Baron Asset Fund: “WIX’s Shares Could Eventually Moderate”

Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron Asset Fund” investor letter – a copy of which can be downloaded here. A return of 15.14% was recorded by its Retail Shares, and 15.21% by its Institutional Shares in the fourth quarter of 2020, both below its Russell Midcap Growth Benchmark that delivered a 19.02% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Funds, in their Q4 2020 investor letter, mentioned Ltd. (NASDAQ: WIX) and emphasized their views on the company. Ltd. is a Tel Aviv-Yafo, Israel-based web development company that currently has a $16.5 billion market capitalization. Since the beginning of the year, WIX delivered an 18.50% return, impressively extending its 12-month gains to 176.57%. As of March 22, 2021, the stock closed at $296.21 per share.

Here is what Baron Funds has to say about Ltd. in their Q4 2020 investor letter:

“Weakness in IT was largely due to share price declines from web software firm Ltd. After doubling during the first three quarters of 2020, Wix’s shares fell slightly on concerns that its business, which benefited from increased website creation during the pandemic, could eventually moderate.”

Business Ideas with Low Investment and High Profit

Our calculations show that Ltd. (NASDAQ: WIX) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Ltd. was in 37 hedge fund portfolios, compared to 36 funds in the third quarter. WIX delivered an 8.82% return in the past 3 months.