Easing COVID-Related Restrictions Helped Yum China Holdings (YUMC) in the Second Quarter

Baron Funds, an asset management company, released its “Baron New Asia Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined 7.89% in the second quarter compared to a 9.00% decline for its benchmark index, the MSCI AC Asia ex Japan Index. Driven by the reversal and modest recovery of China-related equities, the fund outperformed its benchmark index and the all-cap growth proxy in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Yum China Holdings, Inc. (NYSE:YUMC) in the second quarter investor letter. Headquartered in Shanghai, China, Yum China Holdings, Inc. (NYSE:YUMC) operates as a restaurant company. On September 9, 2022, Yum China Holdings, Inc. (NYSE:YUMC) stock closed at $49.60 per share. One-month return of Yum China Holdings, Inc. (NYSE:YUMC) was 3.18% and its shares lost 19.10% of their value over the last 52 weeks. Yum China Holdings, Inc. (NYSE:YUMC) has a market capitalization of $20.775 billion.

Here is what Baron Funds specifically said about Yum China Holdings, Inc. (NYSE:YUMC) in its Q2 2022 investor letter:

“Shares of Yum China Holdings, Inc. (NYSE:YUMC), master franchisee for KFC and Pizza Hut in China, rose in the second quarter, largely due to a recovery from weakness in the prior two quarters as COVID-related restrictions started to ease. We believe Yum China’s fortress balance sheet will allow it to navigate even prolonged rolling lockdowns in China and accelerating underlying unit growth at high returns on capital implies earnings power as reopening continues.”

Teerapong Teerapong/Shutterstock.com

Yum China Holdings, Inc. (NYSE:YUMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Yum China Holdings, Inc. (NYSE:YUMC) at the end of the second quarter which was 27 in the previous quarter.

We discussed Yum China Holdings, Inc. (NYSE:YUMC) in another article and shared China rebound stocks to buy according to Jim Cramer. 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.