Baron Funds: “We Expect IDEXX’s Margins to Continue to Improve”

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. 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 Asset Fund mentioned IDEXX Laboratories, Inc. (NASDAQ:IDXX) and explained its insights for the company. Founded in 1983, IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a Westbrook, Maine-based multinational corporation with a $30.2 billion market capitalization. IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a -45.30% return since the beginning of the year, while its 12-month returns are down by -31.21%. The stock closed at $360.20 per share on May 16, 2022.

Here is what Baron Asset Fund has to say about IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q1 2022 investor letter:

“Shares of veterinary diagnostics leader IDEXX Laboratories, Inc. (NASDAQ:IDXX) fell due to broader multiple compression in high-growth businesses. We believe that IDEXX’s business remains healthy and that the veterinary industry should consistently grow at a faster rate than it experienced pre-pandemic. We believe that the long-term secular trends around pet ownership and spending on pet care structurally accelerated during the pandemic. The company’s competitive position remains outstanding, and we expect new proprietary diagnostic tests and sales force expansion to meaningfully contribute to growth. We also expect the company’s margins to continue to improve considerably over time.”

Copyright: mikkolem / 123RF Stock Photo

Our calculations show that IDEXX Laboratories, Inc. (NASDAQ:IDXX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. IDEXX Laboratories, Inc. (NASDAQ:IDXX) was in 43 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 43 funds in the previous quarter. IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a -28.75% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on IDEXX Laboratories, Inc. (NASDAQ:IDXX) 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.