Is it a Wise Choice to Invest in Iridium Communications (IRDM)?

Baron Funds, an asset management firm, published its “Baron Focused Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Focused Growth Fund (the “Fund”) declined 8.03% (Institutional Shares) in the quarter ended March 31, 2022. The Fund’s primary benchmark, the Russell 2500 Growth Index (the “Index”), fell 12.30% in the period. The S&P 500 Index, which measures the performance of large-cap companies, fell 4.60%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Focused Growth Fund mentioned Iridium Communications Inc. (NASDAQ:IRDM) and explained its insights for the company. Founded in 2001, Iridium Communications Inc. (NASDAQ:IRDM) is a McLean, Virginia-based global satellite communications company with a $4.6 billion market capitalization. Iridium Communications Inc. (NASDAQ:IRDM) delivered a -12.09% return since the beginning of the year, while its 12-month returns are down by -7.04%. The stock closed at $36.30 per share on June 15, 2022.

Here is what Baron Focused Growth Fund has to say about Iridium Communications Inc. (NASDAQ:IRDM) in its Q1 2022 investor letter:

“From 2014 through 2016, the Fund invested in several companies whose stocks underperformed while they were investing in their businesses to enable them to grow. Iridium Communications Inc. (NASDAQ:IRDM) was among those businesses. Its stock outperformed in 2020, 2021, and so far in 2022, as those investments has started generating strong returns. The company continue to invest in its busines and now that they are financially stronger, is even better able to finance investments while continuing to grow its core businesses.”

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Our calculations show that Iridium Communications Inc. (NASDAQ:IRDM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Iridium Communications Inc. (NASDAQ:IRDM) was in 26 hedge fund portfolios at the end of the first quarter of 2022, compared to 20 funds in the previous quarter. Iridium Communications Inc. (NASDAQ:IRDM) delivered a -8.86% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Iridium Communications Inc. (NASDAQ:IRDM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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