Baron Funds Expects Huge Growth for Dynatrace (DT)

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 Dynatrace, Inc. (NYSE:DT) in the second quarter investor letter. Based in Waltham, Massachusetts, Dynatrace, Inc. (NYSE:DT) is a technology company. On September 9, 2022, Dynatrace, Inc. (NYSE:DT) stock closed at $40.73 per share. One-month return of Dynatrace, Inc. (NYSE:DT) was -4.93% and its shares lost 41.11% of their value over the last 52 weeks. Dynatrace, Inc. (NYSE:DT) has a market capitalization of $11.703 billion.

Here is what Baron Funds specifically said about Dynatrace, Inc. (NYSE:DT) in its Q2 2022 investor letter:

“Dynatrace, Inc. (NYSE:DT), a software company that provides the ability to observe network and application activity to optimize performance, was trading at 18 times next year’s free cash flow and only 9 times our 2026 estimates. For a company growing cash flow at a 30% rate, this means we could see a double or even a triple over our forecast period.”

Dynatrace, Inc. (NYSE:DT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Dynatrace, Inc. (NYSE:DT) at the end of the second quarter which was also 43 in the previous quarter.

We discussed Dynatrace, Inc. (NYSE:DT) in another article and shared the list of stocks to sell according to Chase Coleman’s Tiger Global. 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.