Is it Time to Sell SoFi Technologies (SOFI)?

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 SoFi Technologies, Inc. (NASDAQ: SOFI) and discussed its stance on the firm. SoFi Technologies, Inc. is a San Francisco, California-based personal finance company with a $13.1 billion market capitalization. SOFI delivered a 32.07% return since the beginning of the year, while its 12-month returns are up by 57.68%. The stock closed at $16.43 per share on December 02, 2021.

Here is what Baron FinTech Fund has to say about SoFi Technologies, Inc.  in its Q3 2021 investor letter:

“Adverse stock selection in Financials, owing largely to share price declines for online personal finance company SoFi Technologies, Inc., was partly offset by the Fund’s high exposure to this top-performing sector. Despite reporting solid quarterly results, SoFi’s stock pulled back after management failed to raise guidance.”

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Based on our calculations, SoFi Technologies, Inc. (NASDAQ: SOFI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SOFI was in 33 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. SoFi Technologies, Inc. (NASDAQ: SOFI) delivered a 9.10% return in the past 3 months.

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