Baron Funds, an asset management firm, published its “Baron Asset Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Against this backdrop, Baron Asset Fund (the “Fund”) gained 5.04% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) gained 2.85%, and the S&P 500 Index gained 11.03%. The Fund’s outperformance was attributable to favorable stock selection and tailwinds from certain style biases, notably its underexposure to the poor performing residual volatility and beta factors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Baron Asset Fund, in its Q4 2021 investor letter, mentioned Pinterest, Inc. (NYSE: PINS) and discussed its stance on the firm. Pinterest, Inc. is a San Francisco, California-based technology company with a $20.8 billion market capitalization. PINS delivered a -12.10% return since the beginning of the year, while its 12-month returns are down by -56.54%. The stock closed at $31.95 per share on January 20, 2022.
Here is what Baron Asset Fund has to say about Pinterest, Inc. in its Q4 2021 investor letter:
“As of December 31, 2021, Baron Asset Fund held 65 positions. The Fund’s 10 largest holdings represented 42.0% of assets, and the 20 largest represented 64.3% of assets. The Fund’s largest weighting was in the IT sector at 31.1% of assets. This sector includes software companies, IT consulting firms, internet services companies, technology distributors, and data processing firms. The Fund held 26.5% of its assets in the Health Care sector, which includes investments in life sciences companies, and health care equipment, technology, and supplies companies. The Fund held 14.7% of its assets in the Industrials sector, which includes investments in research and consulting companies, industrial conglomerates, and machinery companies. The Fund also had significant weightings in Financials at 11.3% of assets and Consumer Discretionary at 7.7% of assets. We also sold Pinterest, Inc., a social media network, because of concerns about the sustainability of its long-term growth rate.”
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Our calculations show that Pinterest, Inc. (NYSE: PINS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. PINS was in 58 hedge fund portfolios at the end of the third quarter of 2021, compared to 63 funds in the previous quarter. Pinterest, Inc. (NYSE: PINS) delivered a -47.92% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on PINS in another article. 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.
