Baron Funds: “We Retain Long-Term Conviction in Alkami (ALKT)”

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned Alkami Technology, Inc. (NASDAQ:ALKT) and explained its insights for the company. Founded in 2009, Alkami Technology, Inc. (NASDAQ:ALKT) is a Plano, Texas-based cloud-based digital banking solutions provider with a $1.3 billion market capitalization. Alkami Technology, Inc. (NASDAQ:ALKT) delivered a -27.02% return since the beginning of the year, while its 12-month returns are down by -51.12%. The stock closed at $14.64 per share on September 06, 2022.

Here is what Baron Fintech Fund has to say about Alkami Technology, Inc. (NASDAQ:ALKT) in its Q2 2022 investor letter:

“Shares of Alkami Technology Inc., a cloud-based digital banking platform, contributed to performance. The company reported good first quarter earnings results and reaffirmed its plan to achieve profitability by the end of next year. The near-term market dynamics for high-growth but unprofitable software stocks are volatile, but we retain long-term conviction in Alkami. We believe the company is well positioned to grow revenue 25% or more for the next several years, barring a major economic recession.”

Our calculations show that Alkami Technology, Inc. (NASDAQ:ALKT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Alkami Technology, Inc. (NASDAQ:ALKT) was in 11 hedge fund portfolios at the end of the second quarter of 2022. Alkami Technology, Inc. (NASDAQ:ALKT) delivered a 5.10% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on Alkami Technology, Inc. (NASDAQ:ALKT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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