Is it Wise to Invest in RingCentral (RNG)?

Baron Funds, an asset management firm, published its “Baron Partners Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. An increase of 19.54% was delivered by the fund’s institutional shares for the fourth quarter of 2021, outperforming the Russell Midcap Growth Index which gained 2.85%  for the same period. The S&P 500 Index rose 11.03% while the Morningstar Large Growth Category (the “Peer Group”) Average increased 6.91%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Partners Fund, in its Q4 2021 investor letter, mentioned  RingCentral, Inc. (NYSE:RNG) and discussed its stance on the firm. Founded in 1999, RingCentral, Inc. (NYSE:RNG) is a Belmont, California-based cloud communications solutions provider with a $10.2 billion market capitalization, and is currently spearheaded by its CEO, Vlad Shmunis. RingCentral, Inc. (NYSE:RNG) delivered a -42.47% return since the beginning of the year, while its 12-month returns are down by -66.94%. The stock closed at $107.79 per share on March 16, 2022.

Here is what Baron Partners Fund has to say about RingCentral, Inc. (NYSE:RNG) in its Q4 2021 investor letter:

“Shares of RingCentral, Inc., a provider of global enterprise cloud communications and collaboration software, declined due to concerns about competition as well as general weakness in software due to sector rotation. RingCentral posted another outstanding quarter, with accelerated revenue growth year-over-year for the third straight quarter and strong demand for its key metric subscription software. Fundamentals remain strong, and valuation seems attractive.”

Our calculations show that RingCentral, Inc. (NYSE:RNG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RingCentral, Inc. (NYSE:RNG) was in 47 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 48 funds in the previous quarter. RingCentral, Inc. (NYSE:RNG) delivered a -40.76% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on RingCentral, Inc. (NYSE:RNG) 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.