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 Cloudflare, Inc. (NYSE:NET) in the first quarter 2023 investor letter. Headquartered in San Francisco, California, Cloudflare, Inc. (NYSE:NET) provides cloud services globally. On May 16, 2023, Cloudflare, Inc. (NYSE:NET) stock closed at $51.21 per share. One-month return of Cloudflare, Inc. (NYSE:NET) was -18.55%, and its shares lost 4.03% of their value over the last 52 weeks. Cloudflare, Inc. (NYSE:NET) has a market capitalization of $16.997 billion.
Baron Fifth Avenue Growth Fund made the following comment about Cloudflare, Inc. (NYSE:NET) in its Q1 2023 investor letter:
“We also added to Cloudflare, Inc. (NYSE:NET) during the quarter, the leading cloud-based networking and software infrastructure provider. Despite facing a macro-driven elongation of deal cycles, the company reported solid quarterly results with 42% year-over-year revenue growth, while also guiding to 37% growth for 2023. The company’s speed of innovation enables it to continuously grow its opportunity set as it adds more products to its platform, solving additional problems for customers from network services to zero-trust. Its scale-based competitive advantages enable it to be the low-cost provider in the industry, while also having significant volumes of data to power its AI models and improve its product over time. Once it gets customers on board, Cloudflare is then able to cross-sell them additional networking and security solutions at high marginal profitability, as they are served on the same underlying infrastructure and thus the company doesn’t need to spend once more on customer acquisition. This creates a virtuous cycle that should enable Cloudflare to become an important part of the infrastructure layer of organizations over time, in our view.”
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Cloudflare, Inc. (NYSE:NET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Cloudflare, Inc. (NYSE:NET) at the end of the fourth quarter which was 53 in the previous quarter.
We discussed Cloudflare, Inc. (NYSE:NET) in another article and shared the list of stocks whose price targets were recently trimmed by analysts. 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.