Baron Discovery Fund’s Largest Investment: Mercury Systems (MRCY)

Baron Funds, an asset management company, released its “Baron Discovery Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was down 22.66% in the second quarter, 3.41% below its benchmark index, the Russell 2000 Growth Index. The firm focuses more on secular growth stories instead of cyclical companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in the second quarter investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company. On September 9, 2022, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $47.38 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was -7.89% and its shares gained 0.81% of their value over the last 52 weeks.  Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.733 billion.

Here is what Baron Funds specifically said about Mercury Systems, Inc. (NASDAQ:MRCY) in its Q2 2022 investor letter:

“We spoke about our largest investment, Mercury Systems, Inc. (NASDAQ:MRCY), which was trading at 14 times this year’s adjusted cash flow, near the historic low point for this market-leading defense electronics contractor. If our estimates are correct, Mercury is trading at under 9 times our 2026 cash flow estimates, meaning that shares should double over the forecast period assuming normalized valuations for the company.”

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Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of the second quarter which was 17 in the previous quarter.

We discussed  Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared Baron Funds’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.