Baron Funds, an asset management firm, published its “Baron Durable Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Durable Advantage Fund (the “Fund”) declined 10.3% (Institutional Shares) during the first quarter, compared to the 4.6% decline for the S&P 500 Index (the “Index”), the Fund’s benchmark. 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 Durable Advantage Fund mentioned Adobe Inc. (NASDAQ:ADBE) and explained its insights for the company. Founded in 1982, Adobe Inc. (NASDAQ:ADBE) is a San Jose, California-based multinational computer software company with a $193.5 billion market capitalization. Adobe Inc. (NASDAQ:ADBE) delivered a -27.76% return since the beginning of the year, while its 12-month returns are down by -14.77%. The stock closed at $409.65 per share on May 17, 2022.
Here is what Baron Durable Advantage Fund has to say about Adobe Inc. (NASDAQ:ADBE) in its Q1 2022 investor letter:
“Shares of Adobe Inc. (NASDAQ:ADBE), the leading provider of content creation, document management, and marketing software, were weak in the quarter, down 19.7% along with the overall software industry. Continued investor fears around the possibility of pandemic-driven pullforward in demand, increasing competition, and earnings results that were in line with expectations also weighed on shares. While Adobe is seeing slower year-over-year volume growth due to tougher compares, it continues to execute well, with management calling out strong engagement and retention rates in Digital Media, in line with pre-COVID levels while the company continues innovating rapidly, broadening its offering. We continue to believe that Adobe is well positioned given its marquee brand and best-in-class technology, which helps content creators and marketing professionals better reach, communicate, and sell their companies’ products in an increasingly digitally connected world.”
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Our calculations show that Adobe Inc. (NASDAQ:ADBE) ranks 23rd on our list of the 30 Most Popular Stocks Among Hedge Funds. Adobe Inc. (NASDAQ:ADBE) was in 94 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 95 funds in the previous quarter. Adobe Inc. (NASDAQ:ADBE) delivered a -14.57% return in the past 3 months.
In July 2021, we also shared another hedge fund’s views on Adobe Inc. (NASDAQ:ADBE) 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.
