Here’s Why Baron Funds Decided to Sell its Paya Holdings Inc (PAYA) Position

Baron Funds, an asset management firm, published its “Baron FinTech Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.53% was delivered by the fund’s institutional shares for the fourth quarter of 2021, compared to its benchmarks, the S&P 500 Index, which appreciated 11.03%, and the FactSet Global FinTech Index which rose 7.68% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron FinTech Fund, in its Q4 2021 investor letter, mentioned Paya Holdings Inc. (NASDAQ:PAYA) and discussed its stance on the firm. Founded in 2006, Paya Holdings Inc. (NASDAQ:PAYA) is an Atlanta, Georgia-based integrated payment and frictionless commerce solutions provider with a $675.9 million market capitalization, and is currently spearheaded by its CEO, Jeff Hack. Paya Holdings Inc. (NASDAQ:PAYA) delivered a -19.24% return since the beginning of the year, while its 12-month returns are down by -59.78%. The stock closed at $5.12 per share on March 15, 2022.

Here is what Baron FinTech Fund has to say about Paya Holdings Inc. (NASDAQ:PAYA) in its Q4 2021 investor letter:

“During the quarter, the Fund initiated three new positions and exited five positions. Below we discuss some of our top net purchases and sales. We also sold our small position in Paya Holdings Inc. where we had less conviction in their competitive positioning and growth trajectories to allocate capital to higher-conviction ideas elsewhere in the Fund.”

Our calculations show that Paya Holdings Inc. (NASDAQ:PAYA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Paya Holdings Inc. (NASDAQ:PAYA) was in 10 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 9 funds in the previous quarter. Paya Holdings Inc. (NASDAQ:PAYA) delivered a -22.54% return in the past 3 months. 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.