Weaker Global Demand Impacted Suzano S.A. (SUZ) in Q1

Baron Funds, an investment management company, released its “Baron Emerging Markets Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund gained 2.68% (Institutional Shares), compared to a 3.96% return for its principal benchmark, the MSCI EM Index, and a 4.27% return for the MSCI EM IMI Growth Index. High volatility and swings in sentiment and leadership drove the fund to modestly underperform the core benchmark and the all-cap growth proxy in the period. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Emerging Markets Fund highlighted stocks like Suzano S.A. (NYSE:SUZ) in the first quarter 2023 investor letter. Headquartered in Salvador, Brazil, Suzano S.A. (NYSE:SUZ) is a pulp and paper products manufacturer. On June 23, 2023, Suzano S.A. (NYSE:SUZ) stock closed at $9.55 per share. One-month return of Suzano S.A. (NYSE:SUZ) was 5.18%, and its shares gained 2.14% of their value over the last 52 weeks. Suzano S.A. (NYSE:SUZ) has a market capitalization of $12.491 billion.

Baron Emerging Markets Fund made the following comment about Suzano S.A. (NYSE:SUZ) in its first quarter 2023 investor letter:

“Suzano S.A. (NYSE:SUZ) is the world’s largest and lowest-cost producer of pulp, which is primarily used in paper, tissue, and packaging. Shares declined due to falling pulp prices as a result of weaker global demand. We retain conviction. Suzano is expanding into new, higher-margin markets for pulp with fossil-to-fiber substitution for textile, plastics, fuels, and chemicals. Suzano’s pulp production removes more greenhouse gas emissions from the atmosphere than it emits. Its goal is to remove 40 million tons of CO2 over the next five years, and we see an opportunity for the company to monetize these carbon credits. In addition to our positive view on pulp prices, we expect sustainability/ESG factors to drive multiple positive re-ratings for Suzano.”

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Suzano S.A. (NYSE:SUZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Suzano S.A. (NYSE:SUZ) at the end of first quarter 2023 which was 9 in the previous quarter. 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.