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Baron Asset Fund: “WIX’s Shares Could Eventually Moderate”

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Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron Asset Fund” investor letter – a copy of which can be downloaded here. A return of 15.14% was recorded by its Retail Shares, and 15.21% by its Institutional Shares in the fourth quarter of 2020, both below its Russell Midcap Growth Benchmark that delivered a 19.02% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Funds, in their Q4 2020 investor letter, mentioned Wix.com Ltd. (NASDAQ: WIX) and emphasized their views on the company. Wix.com Ltd. is a Tel Aviv-Yafo, Israel-based web development company that currently has a $16.5 billion market capitalization. Since the beginning of the year, WIX delivered an 18.50% return, impressively extending its 12-month gains to 176.57%. As of March 22, 2021, the stock closed at $296.21 per share.

Here is what Baron Funds has to say about Wix.com Ltd. in their Q4 2020 investor letter:

“Weakness in IT was largely due to share price declines from web software firm Wix.com Ltd. After doubling during the first three quarters of 2020, Wix’s shares fell slightly on concerns that its business, which benefited from increased website creation during the pandemic, could eventually moderate."

Business Ideas with Low Investment and High Profit
Business Ideas with Low Investment and High Profit

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Our calculations show that Wix.com Ltd. (NASDAQ: WIX) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Wix.com Ltd. was in 37 hedge fund portfolios, compared to 36 funds in the third quarter. WIX delivered an 8.82% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.