Baron Asset Fund recently published its first-quarter commentary – a copy of which can be downloaded here. During the first quarter of 2020, the Baron Asset Fund returned -16.63% (institutional shares). In comparison, the benchmark S&P 500 Index was down 19.60%, while the Russell Midcap Growth Index was down 20.04%.
In the said letter, Baron Asset Fund highlighted a few stocks and SBA Communications Corp (NASDAQ:SBAC) is one of them. Year-to-date, SBAC stock gained 22.2% and on May 5th it had a closing price of $294.51. Its market cap is of $33.0 billion. Here is what Baron Asset Fund said:
“SBA Communications Corp., which owns and operates towers for wireless communications, contributed to performance because of its continued organic growth and its relative immunity from COVID-19 related economic disruption. In addition, the merger of two large wireless carriers, Sprint and T-Mobile, was upheld by the courts. This removed uncertainty around the pace at which the combined entity will invest in infrastructure to upgrade its network, benefiting SBA. We retain conviction in our investment because of the ongoing growth in demand for wireless voice, data, and video; the company’s strong competitive position; and its consistent ability to return capital to shareholders through share buybacks and a recently instituted dividend.”
In Q4 2019, the number of bullish hedge fund positions on SBAC stock increased by about 10% from the previous quarter (see the chart here).
Disclosure: None. This article is originally published at Insider Monkey.