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 Altair Engineering Inc. (NASDAQ:ALTR) in the first quarter 2023 investor letter. Altair Engineering Inc. (NASDAQ:ALTR) is a software and cloud solutions provider headquartered in Troy, Michigan. On June 12, 2023, Altair Engineering Inc. (NASDAQ:ALTR) stock closed at $76.40 per share. One-month return of Altair Engineering Inc. (NASDAQ:ALTR) was 12.44%, and its shares gained 54.75% of their value over the last 52 weeks. Altair Engineering Inc. (NASDAQ:ALTR) has a market capitalization of $6.166 billion.
Baron Small Cap Fund made the following comment about Altair Engineering Inc. (NASDAQ:ALTR) in its first quarter 2023 investor letter:
“Altair Engineering Inc. (NASDAQ:ALTR) is a leader in the multi-billion dollar computer aided simulation market. Alongside a general recovery in technology stocks, Altair’s shares appreciated after it reported above-consensus quarterly results. Management described a strong demand environment despite ongoing macroeconomic concerns. Large deal momentum remained healthy, while key verticals, including automotive and technology, performed at or above expectations across all key geographies. Over the past few years, the company has expanded its core offering to data analytics, mostly through acquisitions, and management described improved dynamics in this segment of the business as it scales. In addition to strong quarterly results, company guidance pointed to higher growth and profitability and implied additional margin expansion in the years to come. We believe Altair should benefit from secular trends, including an increase in product complexity that will require customers to adopt more simulation, while reduced computing costs and product innovation should allow its products to be adopted by a broader set of users.”
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Altair Engineering Inc. (NASDAQ:ALTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Altair Engineering Inc. (NASDAQ:ALTR) at the end of first quarter 2023 which was 19 in the previous quarter.
We discussed Altair Engineering Inc. (NASDAQ:ALTR) in another article and shared Conestoga Small Cap Strategy’s views on the company. 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.
