Should You Consider Buying Nuvei Corp. (NVEI) Shares?

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 4.69% was delivered by the fund’s institutional shares for the fourth quarter of 2021 and 15.84% for the year. This well exceeded the returns of the Russell 2000 Growth Index (the “Index”), which was flat in the fourth quarter and up 2.83% for the year. This was a quarter and a year where small-cap stocks did worse than large caps. The S&P 500 Index gained 11.03% in the quarter and 28.71% for the year. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Small Cap Fund, in its Q4 2021 investor letter, mentioned Nuvei Corporation (NASDAQ: NVEI) and discussed its stance on the firm. Nuvei Corporation is a Canada-based electronic payment processing company with an $8.9 billion market capitalization. NVEI delivered a -4.14% return since the beginning of the year, while its 12-month returns are up by 0.47%. The stock closed at $62.29 per share on February 11, 2022.

Here is what Baron Small Cap Fund has to say about Nuvei Corporation in its Q4 2021 investor letter:

“Nuvei Corporation provides payment processing services for online merchants around the world. The shares fell sharply following a short seller report that raised questions about management’s background, the company’s acquisitions, and the stock’s valuation. Management provided a detailed rebuttal to the report and reaffirmed guidance and its mediumterm targets. Generally, we think the report was a hatchet job, and a welltimed one at that, as the stocks of many payment companies were under pressure in the quarter.”

Photo by Vitaly Taranov on Unsplash

Our calculations show that Nuvei Corporation (NASDAQ: NVEI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Nuvei Corporation (NASDAQ: NVEI) delivered a -41.79% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.