Multiple Reasons for the Decline of CI&T (CINT) in Q4

Baron Funds, an investment management company, released its “Baron FinTech Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund gained 4.98% (Institutional Shares) compared to a 7.56% gain for the S&P 500 benchmark index and a 3.91% return for the FactSet Global FinTech Index. Favorable stock selection in Information Services, Payments, and Capital Markets contributed to the gains of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron FinTech Fund highlighted stocks like CI&T Inc (NYSE:CINT) in its Q4 2022 investor letter. Headquartered in Campinas, Brazil, CI&T Inc (NYSE:CINT) is a strategy, design, and software engineering services provider to enable digital transformation. On February 17, 2023, CI&T Inc (NYSE:CINT) stock closed at $5.81 per share. One-month return of CI&T Inc (NYSE:CINT) was -27.01%, and its shares lost 60.34% of their value over the last 52 weeks. CI&T Inc (NYSE:CINT) has a market capitalization of $776.431 million.

Baron FinTech Fund made the following comment about CI&T Inc (NYSE:CINT) in its Q4 2022 investor letter:

CI&T Inc (NYSE:CINT) Inc provides consulting and outsourced software development for business customers using delivery resources primarily in Brazil. Shares fell despite robust quarterly results, with 49% revenue growth, 34% EBITDA growth, and 131% EPS growth along with a hike in full-year guidance. The share price decline was likely due to volatility from low trading liquidity as well as investor concerns about macroeconomic uncertainty potentially weighing on client demand. We continue to own the stock because we believe CI&T will continue growing rapidly in a large global market for IT services.”

CI&T Inc (NYSE:CINT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held CI&T Inc (NYSE:CINT) at the end of the third quarter, which was 3 in the previous quarter. 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.