Exceptional Growth Prospects Make Grid Dynamics Holdings (GDYN) More Attractive

Baron Funds, an investment management company, released its “Baron Small Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 3.64% (Institutional Shares), underperforming the Russell 2000 Growth Index, which was 0.24% up, and outperforming the S&P 500 Index, which was 4.88% down. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds discussed stocks like Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in the Q3 2022 investor letter. Headquartered in San Ramon, California, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is a digital transformation services provider. On November 1, 2022, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) stock closed at $13.56 per share. One-month return of Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was -31.55%, and its shares lost 53.19% of their value over the last 52 weeks. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) has a market capitalization of $1.002 billion.

Here is what Baron Funds specifically said about Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)  in its Q3 2022 investor letter:

“We added to our Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) position as part of the company’s equity raise to fund potential future acquisitions. Management has proven to be successful acquirers in the recent past, and we would expect a transaction to be nicely accretive and help diversify the business geographically. The company is growing exceptionally (52% organic sales growth for the second quarter of 2022), and we believe EPS can compound at 20% to 30% for many years, as Grid Dynamics provides its customers technology consulting, software development, and data analytics for their digital transformation.”

Photo by mahdis mousavi on Unsplash

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) at the end of the second quarter which was 18 in the previous quarter.

We discussed Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in another article and shared Baron Funds’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 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.