Here’s Why You Should Remain Optimistic in SmartRent (SMRT)

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned SmartRent, Inc. (NASDAQ: SMRT) and discussed its stance on the firm. SmartRent, Inc. is a Scottsdale, Arizona-based enterprise smart home automation company with a $1.4 billion market capitalization. SMRT delivered a -26.55% since the beginning of the year and it closed at $7.58 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about SmartRent, Inc. in its Q4 2021 investor letter:

“Many of our portfolio companies have been impacted by the wellpublicized problems in the global supply chain. It is our belief that as we move through 2022, we will see many of these issues be resolved. As a result, we expect the companies that were negatively impacted to restore their normalized growth trajectories. Portfolio companies that will benefit include SmartRent, Inc., an enterprise smart home automation company that can accelerate revenue growth when it has greater access to electronic equipment that is currently in short supply.”

Our calculations show that SmartRent, Inc. (NASDAQ: SMRT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SMRT was in 15 hedge fund portfolios at the end of the third quarter of 2021. SmartRent, Inc. (NASDAQ: SMRT) delivered a -36.99% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on SMRT 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.