Here’s Why You Should Keep Your Block (SQ) Shares

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 Block, Inc. (NYSE:SQ) and explained its insights for the company. Founded in 2009, Block, Inc. (NYSE:SQ) is a San Francisco-based mobile payment company with a $38.5 billion market capitalization. Block, Inc. (NYSE:SQ) delivered a -59.57% return since the beginning of the year, while its 12-month returns are down by -75.79%. The stock closed at $65.30 per share on September 06, 2022.

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

“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

Our calculations show that Block, Inc. (NYSE:SQ) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Block, Inc. (NYSE:SQ) was in 72 hedge fund portfolios at the end of the second quarter of 2022, compared to 84 funds in the previous quarter. Block, Inc. (NYSE:SQ) delivered a -21.68% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Block, Inc. (NYSE:SQ) 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.