Here’s Why Baron Discovery Fund Sold Mercury Systems (MRCY)

Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 11.20% in the first quarter compared to the Russell 2000 Growth Index’s return of 6.07%. The strong performance of holdings in the Information Technology (IT), Industrials, and Consumer Discretionary sectors and the Fund’s higher exposure to the top-performing IT sector led the fund to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Discovery Fund highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in the first quarter 2023 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves the defense and aerospace industries.  On May 15, 2023, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $41.95 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was -14.75%, and its shares lost 28.62% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.441 billion.

Baron Discovery Fund made the following comment about Mercury Systems, Inc. (NASDAQ:MRCY) in its Q1 2023 investor letter:

“We reduced our investment in Mercury Systems, Inc. (NASDAQ:MRCY) as it ran up on news that it was working with its Board of Directors to look at a potential sale of the company or other strategic alternatives.”

Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of the fourth quarter which was 15 in the previous quarter.

We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.