Baron Asset Fund Sold SBA Communications Corporation (SBAC) Due to Concerns Over Higher Interest Rates
Baron Funds, an investment management company, released its “Baron Asset Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The market rally that was driven by technology this year came to a halt in the third quarter. Against this backdrop, the Baron Asset Fund declined 4.42% (Institutional Shares) in the third quarter outperforming the Russell Midcap Growth Index’s -5.22% return. Positive stock selection and tailwinds from its style biases drove the outperformance in the quarter. The Fund’s underexposure to higher beta stocks, which performed poorly during the market reversal was another notable factor. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund highlighted stocks like SBA Communications Corporation (NASDAQ:SBAC) in the third quarter 2023 investor letter. SBA Communications Corporation (NASDAQ:SBAC) owns and operates wireless communications infrastructure. On November 10, 2023, SBA Communications Corporation (NASDAQ:SBAC) stock closed at $218.99 per share. One-month return of SBA Communications Corporation (NASDAQ:SBAC) was 8.64%, and its shares lost 26.51% of their value over the last 52 weeks. SBA Communications Corporation (NASDAQ:SBAC) has a market capitalization of $23.626 billion.
Baron Asset Fund made the following comment about SBA Communications Corporation (NASDAQ:SBAC) in its Q3 2023 investor letter:
"We reduced our stake in long-term holding SBA Communications Corporation (NASDAQ:SBAC), which owns and operates cellular towers, on concerns that higher interest rates will increase its debt servicing costs and indications that its primary customers will spend less on upgrading their cellular networks."
Aerial view of tall antenna towers and the landscape around them.
SBA Communications Corporation (NASDAQ:SBAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held SBA Communications Corporation (NASDAQ:SBAC) at the end of second quarter which was 42 in the previous quarter.
We discussed SBA Communications Corporation (NASDAQ:SBAC) in another article and shared the list of best real estate and realty stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 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.
