Baron Funds, an investment management company, released its “Baron Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund had a fine quarter and is having a good year. The fund was down 3.11% (Institutional Shares) in the third quarter, in a weak market and year-to-date the fund was up 12.92%. The Fund outperformed the Russell 2000 Growth Index, which fell 7.32% in the quarter and is only up 5.24% year-to-date. The Fund slightly outperformed the S&P 500 Index in the quarter but is trailing year-to-date. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Small Cap Fund highlighted stocks like Vertiv Holdings Co (NYSE:VRT) in the third quarter 2023 investor letter. Headquartered in Westerville, Ohio, Vertiv Holdings Co (NYSE:VRT) manufactures and services critical digital infrastructure technologies and life cycle services. On November 27, 2023, Vertiv Holdings Co (NYSE:VRT) stock closed at $42.55 per share. One-month return of Vertiv Holdings Co (NYSE:VRT) was 8.35%, and its shares gained 222.35% of their value over the last 52 weeks. Vertiv Holdings Co (NYSE:VRT) has a market capitalization of $16.23 billion.
Baron Small Cap Fund made the following comment about Vertiv Holdings Co (NYSE:VRT) in its Q3 2023 investor letter:
“Vertiv Holdings Co (NYSE:VRT), a provider of critical infrastructure solutions to the data center industry, increased over 50% in the quarter. Vertiv is a leading vendor of thermal management solutions and stands to benefit from the growth in artificial intelligence (AI) and corresponding investments in more complex cooling systems necessitated by the expected increase in the energy density of data centers. Vertiv is again reporting strong margins and free-cash-flow (FCF) under new leadership, after an operational deficiency in managing rising costs in the fourth quarter of 2022 chunked earnings and sent the stock swooning. The multiple has since expanded as investors gained confidence in the duration of the company’s growth trajectory as well as its ability to capture the massive investment cycle ahead. We selectively trimmed our position into strength, but the stock remains the top holding given upside in earnings power as the company closes the margin gap with peers and benefits from accelerated industry growth.”
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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, 66 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of third quarter which was 54 in the previous quarter.
We discussed Vertiv Holdings Co (NYSE:VRT) in another article and shared the list of stocks that billionaire Paul Tudor Jones and insiders love. In addition, please check out our hedge fund investor letters Q3 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.
