Here’s Why Baron Funds Chose to Keep its Nuvei (NVEI) Shares

Baron Funds, an asset management firm, published its “Baron Global Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Global Advantage Fund (the “Fund”) declined 22.8% (Institutional Shares), during the first quarter, compared to the 5.4% loss for the MSCI ACWI Index (the “Index”), and the 9.7% loss for the MSCI ACWI Growth Index, the Fund’s benchmarks. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Global Advantage Fund mentioned Nuvei Corporation (NASDAQ:NVEI) and explained its insights for the company. Founded in 2003, Nuvei Corporation (NASDAQ:NVEI)  is a Canada-based global payments technology company with an $8.1 billion market capitalization. Nuvei Corporation (NASDAQ:NVEI)  delivered a -12.43% return since the beginning of the year, while its 12-month returns are down by -17.27%. The stock closed at $56.90 per share on May 02, 2022.

Here is what Baron Global Advantage Fund has to say about Nuvei Corporation (NASDAQ:NVEI) in its Q1 2022 investor letter: 

“Nuvei Corporation is a Canadian-based payment processor that serves online merchants around the world. The stock rose 16% during the first quarter driven by continued strong financial results with revenues growing 83% year-over-year and 55% organically, while EBITDA margins were 43%. Nuvei also hosted an upbeat investor day, in which it reiterated its mediumterm goals of growing revenues organically above 30% with improving EBITDA margins. We continue to own the stock due to Nuvei’s numerous growth opportunities driven by growing e-commerce penetration, expansion into the U.S. market, accelerating investments in direct sales, and strong competitive advantages driven by its modular platform and land and expand business model.”

Our calculations show that Nuvei Corporation (NASDAQ:NVEI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Nuvei Corporation (NASDAQ:NVEI) was in 24 hedge fund portfolios at the end of the fourth quarter of 2021. Nuvei Corporation (NASDAQ:NVEI) delivered a -11.76% return in the past 3 months.

In October 2021, we published an article that includes Nuvei Corporation (NASDAQ:NVEI) in 11 Best High Dividend Stocks Under $50. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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