Baron Funds Believes that Iridium Communications (IRDM) has a Huge Market Potential

Baron Funds, an asset management company, released its “Baron Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund fell 18.69%. The fund performed moderately better in the quarter compared to a 19.25% decline in the Russell 2000 Growth benchmark Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Baron Funds discussed stocks like Iridium Communications Inc. (NASDAQ:IRDM). Headquartered in McLean, Virginia, Iridium Communications Inc. (NASDAQ:IRDM) is a satellite communication company. On September 1, 2022, Iridium Communications Inc. (NASDAQ:IRDM) stock closed at $44.69 per share. One-month return of Iridium Communications Inc. (NASDAQ:IRDM) was -2.40% and its shares lost 3.02% of their value over the last 52 weeks. Iridium Communications Inc. (NASDAQ:IRDM) has a market capitalization of $5.674 billion.

Here is what Baron Funds specifically said about Iridium Communications Inc. (NASDAQ:IRDM):

“Iridium Communications Inc. (NASDAQ:IRDM), a provider of global communications via its low-earth orbit satellite constellation, serves an addressable market that we estimate is at least 5 times larger than its current business. Growth is benefiting from growing demand for communications services in regions of the world that lack terrestrial network coverage, as well as the emerging Internet-of-Things. We estimate that almost 80% of Iridium’s revenue is recurring, including almost 20% of revenue that is on multi-year contracts with the U.S. Government.”

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Iridium Communications Inc. (NASDAQ:IRDM) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Iridium Communications Inc. (NASDAQ:IRDM) was held by 20 hedge fund portfolios at the end of the second quarter, which was 26 in the previous quarter.

We discussed Iridium Communications Inc. (NASDAQ:IRDM) in another article and shared Baron Funds’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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