FactSet Research Systems (FDS) Fell Despite Solid Quarterly Results
Baron Funds, an investment management company, released its “Baron Asset Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. U.S. equities continued their upward trend in the second consecutive quarter. The rise was led by the outsized performance of a few large technology companies, partly driven by the hype surrounding their potential benefits from the widespread adoption of artificial intelligence (AI). Against this backdrop, the Baron Asset Fund increased by 3.63% (Institutional Shares) trailing Russell Midcap Growth Index’s 6.23% returns. The underperformance of certain stocks affected the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund highlighted stocks like FactSet Research Systems Inc. (NYSE:FDS) in the second quarter 2023 investor letter. Headquartered in Norwalk, Connecticut, FactSet Research Systems Inc. (NYSE:FDS) provides financial data and analytics to the investment community. On July 27, 2023, FactSet Research Systems Inc. (NYSE:FDS) stock closed at $435.44 per share. One-month return of FactSet Research Systems Inc. (NYSE:FDS) was 8.68%, and its shares gained 1.34% of their value over the last 52 weeks. FactSet Research Systems Inc. (NYSE:FDS) has a market capitalization of $16.686 billion.
Baron Asset Fund made the following comment about FactSet Research Systems Inc. (NYSE:FDS) in its second quarter 2023 investor letter:
"Investments in Financials together with higher exposure to lagging life sciences tools & services stocks within Health Care also served as material headwinds to performance. Performance in Financials was impacted by bond trading platform MarketAxess Holdings Inc. and investment management tools provider FactSet Research Systems Inc. (NYSE:FDS). Despite reporting solid quarterly results, FactSet’s stock fell as macro-related uncertainty (challenges in the banking sector, lengthening sales cycles, constrained client budgets) caused its annual subscription value growth to decelerate. While there is some near-term uncertainty, we believe that these issues are more cyclical in nature, and we believe FactSet’s large addressable market and new product development should lead to sustained long-term growth and free-cash-flow generation.”
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FactSet Research Systems Inc. (NYSE:FDS) not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held FactSet Research Systems Inc. (NYSE:FDS) at the end of first quarter which was 38 in the previous quarter.
We discussed FactSet Research Systems Inc. (NYSE:FDS) in another article and shared Baron Growth Fund’s insights on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
