Baron Funds, an investment management company, released the “Baron Focused Growth Fund” in the third quarter 2022 investor letter. A copy of it can be downloaded here. In the third quarter, the fund rose 2.18% (Institutional Shares), compared to a 0.12% decline for the Russell 2500 Growth Index and a 4.88% decline for the S&P 500 Index. In addition, please review the fund’s top five holdings to find out its best picks in 2022.
Baron Funds discussed stocks such as FactSet Research Systems Inc. (NYSE:FDS) in the Q3 2022 investor letter. Headquartered in Norwalk, Connecticut, FactSet Research Systems Inc. (NYSE:FDS) is a software company that provides financial data and market analytics. On November 2, 2022, the stock of FactSet Research Systems Inc. (NYSE:FDS) closed at $415.26 per share. The one-month return of FactSet Research Systems Inc. (NYSE:FDS) is -0.95% and its shares have lost 6.38% of their value over the past 52 weeks. FactSet Research Systems Inc. (NYSE:FDS) has a market capitalization of $15.821 billion.
Baron Funds made the following comment about FactSet Research Systems Inc. (NYSE:FDS) in its Q3 2022 investor letter:
“FactSet Research Systems Inc. (NYSE:FDS), a financial intelligence provider to the investment community, rose 4.1% in the quarter and helped outperform the period by 18 bps. FactSet shares rose as the company’s revenue growth accelerated with improved margins, while recent investments continued to generate strong returns. FactSet’s revenue growth has been accelerated by the introduction of new tools, which the company has begun selling to new and existing clients. This has led to increased pricing power and new use cases without any change in retention rates. We expect further revenue and earnings growth in 2022 and beyond, as well as improved cash flow from its recent acquisition of CUSIP. FactSet will likely use its increased cash flow for additional acquisitions and share repurchases. FactSet’s prospects remain favorable due to its large addressable market, strong expertise in financial technology, and consistent execution in both new product development and financial results.
Shares of FactSet Research Systems, Inc., a leading provider of investment management tools, contributed to the performance. While some investors may be looking for slightly greater margin expansion, the company overall continues to perform well, and earnings have shown strong revenue growth. We remain confident in FactSet due to its large addressable market, consistent execution in both new product development and financial results, and solid free cash flow generation.”
Speedcurve Performance Analytics
FactSet Research Systems Inc. (NYSE:FDS) was not on our list of the 30 Most Popular Stocks in Hedge Funds. According to our database, 30 hedge fund portfolios are held at FactSet Research Systems Inc. (NYSE:FDS) at the end of the second quarter which was 34 last quarter.
We discussed FactSet Research Systems Inc. (NYSE:FDS) in another article and shared the list of dividend-paying stocks you should avoid according to Morgan Stanley’s quant screen. In addition, please see our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.