Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 9.44% up in the first quarter outperforming the Russell 2000 Growth Index and the S&P 500 Index which returned 6.07% and 7.50% respectively. During the quarter, the fund benefitted from positive stock selection in almost all sectors on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Small Cap Fund highlighted stocks like The Liberty SiriusXM Group (NASDAQ:LSXMA) in the first quarter 2023 investor letter. Based in Englewood, Colorado, The Liberty SiriusXM Group (NASDAQ:LSXMA) engages in the entertainment business. On June 12, 2023, The Liberty SiriusXM Group (NASDAQ:LSXMA) stock closed at $30.10 per share. One-month return of The Liberty SiriusXM Group (NASDAQ:LSXMA) was 8.20%, and its shares lost 17.03% of their value over the last 52 weeks. The Liberty SiriusXM Group (NASDAQ:LSXMA) has a market capitalization of $9.813 billion.
Baron Small Cap Fund made the following comment about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its first quarter 2023 investor letter:
“The Liberty SiriusXM Group (NASDAQ:LSXMA) consists of Liberty Media Corporation’s majority interest in Sirius XM Holdings, Inc. SiriusXM is a large U.S. commercial-free subscription-based music service. Shares were down this quarter on 2023 guidance that missed analyst estimates and continued investor uncertainty around advertising revenue given unclear macroeconomic conditions. The company expects FCF to fall by about a third this year, as it spends on satellite launches and platform rebuilds, while revenues face headwinds of slow auto sales and soft advertising. The company is focused on building its streaming only service, but growth and profitability of that offering is uncertain. Standalone Sirius shares now trade at a low multiple, and the Liberty Sirius shares trade at a steep discount to that. Liberty Media Corporation continues to increase its percentage ownership and, ultimately, we expect some change in corporate structure, which we think would benefit shareholders.”
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The Liberty SiriusXM Group (NASDAQ:LSXMA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held The Liberty SiriusXM Group (NASDAQ:LSXMA) at the end of the first quarter 2023 which was 42 in the previous quarter.
We discussed The Liberty SiriusXM Group (NASDAQ:LSXMA) in another article and shared Third Avenue Small-Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
