Here’s Why Baron Funds Chose to Exit its Nerdy (NRDY) Position

Baron Funds, an asset management firm, published its “Baron Opportunity Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. An increase of 3.16% was delivered by the fund’s institutional shares for the fourth quarter of 2021 but trailed the Russell 3000 Growth Index, which increased 10.89%, and the S&P 500 Index, which climbed 11.03%. For the full year 2021, the Fund gained 12.29% but underperformed the two indexes, which advanced 25.85% and 28.71%, respectively Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Opportunity Fund, in its Q4 2021 investor letter, mentioned Nerdy, Inc. (NYSE:NRDY) and discussed its stance on the firm. Founded in 2007, Nerdy, Inc. (NYSE:NRDY) is a Missouri-based educational services provider with a $373.4 million market capitalization and is currently spearheaded by its CEO, Chuck Cohn. Nerdy, Inc. (NYSE:NRDY) delivered a -1.11% return since the beginning of the year, while its 12-month returns are down by -56.07%. The stock closed at $4.45 per share on March 18, 2022.

Here is what Baron Opportunity Fund has to say about Nerdy, Inc. (NYSE:NRDY) in its Q4 2021 investor letter:

“Nerdy Inc. operates a digital learning platform in the U.S. that provides live online tutoring in multiple formats, including one-on-one and small-to-large groups. The offering includes K-12 courses, college, professional, GMAT, SAT, and other prep. Though bookings for future classes remained healthy, many sessions were delayed from the fourth quarter as families opted to take longer holiday trips and kids resumed afterschool activities, making it more difficult to schedule tutoring, resulting in weaker-than-projected recognized revenues. Given near-term uncertainty, a short-term tax loss, and other investment opportunities, we chose to exit the position.”

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Our calculations show that Nerdy, Inc. (NYSE:NRDY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Nerdy, Inc. (NYSE:NRDY) was in 30 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 22 funds in the previous quarter. Nerdy, Inc. (NYSE:NRDY) delivered a -11.53% return in the past 3 months.

In December 2021, we also shared Baron Fund’s Q3 2021 views on Nerdy, Inc. (NYSE:NRDY) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.