Baron Funds, an asset management firm, published its “Baron Small Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 1.32% was delivered by the fund’s institutional shares for the third quarter of 2021. For the first nine months of the year, the Fund is up 10.65%. The Fund soundly beat the performance of the Russell 2000 Growth Index (the “Index”) in the quarter, which was down 5.65%, and for the year, with the Index up just 2.82%. The S&P 500 was up 0.58% for the quarter and is up 15.92% for the year, as large-cap stocks have outpaced small caps this year. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Baron Small Cap Fund, in its Q3 2021 investor letter, mentioned Clarivate Plc (NYSE: CLVT) and discussed its stance on the firm. Clarivate Plc is a London, United Kingdom-based public analytics company with a $16.7 billion market capitalization. CLVT delivered a -17.70% return since the beginning of the year, while its 12-month returns are up by -16.67%. The stock closed at $24.45 per share on December 09, 2021.
Here is what Baron Small Cap Fund has to say about Clarivate Plc in its Q3 2021 investor letter:
“Clarivate Plc is an information services company that maintains leading/ comprehensive IP and scientific databases and sells data, tools, and services to health care and other industries. The company reported a deceleration in subscription growth and slower-than-expected organic growth in the second quarter. Management, who we greatly admire for how they have assembled and run this leading company and one before, has laid out aggressive growth targets, which investors are now concerned about even though those projections were reiterated. Also, the company received a second request from the Federal Trade Commission related to a large acquisition, which has delayed approval. This is causing near-term dilution, as the funds to close the transaction have already been raised. We retain our conviction that the company can achieve its growth objectives and would expect the multiple to recover as they prove so.”
Photo by Scott Graham on Unsplash
Based on our calculations, Clarivate Plc (NYSE: CLVT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CLVT was in 32 hedge fund portfolios at the end of the third quarter of 2021, compared to 41 funds in the previous quarter. Clarivate Plc (NYSE: CLVT) delivered a -7.32% return in the past 3 months.
Just last year, we also shared another hedge fund’s views on CLVT in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
