Baron Funds, an investment management firm, released its “Baron Technology Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the second quarter, the Baron Technology Fund® experienced a 3.89% decline in its Institutional Shares. Despite this decrease, it outperformed the MSCI ACWI Information Technology Index, which saw a steeper decline of 6.16%. However, the Fund slightly underperformed the broader S&P 500 Index, which exhibited a 3.27% decline. Looking at the year-to-date period, the Fund has shown a positive return of 37.34%, surpassing both indexes. The MSCI ACWI Information Technology Index yielded 28.47% while the S&P 500 returned 13.07%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Baron Technology Fund mentioned HubSpot, Inc. (NYSE:HUBS) and explained its insights for the company. HubSpot, Inc. (NYSE:HUBS) is a Cambridge, Massachusetts-based software products developer and marketer with a $21.0 billion market capitalization. HubSpot, Inc. (NYSE:HUBS) delivered a 45.44% return since the beginning of the year, while its 12-month returns are up by 61.53%. The stock closed at $420.50 per share on November 6, 2023.
Here is what Baron Technology Fund has to say about HubSpot, Inc. (NYSE:HUBS) in its Q3 2023 investor letter:
“”Despite near-term macro uncertainty, it’s important to frame that we find ourselves in the early innings of both the AI investment cycle and overall cloud penetration. We estimate cloud penetration to be between 25% and 30% versus the likely 70% to 75% level over time, if not even higher. AI deployments are literally just getting off the ground.Infrastructure and development platforms for securely storing and curating data, training and fine-tuning large-language and other AI models, and developing and delivering AI applications. Beneficiaries include Microsoft Azure and Amazon Web Services. Integration of generative AI capabilities, such as AI agents and copilots, directly into existing product offerings and customer workflows. Software vendors capitalizing on this opportunity includes HubSpot, Inc.“
A close up of a busy software developer in front of several computer screens.
Our calculations show that HubSpot, Inc. (NYSE:HUBS) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. HubSpot, Inc. (NYSE:HUBS) was in 57 hedge fund portfolios at the end of the second quarter of 2023, compared to 54 funds in the previous quarter. HubSpot, Inc. (NYSE:HUBS) delivered a -14.91% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
