Is Morningstar (MORN) A Long-Term Worthy Investment?

Baron Funds, an asset management firm, published its “Baron Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.56% was delivered by the fund’s institutional shares for the fourth quarter of 2021 and 15.84% for the year. This exceeded the Fund’s primary benchmark, the Russell 2000 Growth Index (the “Benchmark”), which gained 0.01%. The S&P 500 Index, which measures the performance of publicly-traded large-cap U.S. companies, gained 11.03% during the period. For the full year, the Fund gained 20.15%, meaningfully exceeding its Benchmark, which gained 2.83%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Growth Fund, in its Q4 2021 investor letter, mentioned Morningstar, Inc. (NASDAQ: MORN) and discussed its stance on the firm. Morningstar, Inc. is a Chicago, Illinois-based financial services company with an $11.9 billion market capitalization. MORN delivered a -18.86% return since the beginning of the year, while its 12-month returns are up by 11.94%. The stock closed at $277.49 per share on February 14, 2022.

Here is what Baron Growth Fund has to say about Morningstar, Inc. in its Q4 2021 investor letter:

“Morningstar, Inc., a provider of independent investment research, contributed after reporting organic revenue growth above 18%. The company is seeing strong interest in multiple aspects of its data services. Additionally, it has attracted assets onto its investment management platform. We believe these favorable trends should continue as Morningstar continuously improves its offering and more clients and assets engage with its products.”

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Our calculations show that Morningstar, Inc. (NASDAQ: MORN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MORN was in 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 24 funds in the previous quarter. Morningstar, Inc. (NASDAQ: MORN) delivered a -11.86% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on MORN 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.