Baron Funds, an asset management firm, published its “Baron Global Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Global Advantage Fund (the “Fund”) declined 22.8% (Institutional Shares), during the first quarter, compared to the 5.4% loss for the MSCI ACWI Index (the “Index”), and the 9.7% loss for the MSCI ACWI Growth Index, the Fund’s benchmarks. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Baron Global Advantage Fund mentioned Datadog, Inc. (NASDAQ:DDOG) and explained its insights for the company. Founded in 2010, Datadog, Inc. (NASDAQ:DDOG) is a United States-based cloud applications monitoring platform with a $37.8 billion market capitalization. Datadog, Inc. (NASDAQ:DDOG) delivered a -32.51% return since the beginning of the year, while its 12-month returns are up by 49.93%. The stock closed at $120.20 per share on May 02, 2022.
Here is what Baron Global Advantage Fund has to say about Datadog, Inc. (NASDAQ:DDOG) in its Q1 2022 investor letter:
“Another example is Datadog, the leading infrastructure monitoring, application performance monitoring and log management software platform. Datadog’s stock declined 15% during the quarter, despite reporting sparkling operational results, with revenues accelerating to a growth rate of 84% year-over-year with 33% free cash flow margins, while guiding for 2022 significantly above expectations. Datadog added 4,600 new customers in the quarter, while existing customers continued to increase their spending on Datadog products at a rapid pace with the number of customers using four or more products increasing to 33% from 22% last year. While Datadog’s stock was down, its intrinsic value has undoubtedly increased. This is enabled by rapid innovation (Datadog released 13 new products in 2021) into a market that is benefiting from the secular growth in cloud, digital transformation, and the explosion in complexity as the number of vendors, diversity of technologies and related infrastructure continued to expand.”
Our calculations show that Datadog, Inc. (NASDAQ:DDOG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Datadog, Inc. (NASDAQ:DDOG) was in 73 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 62 funds in the previous quarter. Datadog, Inc. (NASDAQ:DDOG) delivered a -17.73% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Datadog, Inc. (NASDAQ:DDOG) 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.
