Baron Funds, an asset management firm, published its “Baron Opportunity Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.88% was delivered by the fund’s institutional shares for the Q1 of 2021, below both its S&P 500 and Russell 3000 Growth Index that delivered a 6.17% and 1.19% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Opportunity Fund, in their Q1 2021 investor letter, mentioned Workday, Inc. (NASDAQ: WDAY), and shared their insights on the company. Workday, Inc. is a Pleasanton, California-based software company that currently has a $60.2 billion market capitalization. Since the beginning of the year, WDAY delivered a 3.08% return, extending its 12-month gains to 66.36%. As of April 30, 2021, the stock closed at $247.00 per share.
Here is what Baron Opportunity Fund has to say about Workday, Inc. in their Q1 2021 investor letter:
“Workday, Inc. is the undisputed market leader in human capital management (“HCM”) cloud software, with adoption of its financial management solutions steadily ramping. With about half of the Fortune 500 as HCM customers, Workday is the 800-pound gorilla in the space. Workday has evolved and expanded its financial management product strategy over the past few years, including the addition of planning, procurement, and analytics to its suite, as well as the recent introduction of Accounting Center. This versatile product suite has positively impacted Workday’s ability to penetrate HCM customers with elements of its broader set of financial management solutions. At about 20% to 30% of its revenue mix today, growth in the financial management segment will be the key driver for the next five years to help Workday sustain, or even accelerate, the overall growth of the company and drive substantial operating leverage.”
Our calculations show that Workday, Inc. (NASDAQ: WDAY) ranks 25th in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Workday, Inc. was in 80 hedge fund portfolios, compared to 74 funds in the third quarter. WDAY delivered a 4.36% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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