Definitive Healthcare Corp. (DH) Outperformed in the Second Quarter

Baron Funds, an asset management company, released its “Baron Discovery Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was down 22.66% in the second quarter, 3.41% below its benchmark index, the Russell 2000 Growth Index. The firm focuses more on secular growth stories instead of cyclical companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Definitive Healthcare Corp. (NASDAQ:DH) in the second quarter investor letter. Headquartered in Framingham, Massachusetts, Definitive Healthcare Corp. (NASDAQ:DH) is a healthcare intelligence provider. On September 12, 2022, Definitive Healthcare Corp. (NASDAQ:DH) stock closed at $20.59 per share. One-month return of Definitive Healthcare Corp. (NASDAQ:DH) was -8.04% and year-to-date its shares lost 24.66% of their value. Definitive Healthcare Corp. (NASDAQ:DH) has a market capitalization of $2.07 billion.

Here is what Baron Funds specifically said about Definitive Healthcare Corp. (NASDAQ:DH) in its Q2 2022 investor letter:

“Definitive Healthcare Corp. (NASDAQ:DH), a health care information database company, outperformed in the quarter. It announced earnings in early May that beat consensus for the first quarter, and raised its estimates for the full year of 2022 to levels that also beat consensus. We believe that Definitive has significant opportunities to increase its overall market share. We expect 2022 revenues of about $225 million versus a $10 billion market opportunity.

We also believe the company can continue to compound its growth by around 25% for years to come, and can continue to grow its adjusted cash flow margins from 29% this year to 40% in our later year estimates. We think investors are starting to understand the company’s potential, and we believe that its valuation is still compelling.”

Definitive Healthcare Corp. (NASDAQ:DH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Definitive Healthcare Corp. (NASDAQ:DH)  at the end of the second quarter which was 12 in the previous quarter.

We discussed Definitive Healthcare Corp. (NASDAQ:DH) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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