Should You Be Confident in Mercury Systems’ (MRCY) New Management Team?

Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Discovery Fund featured stocks such as Mercury Systems, Inc. (NASDAQ:MRCY) in the fourth quarter 2023 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves defense and aerospace industries. On February 6, 2024, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $30.25 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was -6.81%, and its shares lost 44.20% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $1.793 billion.

Baron Discovery Fund stated the following regarding Mercury Systems, Inc. (NASDAQ:MRCY) in its fourth quarter 2023 investor letter:

“We added to our position in Mercury Systems, Inc. (NASDAQ:MRCY), the leading U.S. Tier 2 defense electronics manufacturer and integrator, as we are convinced that the new management team put in place in August 2023 has made meaningful progress in their turnaround efforts, and that shares remain meaningfully undervalued.”

A satellite in orbit, capturing the technological prowess of the aerospace & defense company.

Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of third quarter which was 26 in the previous quarter.

We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared the list of best American defense stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2023 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.