Is Fair Isaac Corporation (FICO) A Great Investment?

Baron Funds, an asset management firm, published its “Baron FinTech Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.65% was delivered by the fund’s institutional shares for the third quarter of 2021, compared to the S&P 500 Index, which appreciated 0.58%, and the FactSet Global FinTech Index which rose 3.72% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron FinTech Fund, in its Q3 2021 investor letter, mentioned Fair Isaac Corporation (NYSE: FICO) and discussed its stance on the firm. data analytics company is a San Jose, California-based data analytics company with a $10.41 billion market capitalization. FICO delivered a -25.53% return since the beginning of the year, while its 12-month returns are down by -21.30%. The stock closed at $380.55 per share on December 02, 2021.

Here is what Baron FinTech Fund has to say about Fair Isaac Corporation  in its Q3 2021 investor letter:

“Shares of Fair Isaac Corporation, a data and analytics company focused on predicting consumer behavior, detracted from performance. Fair Isaac reported solid earnings, but the stock pulled back following some press reports about a client abandoning the company’s FICO Score. Management believes this was a one-off customer loss, which happened over a year ago with no perceptible impact on revenue. We believe Fair Isaac will be a steady earnings grower, which should drive solid returns for the stock over a multi-year period.”

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Based on our calculations, Fair Isaac Corporation (NYSE: FICO) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. FICO was in 37 hedge fund portfolios at the end of the third quarter of 2021, compared to 28 funds in the previous quarter. Fair Isaac Corporation (NYSE: FICO) delivered a -19.37% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.