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Baron Growth Fund Remains Optimistic in MSCI Inc. (MSCI) Despite Performing Poorly

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Baron Funds, an asset management firm, published its “Baron Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.94% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing its primary benchmark, the Russell 2000 Growth Index, that rose to 4.88% and the S&P 500 Index that delivered a 6.17% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Growth Fund, in its Q1 2021 investor letter, mentioned MSCI Inc. (NYSE: MSCI), and shared their insights on the company. MSCI Inc. is a New York, New York-based finance company that currently has a $37.9 billion market capitalization. Since the beginning of the year, MSCI delivered a 2.88% return, extending its 12-month gains to 34.31%. As of May 12, 2021, the stock closed at $460.18 per share.

Here is what Baron Growth Fund has to say about MSCI Inc. in its Q1 2021 investor letter:

"Shares of MSCI, Inc., a leading provider of investment decision support tools, detracted from performance. The stock pulled back as part of the broader market rotation that saw steady compounders, especially ones with strong 2020 performance, temporarily fall out of favor. There was no materially negative company-specific news; MSCI reported largely solid fourth quarter earnings and hosted an upbeat investor day. We retain long-term conviction as MSCI owns strong, all-weather franchises and remains well positioned to benefit from numerous tailwinds in the investment community."

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Our calculations show that MSCI Inc. (NYSE: MSCI) 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, MSCI Inc. was in 41 hedge fund portfolios, compared to 47 funds in the third quarter. MSCI delivered a 7.62% 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.

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