Baron Funds, an investment management company, released its “Baron Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund gained 7.88% (Institutional Shares) which exceeded the primary benchmark the Russell 2000 Growth Index’s 6.07% return. It also outperformed the S&P 500 Index’s 7.50% return. The sudden bank failures raised concerns about the health of the US regional banking system. The fund doesn’t own any investments in banks for the past 11 years. The company is focused on investing in businesses with durable competitive advantages. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Growth Fund highlighted stocks like Krispy Kreme, Inc. (NASDAQ:DNUT) in the first quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Krispy Kreme, Inc. (NASDAQ:DNUT) operates an omnichannel business model that serves doughnuts and coffee. On June 12, 2023, Krispy Kreme, Inc. (NASDAQ:DNUT) stock closed at $14.85 per share. One-month return of Krispy Kreme, Inc. (NASDAQ:DNUT) was -1.53%, and its shares gained 15.65% of their value over the last 52 weeks. Krispy Kreme, Inc. (NASDAQ:DNUT) has a market capitalization of $2.526 billion.
Baron Growth Fund made the following comment about Krispy Kreme, Inc. (NASDAQ:DNUT) in its first quarter 2023 investor letter:
“We also made an investment in Krispy Kreme, Inc. (NASDAQ:DNUT), a manufacturer and retailer of branded fresh doughnuts. Krispy Kreme operates an omni-channel model, selling its product through its owned and franchised doughnut shops, in grocery and convenience stores through its Delivered Fresh Daily (DFD) network, and via e-commerce and delivery in the U.S. and non-U.S. markets. The company also owns Insomnia Cookies, a digital-first brand specializing in cookies and focused on young consumers.
Krispy Kreme benefits from strong global brand awareness and ubiquitous appeal. The company’s brand awareness is supported by experiential shops known as Hot Light Theaters, which create an immersive and interactive environment to showcase the brand and high-quality product. At the same time, Krispy Kreme’s unique hub-and-spoke model allows the company to maximize customer reach and minimize capital expenditures while maintaining freshness and quality…”(Click here to read the full text)
Krispy Kreme, Inc. (NASDAQ:DNUT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Krispy Kreme, Inc. (NASDAQ:DNUT) at the end of first quarter 2023 which was 11 in the previous quarter.
We discussed Krispy Kreme, Inc. (NASDAQ:DNUT) in another article and shared Baron Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
