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 FactSet Research Systems Inc. (NYSE: FDS) and discussed its stance on the firm. FactSet Research Systems Inc. is a Norwalk, Connecticut-based financial data and software company with a $16.1 billion market capitalization. FDS delivered a -12.12% return since the beginning of the year, while its 12-month returns are up by 34.23%. The stock closed at $427.11 per share on January 17, 2022.
Here is what Baron Asset Fund has to say about FactSet Research Systems Inc. in its Q4 2021 investor letter:
“The Fund’s Financials holdings appreciated by double-digit percentages, with investment management tools provider FactSet Research Systems, Inc. FactSet’s shares rose on strong quarterly earnings with accelerating revenue growth and optimism about its pipeline of future business deals. The company also announced the accretive acquisition of CUSIP Global Services, which we view as a prudent use of capital.
Shares of FactSet Research Systems, Inc., a leading provider of investment management tools, contributed to performance. The company reported strong earnings with accelerating revenue growth and expressed confidence in its sales pipeline. FactSet also announced the acquisition of CUSIP Global Services, an accretive deal that we view as a smart use of capital. We remain optimistic about FactSet because of the company’s large addressable market, consistent execution on both new product development and financial results, and robust free cash flow generation.”
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Our calculations show that FactSet Research Systems Inc. (NYSE: FDS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FDS was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 28 funds in the previous quarter. FactSet Research Systems Inc. (NYSE: FDS) delivered a 2.95% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on FDS 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.
