Here’s Why Baron Funds Exited its GDS Holdings (GDS) Position

Baron Funds, an asset management firm, published its “Baron Asset Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 0.14% was delivered by the fund’s institutional shares for the third quarter of 2021, while the Russell Midcap Growth Index (the “Index”) declined 0.76%, and the S&P 500 Index gained 0.58%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Asset Fund, in its Q3 2021 investor letter, mentioned GDS Holdings Limited (NASDAQ: GDS) and discussed its stance on the firm. GDS Holdings Limited is a China-based IT service management company with an $11.2 billion market capitalization. GDS delivered a -36.48% return since the beginning of the year, while its 12-month returns are down by -32.33%. The stock closed at $59.48 per share on November 17, 2021.

Here is what Baron Asset Fund has to say about GDS Holdings Limited  in its Q3 2021 investor letter:

GDS Holdings Limited is a leading data center operator focused on Tier 1 Chinese cities. Its shares fell in concert with a widespread sell-off in Chinese technology-related companies. This occurred in response to tightening regulations against businesses that may not be perceived as aligned with the Chinese government’s goals. Given the uncertainty about future governmental actions, we exited our position.”

Based on our calculations, GDS Holdings Limited (NASDAQ: GDS) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. GDS was in 38 hedge fund portfolios at the end of the first half of 2021, compared to 40 funds in the previous quarter. GDS Holdings Limited (NASDAQ: GDS) delivered an 18.25% return in the past 3 months.

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