Here’s Why Baron Funds Sold its Fiverr International Ltd. (FVRR) Position

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.67% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing the S&P 500 Index, which appreciated 6.17%, and modestly underperforming the Russell 2000 Growth Index which rose 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Small Cap Fund, in its Q1 2021 investor letter, mentioned Fiverr International Ltd. (NYSE: FVRR), and shared their insights on the company. Fiverr International Ltd. is a Tel Aviv-Yafo, Israel-based freelance services marketplace that currently has a $6.08 billion market capitalization. Since the beginning of the year, FVRR delivered a -13.02% return, while its 12-month gains are up by 186.90%. As of May 14, 2021, the stock closed at $169.70 per share.

Here is what Baron Small Cap Fund has to say about Fiverr International Ltd. in its Q1 2021 investor letter:

“We sold out of Fiverr International Ltd., the marketplace for freelance services, since the stock ran up multiple fold since our purchase less than a year ago and traded at a valuation that we thought captured much of the future opportunity.”

freelance, work


Our calculations show that Fiverr International Ltd. (NYSE: FVRR) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Fiverr International Ltd. was in 29 hedge fund portfolios, compared to 30 funds in the third quarter. FVRR delivered a -47.48% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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