Here’s Why Baron Fifth Avenue Growth Fund Continue to Hold Shopify (SHOP)

Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund declined 7.1% (Institutional Shares) compared to a 2.2% gain for the Russell 1000 Growth Index and a 7.6% gain for the S&P 500 Index. For the year 2022, the fund declined 50.5% compared to 29.1% and 18.1% respectively for the benchmarks. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Fifth Avenue Growth Fund highlighted stocks like Shopify Inc. (NYSE:SHOP) in the Q4 2022 investor letter. Headquartered in Ottawa, Canada, Shopify Inc. (NYSE:SHOP) is a commerce platform and services provider. On March 3, 2023, Shopify Inc. (NYSE:SHOP) stock closed at $43.40 per share. One-month return of Shopify Inc. (NYSE:SHOP) was -15.84%, and its shares lost 22.61% of their value over the last 52 weeks. Shopify Inc. (NYSE:SHOP) has a market capitalization of $55.404 billion.

Baron Fifth Avenue Growth Fund made the following comment about Shopify Inc. (NYSE:SHOP) in its Q4 2022 investor letter:

Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 28.6% in the fourth quarter, reversing some of the declines from earlier in the year, as preliminary holiday results suggested a rebound in e-commerce activity. The company also reported solid third quarter financial results showing an increase in take rates, which points to a deeper adoption of its platform by merchants. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth (it has less than 2% share of global commerce spending).”

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Shopify Inc. (NYSE:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Shopify Inc. (NYSE:SHOP)at the end of the fourth quarter which was 62 in the previous quarter.

We discussed Shopify Inc. (NYSE:SHOP) in another article and shared the list of best short-term stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.