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 SBA Communications Corporation (NASDAQ: SBAC) and emphasized their views on the company. SBA Communications Corporation is a Boca Raton, Florida-based real estate investment trust that currently has a $29.96 billion market capitalization. Since the beginning of the year, SBAC delivered a -2.85% return, while its 12-month gains are still up by 13.15%. As of March 22, 2021, the stock closed at $274.10 per share.
Here is what Baron Funds has to say about SBA Communications Corporation in their Q4 2020 investor letter:
“After strong performance earlier in the year, SBA Communications Corp., a REIT that owns and operates approximately 30,000 cell towers domestically and internationally, detracted from performance. SBA was impacted as many investors rotated into “laggards.” In addition, the slight increase in interest rates during the quarter impacted companies with elevated valuations and leveraged balance sheets. We are optimistic about SBA’s prospects because we believe the inevitable growth in data and video usage should be a durable driver of demand for its services. We also believe the company will be able to consistently return capital to shareholders via share buybacks and dividends.”
Our calculations show that SBA Communications Corporation (NASDAQ: SBAC) 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, SBA Communications Corporation was in 43 hedge fund portfolios. SBAC delivered a -0.66% return in the past 3 months.