Baron Funds is Bullish on Bright Horizons Family Solutions (BFAM)

Baron Funds, an investment management company, released its “Baron Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 1.61% compared to 0.24% up for the Russell 2000 Growth Index. The fund’s performance was in-line with the benchmark in the quarter, which was attributed to stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Bright Horizons Family Solutions Inc. (NYSE:BFAM) in the Q3 2022 investor letter. Headquartered in Newton, Massachusetts, Bright Horizons Family Solutions Inc. (NYSE:BFAM) is an early education and child care provider. On November 15, 2022, Bright Horizons Family Solutions Inc. (NYSE:BFAM) stock closed at $75.52 per share. One-month return of Bright Horizons Family Solutions Inc. (NYSE:BFAM) was 29.43% and its shares lost 42.55% of their value over the last 52 weeks. Bright Horizons Family Solutions Inc. (NYSE:BFAM) has a market capitalization of $4.361 billion.

Baron Funds made the following comment about Bright Horizons Family Solutions Inc. (NYSE:BFAM) in its Q3 2022 investor letter:

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is the leading U.S. provider of corporate-sponsored childcare. Shares fell as labor shortages exacerbated the time needed to backfill center enrollment lost during COVID. While we believe full enrollment recovery is a matter of when, not if, it now appears that this recovery will occur sometime in 2023 as opposed to the year-end 2022 target. Margins will also remain pressured as wage hikes to attract new teachers outpace tuition increases. Despite near-term headwinds, we remain bullish on this high-quality company.”

Photo by Jerry Wang on Unsplash

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Bright Horizons Family Solutions Inc. (NYSE:BFAM) at the end of the second quarter which was 21 in the previous quarter.

We discussed Bright Horizons Family Solutions Inc. (NYSE:BFAM) in another article and shared the best education stocks to buy in 2022. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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