Baron Funds, an investment management company, released its “Baron Opportunity Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund declined 4.54% (Institutional Shares) compared to a 2.31% return for the Russell 3000 Growth Index and a 7.56% return for the S&P 500 Index. For the one-year period, the fund fell sharply trailing both indexes. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Opportunity Fund highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA) in the Q4 2022 investor letter. Headquartered in Santa Clara, California, NVIDIA Corporation (NASDAQ:NVDA) is a graphics, and compute and networking solutions provider. On February 28, 2023, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $232.16 per share. One-month return of NVIDIA Corporation (NASDAQ:NVDA) was 10.85%, and its shares lost 4.15% of their value over the last 52 weeks. NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $578.543 billion.
Baron Opportunity Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2022 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor mega cap that is a global leader in gaming cards and accelerated computing hardware and software. Despite the ongoing inventory correction in gaming, shares rose over 20% during the fourth quarter because of continued resilience in the company’s data center segment, which beat expectations and grew more than 30% year-over-year, driven by robust demand for accelerating computing graphic processing units (GPUs) to power data-intensive, AI, and cloud workloads. Along these lines, the company announced an agreement with Microsoft and Oracle, in which it will go to market together with these cloud providers, getting a revenue share for the usage by Microsoft/Oracle end customers of NVIDIA GPUs in the cloud as well as NVIDIA’s AI Enterprise software suite as a service. This strategic announcement should both reduce hurdles for AI adoption in vertical industries as well as drive incremental usage-based, high-margin revenues for NVIDIA. In addition, OpenAI’s ChatGPT uses NVIDIA GPUs to train its models and runs on NVDIA GPUs in the Microsoft Azure cloud to provide its answers. We continue to believe that NVIDIA’s end-to-end AI platform – both GPUs and increasingly highmargin software – and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, will enable the company to grow faster-for-longer for years to come.”
Photo by Christian Wiediger on Unsplash
NVIDIA Corporation (NASDAQ:NVDA) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the fourth quarter which was 89 in the previous quarter.
We discussed NVIDIA Corporation (NASDAQ:NVDA) in another article and shared high growth NASDAQ stocks that are profitable. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
