Baron Funds, an asset management firm, published its “Baron FinTech Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 1.29% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing the S&P 500 Index, which appreciated 6.17%, and modestly underperforming the FactSet Global FinTech Index which rose 2.77% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron FinTech Fund, in its Q1 2021 investor letter, mentioned TransUnion (NYSE: TRU), and shared their insights on the company. TransUnion is a Chicago, Illinois-based consumer credit reporting agency that currently has a $20.6 billion market capitalization. Since the beginning of the year, TRU delivered an 8.90% return, extending its 12-month gains to 42.89%. As of May 14, 2021, the stock closed at $108.05 per share.
Here is what Baron FinTech Fund has to say about TransUnion in its Q1 2021 investor letter:
“TransUnion is a consumer credit bureau that helps businesses make credit and marketing decisions. Earnings have been impacted by a slowdown in economic growth and financial marketing activity due to the pandemic. Shares declined after the company provided underwhelming 2021 guidance that suggests a more gradual recovery than investors were expecting. We believe this guidance is conservative and continue to own the stock because we expect TransUnion to continue gaining share while diversifying into attractive information services verticals.”
Our calculations show that TransUnion (NYSE: TRU) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, TransUnion was in 41 hedge fund portfolios, compared to 47 funds in the third quarter. TRU delivered a 13.67% return in the past 3 months.
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Disclosure: None. This article is originally published at Insider Monkey.