Baron Funds, an investment management company, released its “Baron Small Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 3.64% (Institutional Shares), underperforming the Russell 2000 Growth Index, which was 0.24% up, and outperforming the S&P 500 Index, which was 4.88% down. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like Avient Corporation (NYSE:AVNT) in the Q3 2022 investor letter. Headquartered in Avon Lake, Ohio, Avient Corporation (NYSE:AVNT) is a US-based formulator, services, and sustainable material solutions provider. On October 31, 2022, Avient Corporation (NYSE:AVNT) stock closed at $34.49 per share. One-month return of Avient Corporation (NYSE:AVNT) was 1.74%, and its shares lost 37.28% of their value over the last 52 weeks. Avient Corporation (NYSE:AVNT) has a market capitalization of $3.136 billion.
Here is what Baron Funds specifically said about Avient Corporation (NYSE:AVNT) in its Q3 2022 investor letter:
“Avient Corporation (NYSE:AVNT), a leading global formulator of chemical additives and specialized polymer materials, declined when the company lowered guidance by about 10%. Management cited slower demand in Europe and China and currency translation issues. Avient recently completed the acquisition of a neat, high-performance fiber business and announced the sale of its distribution operation, which completes its transformation to a pure-play specialty chemical company. We believe that, over time, the company will have a higher multiple to reflect the quality of its operations. We are underwriting lower earnings in 2023 for this cyclical business. The stock currently trades at a discounted multiple to those estimates, so we expect nice growth in the future.”
Photo by Nick Fewings on Unsplash
Avient Corporation (NYSE:AVNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Avient Corporation (NYSE:AVNT) at the end of the second quarter which was 20 in the previous quarter.
We discussed Avient Corporation (NYSE:AVNT) in another article and shared the list of stocks that were recently downgraded by analysts. In addition, please check out 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 is originally published at Insider Monkey.