Baron Funds, an investment management company, released its “Baron Partners Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund outperformed both its benchmarks and returned 15.54% (Institutional Shares) in the second quarter. The Russell Midcap Growth Index (the Index) and the S&P 500 Index returned 6.23% and 8.74%, respectively, during the same period. The fund appreciated 42.59% year-to-date compared to 15.94% and 16.89%, respectively for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Partners Fund highlighted stocks like Tesla, Inc. (NASDAQ:TSLA) in the Q2 2023 investor letter. Headquartered in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, and sells fully electric vehicles as well as energy generation and storage technologies. On September 1, 2023, Tesla, Inc. (NASDAQ:TSLA) stock closed at $245.01 per share. One-month return of Tesla, Inc. (NASDAQ:TSLA) was -2.56%, and its shares lost 9.33% of their value over the last 52 weeks. Tesla, Inc. (NASDAQ:TSLA) has a market capitalization of $777.659 billion.
Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
Tesla, Inc. (NASDAQ:TSLA) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of second quarter which was 82 in the previous quarter.
We discussed Tesla, Inc. (NASDAQ:TSLA) in another article and shared the list of most valuable brands in the world in 2023. In addition, please check out our hedge fund investor letters Q2 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.
