Baron Funds: “Fair Isaac (FICO) Will Be a Steady Earnings Compounder”

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned Fair Isaac Corporation (NYSE:FICO) and explained its insights into the company. Founded in 1956, Fair Isaac Corporation (NYSE:FICO) is a San Jose, California-based data analytics company with a $9.3 billion market capitalization. Fair Isaac Corporation (NYSE:FICO) delivered a -16.63% return since the beginning of the year, while its 12-month returns are down by -26.43%. The stock closed at $361.53 per share on May 13, 2022.

Here is what Baron Asset Fund has to say about Fair Isaac Corporation (NYSE:FICO) in its Q1 2022 investor letter:

“Fair Isaac Corporation (NYSE:FICO) is a data and analytics company focused on predicting consumer behavior, best known for its algorithms used to gauge consumer credit. Its shares gained as the company reported solid earnings and management sounded optimistic regarding its outlook for the remainder of the year, driven by continued special price increases and improved growth and profitability in its software business. We believe that Fair Isaac will be a steady earnings compounder, which should drive solid returns for the stock over a multi-year period.”

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Our calculations show that Fair Isaac Corporation (NYSE:FICO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Fair Isaac Corporation (NYSE:FICO) was in 34 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. Fair Isaac Corporation (NYSE:FICO) delivered a -30.02% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Fair Isaac Corporation (NYSE:FICO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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