Here’s Why Baron Funds Disposed its Farfetch (FTCH) Position

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned Farfetch Limited (NYSE:FTCH) and explained its insights for the company. Founded in 2007, Farfetch Limited (NYSE:FTCH) is a London, United Kingdom-based luxury fashion industry with a $3.2 billion market capitalization. Farfetch Limited (NYSE:FTCH) delivered a -74.75% return since the beginning of the year, while its 12-month returns are down by -79.01%. The stock closed at $8.44 per share on May 16, 2022.

Here is what Baron Asset Fund has to say about Farfetch Limited (NYSE:FTCH) in its Q1 2022 investor letter:

“We sold our stake in Farfetch Limited (NYSE:FTCH), a global luxury e-commerce platform, over concerns that its business in China, a key market for luxury goods, will be permanently impaired by changing governmental policies in that country.”

Pixabay/Public Domain

Our calculations show that Farfetch Limited (NYSE:FTCH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Farfetch Limited (NYSE:FTCH) was in 47 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 51 funds in the previous quarter. Farfetch Limited (NYSE:FTCH) delivered a -55.63% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Farfetch Limited (NYSE:FTCH) in another article. 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.