Baron Funds' Baron Fifth Avenue Growth Fund Comments on Synchrony Financial

- By Holly LaFon

Shares of our most recent investment, Synchrony Financial (SYF), the largest U.S. issuer of private label credit cards, were up 16%. Synchrony benefited from the post-election rally for financial stocks and on hopes for faster economic growth and higher inflation. In addition, Synchrony reported financial results that beat Street estimates, with 12% growth in net interest income, significant margin expansion, and the initiation of a capital return program. We believe Synchrony operates in a highly profitable market niche and has a long runway for growth.

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• SYF 15-Year Financial Data

• The intrinsic value of SYF

• Peter Lynch Chart of SYF

From Baron Funds' Fifth Avenue Growth Fund fourth quarter 2016 commentary.

This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 4 Warning Signs with AMZN. Click here to check it out.

• SYF 15-Year Financial Data

• The intrinsic value of SYF

• Peter Lynch Chart of SYF