Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 6.49% (Institutional Shares) up in the second quarter and 16.54% up for the first half of the year. This quarter, the Fund underperformed the broader S&P 500 Index, as larger stocks beat smaller ones while, year-to-date the fund’s performance is comparable to the S&P 500 Index. The fund performed similarly to the Russell 2000 Growth Index (the Benchmark) during the quarter, and year-to-date the fund returned nearly 300 points ahead of the benchmark. 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 second 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 August 30, 2023, Vertiv Holdings Co (NYSE:VRT) stock closed at $38.89 per share. One-month return of Vertiv Holdings Co (NYSE:VRT) was 12.72%, and its shares gained 238.47% of their value over the last 52 weeks. Vertiv Holdings Co (NYSE:VRT) has a market capitalization of $14.799 billion.
Baron Small Cap Fund made the following comment about Vertiv Holdings Co (NYSE:VRT) in its second quarter 2023 investor letter:
“Vertiv Holdings Co (NYSE:VRT) provides critical digital infrastructure for data centers. Its shares rose sharply after Vertiv reported strong earnings, featuring 35% organic sales growth and increased 2023 guidance, which helped improve management credibility regarding margin expansion plans. In addition, the stock’s trading multiple increased on the belief that Vertiv stands to benefit from generative AI-related data center investments. Generative AI will require an increase in energy density due to the need for additional computing power, which, in turn, will necessitate new cooling solutions. Vertiv should be able to leverage its leadership position in air cooling, strong relationships with customers, and dominant service network to gain share and grow rapidly. We believe Vertiv’s earnings power will increase as the company closes the margin gap with peers and revenue grows on the back of increased investments in data centers.”
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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, 54 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of second quarter which was 41 in the previous quarter.
We discussed Vertiv Holdings Co (NYSE:VRT) in another article and shared the list of best performing stocks in the last 3 months. In addition, please check out our hedge fund investor letters Q2 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.
