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 Veeva Systems Inc (NYSE:VEEV) is one of them. Veeva Systems is a cloud-computing company focused on life sciences and pharmaceutical industry applications. Year-to-date, VEEV stock gained 38.8% and on May 4th it had a closing price of $189.14. Its market cap is of $29.16 billion. Here is what Baron Asset Fund said:
“Veeva Systems Inc. provides cloud-based software focused on customer relationship, content, collaboration, and data management solutions tailored mostly to the life sciences industry. Veeva outperformed during the quarter because its revenues are largely subscription-based, and they are, therefore, expected to be well suited to withstand potential economic disruption related to COVID-19. In addition, the health care technology sub-industry is expected to be less impacted by this disruption than many other sub-industries. We believe that Veeva’s software remains best-inclass, while being highly valued by its customers for use in mission critical areas of their businesses. We believe Veeva remains exceptionally well positioned for sustained long-term growth.”
In Q4 2019, the number of bullish hedge fund positions on VEEV stock increased by about 22% from the previous quarter (see the chart here).
Disclosure: None. This article is originally published at Insider Monkey.