Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 19.7% (Institutional Shares) in the first quarter compared to a 14.4% gain for the Russell 1000 Growth Index and a 7.5% gain for the S&P 500 Index. The firm has great conviction about the long-term prospects of its holding companies even though the near-term uncertainty is very high. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Fifth Avenue Growth Fund highlighted stocks like The Trade Desk, Inc. (NASDAQ:TTD) in the first quarter 2023 investor letter. Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company. On May 16, 2023, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $64.14 per share. One-month return of The Trade Desk, Inc. (NASDAQ:TTD) was 4.11%, and its shares gained 26.31% of their value over the last 52 weeks. The Trade Desk, Inc. (NASDAQ:TTD) has a market capitalization of $31.355 billion.
Baron Fifth Avenue Growth Fund made the following comment about The Trade Desk, Inc. (NASDAQ:TTD) in its Q1 2023 investor letter:
“The Trade Desk, Inc. (NASDAQ:TTD) is the leading internet advertising demand-side platform, enabling programmatic (automated) buying of digital advertising. The company is benefiting from the growth in CTV, while also expanding its market share as advertisers find its neutral positioning in the market attractive; the company only operates on one side of the market (the buy side) as opposed to Google which also purchases ads for its own assets (such as YouTube). Thus, Google operates under a structural potential conflict of interests: on the one hand, its advertising customers are interested in paying as little as possible for the ads they purchase, but on the other hand, its publishing assets such as YouTube, are interested in getting as much as possible for the ads they sell. Trade Desk’s management continues showing excellent performance under an uncertain macro backdrop. In its last quarterly results, the company reported 24% year-over-year revenue growth with 50% adjusted EBITDA margins, while also providing outlook that was slightly above expectations. This revenue growth rate is quite impressive when considered against the negative growth rates reported by most other digital advertisers, including -2% for Google search and -4% for Meta. We believe the company would be a key beneficiary as advertising dollars increasingly shift from linear TV to CTV. We have therefore increased our holding.”
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The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the fourth quarter which was 37 in the previous quarter.
We discussed The Trade Desk, Inc. (NASDAQ:TTD) in another article and shared Polen Capital’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.