What Makes Booz Allen Hamilton Holding Corporation (BAH) an Investment Opportunity?
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 Booz Allen Hamilton Holding Corporation (NYSE:BAH) in the second quarter 2023 investor letter. Headquartered in McLean, Virginia, Booz Allen Hamilton Holding Corporation (NYSE:BAH) offers management and technology consulting services. On July 27, 2023, Booz Allen Hamilton Holding Corporation (NYSE:BAH) stock closed at $113.96 per share. One-month return of Booz Allen Hamilton Holding Corporation (NYSE:BAH) was 2.11%, and its shares gained 18.73% of their value over the last 52 weeks. Booz Allen Hamilton Holding Corporation (NYSE:BAH) has a market capitalization of $14.928 billion.
Baron Asset Fund made the following comment about Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its second quarter 2023 investor letter:
"We re-initiated a position in Booz Allen Hamilton Holding Corporation (NYSE:BAH), the premier provider of outsourced civil and military consulting services to the federal government. We believe that Booz’s consultants (65% of whom possess security clearances) are best in class at tackling sensitive and high priority cybersecurity, intelligence, defense, and spending efficiency projects for various government agencies. Under longtime CEO Horacio Rozanski, the company has thoughtfully invested in AI, cybersecurity, software, and other advanced technologies. It had remained ahead of its peers and is an important partner providing the government mission-critical and highly technical solutions. In addition, Booz is the largest single provider of AI services to the federal government, which we believe will be a source of ongoing, outsized growth.
We believe the ongoing U.S. military rivalry with Russia and China will provide a tailwind for increased defense budget growth and enhance the demand for Booz’s services. Booz expects to continue outgrowing its consulting peers by 2% to 4% annually, translating to mid- to high single-digit organic revenue growth that will be enhanced by targeted acquisitions. We expect improved pricing realizations and gradually increased margins as well."
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Booz Allen Hamilton Holding Corporation (NYSE:BAH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Booz Allen Hamilton Holding Corporation (NYSE:BAH) at the end of first quarter which was 36 in the previous quarter.
We discussed Booz Allen Hamilton Holding Corporation (NYSE:BAH) in another article and shared the list of growth stocks to watch in Louis Navellier’s 2023 portfolio. 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.
