,” which we expect will drive strong organic growth. We increased our position early in the year believing that management could get on the right side of the pricing equation, which has played out, and the stock has rebounded nicely. We still see good upside in the stock based on our expectation of continued growth and a higher trading multiple.”
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Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the third quarter, which was 34 in the previous quarter.
We discussed Vertiv Holdings Co (NYSE:VRT) in another article and shared the list of best under-the-radar stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.
