Here’s Why Baron Funds Remains Invested in Shopify (SHOP)

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned Shopify Inc. (NYSE:SHOP) and explained its insights for the company. Founded in 2006, Shopify Inc. (NYSE:SHOP) is an Ottawa, Canada-based multinational e-commerce company with a $37.8 billion market capitalization. Shopify Inc. (NYSE:SHOP) delivered a -78.34% return since the beginning of the year, while its 12-month returns are down by -80.80%. The stock closed at $29.84 per share on September 06, 2022.

Here is what Baron Fintech Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q2 2022 investor letter: 

“Shopify Inc. is a cloud-based software provider offering an operating system for multi-channel commerce. Shares fell due to continued post-pandemic e-commerce normalization as economies reopen, concerns about competition following Amazon’s announcement of Buy with Prime, as well as the broader sell-off in growth stocks. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend.”

Photo by Roberto Cortese on Unsplash

Our calculations show that Shopify Inc. (NYSE:SHOP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Shopify Inc. (NYSE:SHOP) was in 60 hedge fund portfolios at the end of the second quarter of 2022, compared to 72 funds in the previous quarter. Shopify Inc. (NYSE:SHOP) delivered a -17.25% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Shopify Inc. (NYSE:SHOP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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