Baron Funds, an asset management firm, published its “Baron FinTech Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 1.29% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing the S&P 500 Index, which appreciated 6.17%, and modestly underperforming the FactSet Global FinTech Index which rose 2.77% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron FinTech Fund, in its Q1 2021 investor letter, mentioned Grid Dynamics Holdings, Inc. (NASDAQ: GDYN), and shared their insights on the company. Grid Dynamics Holdings, Inc. is a San Ramon, California-based engineering IT services company that currently has a $910.1 million market capitalization. Since the beginning of the year, GDYN delivered a 33.33% return, extending its 12-month gains to 103.14%. As of May 14, 2021, the stock closed at $16.80 per share.
Here is what Baron FinTech Fund has to say about Grid Dynamics Holdings, Inc. in its Q1 2021 investor letter:
“Grid Dynamics Holdings, Inc. provides outsourced software development to business customers. Shares increased after the company reported improving financial results and 2021 guidance that exceeded analyst expectations. Following a major pullback in spending last year by large customers in the retail sector, management has successfully pivoted the company toward non-retail customers with better growth prospects, which now represent a significant majority of revenue. We continue to own the stock because we believe the company has unique capabilities and a long runway for growth.”
Our calculations show that Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Grid Dynamics Holdings, Inc. was in 13 hedge fund portfolios. GDYN delivered a 17.24% return in the past 3 months.
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