Baron Funds: “Grid Dynamics (GDYN) has Unique Capabilities and a Long Runway for Growth”

Baron Funds, an asset management firm, published its “Baron FinTech Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.65% was delivered by the fund’s institutional shares for the third quarter of 2021, compared to the S&P 500 Index, which appreciated 0.58%, and the FactSet Global FinTech Index which rose 3.72% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron FinTech Fund, in its Q3 2021 investor letter, mentioned Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) and discussed its stance on the firm. Grid Dynamics Holdings, Inc. is a San Ramon, California-based level digital transformation services company with a $2.5 billion market capitalization. GDYN delivered a 211.67% return since the beginning of the year, while its 12-month returns are up by 270.47%. The stock closed at $39.27 per share on December 02, 2021.

Here is what Baron FinTech Fund has to say about Grid Dynamics Holdings, Inc. in its Q3 2021 investor letter:

“Grid Dynamics Holdings Inc. provides outsourced software development to business customers. Shares increased after the company reported strong quarterly results with 72% organic revenue growth and raised annual guidance. Grid is benefiting from robust demand as clients across industries invest in digital transformation. The company issued new shares in late June, which temporarily depressed the share price but provided dry powder for M&A. We continue to own the stock because we believe the company has unique capabilities and a long runway for growth.”

Photo by Austin Distel on Unsplash

Based on our calculations, Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. GDYN was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) delivered a 35.09% return in the past 3 months.

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