Baron Funds, an investment management firm, released its “Baron FinTech Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. During the quarter concluding on September 30, 2023, Baron FinTech Fund® (Institutional Shares) experienced a 1.30% increase, contrasting with a 6.77% loss for the FactSet Global FinTech Index (the Benchmark). Since its inception on December 31, 2019, the Fund has achieved an annualized growth of 6.50%, surpassing the Benchmark, which declined by 2.22%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Baron FinTech Fund mentioned Block, Inc. (NYSE:SQ) and explained its insights for the company. Block, Inc. (NYSE:SQ) is a San Francisco, California-based financial services company with a $35.7 billion market capitalization. Block, Inc. (NYSE:SQ) delivered a -18.05% return since the beginning of the year, while its 12-month returns are down by -26.71%. The stock closed at $58.19 per share on November 17, 2023.
Here is what Baron FinTech Fund has to say about Block, Inc. (NYSE:SQ) in its Q3 2023 investor letter:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to a confluence of factors, including slowing growth, a brief system outage, and the departure of a key executive who ran the Square business segment. Ongoing investor concerns over consumer spending and a recession did not help sentiment. Nevertheless, Block reported strong quarterly results with 27% gross profit growth and adjusted EBITDA more than doubling. We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion. We continue to own the stock due to Block’s long runway for growth, durable competitive advantages, and track record of innovation.”
A portrait of a confident, affluent businessperson signing a money market savings account agreement.
Our calculations show that Block, Inc. (NYSE:SQ) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Block, Inc. (NYSE:SQ) was in 66 hedge fund portfolios at the end of the second quarter of 2023, compared to 64 funds in the previous quarter. Block, Inc. (NYSE:SQ) delivered a -14.38% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
Suggested Articles:
- 20 States That Produce Most Wind Energy
- 30 Best School Districts in USA
- 12 Best Crude Oil Stocks To Buy As Tensions Rise
Disclosure: None. This article is originally published at Insider Monkey.
