Is Nova Ltd. (NVMI) A Smart Long-Term Buy?

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned Nova Ltd. (NASDAQ: NVMI) and discussed its stance on the firm. Nova Ltd. is a Rehovot, Israel-based semiconductor company with a $3.4 billion market capitalization. NVMI delivered a -18.16% return since the beginning of the year, while its 12-month returns are up by 51.01%. The stock closed at $119.90 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about Nova Ltd. in its Q4 2021 investor letter:

“Shares of Nova Ltd., a semiconductor equipment company focusing on the metrology (measurement) market, rose during the quarter as the company reported strong financial results and an accretive acquisition to expand its addressable market. Nova continues to benefit from the increasing complexity of semiconductor devices, which require new equipment to measure the chemical, materials, and physical properties of the chips, and increased capital spending by semiconductor manufacturers driven by strong end-market demand. The company leverages its research and development capabilities to deliver unique products to its customers that improve speed and quality and continues to take share in its existing and expansionary addressable markets.”

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Our calculations show that Nova Ltd. (NASDAQ: NVMI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NVMIwas in 22 hedge fund portfolios at the end of the third quarter of 2021, compared to 18 funds in the previous quarter. Nova Ltd. (NASDAQ: NVMI) delivered an 18.23% return in the past 3 months.

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.