Here’s What Makes LPL Financial (LPLA) a Great Buy
Baron Funds, an investment management firm, released its "Baron FinTech Fund" third quarter 2023 investor letter, a copy of which can be downloaded here. During the quarter concluding on September 30, 2023, Baron FinTech Fund® (Institutional Shares) experienced a 1.30% increase, contrasting with a 6.77% loss for the FactSet Global FinTech Index (the Benchmark). Since its inception on December 31, 2019, the Fund has achieved an annualized growth of 6.50%, surpassing the Benchmark, which declined by 2.22%. Take a moment to review the fund's top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Baron FinTech Fund mentioned LPL Financial Holdings Inc. (NASDAQ:LPLA) and explained its insights for the company. LPL Financial Holdings Inc. (NASDAQ:LPLA) is a San Diego, California-based financial services company with a $17.2 billion market capitalization. LPL Financial Holdings Inc. (NASDAQ:LPLA) delivered a 5.74% return since the beginning of the year, while its 12-month returns are down by -0.98%. The stock closed at $228.57 per share on November 9, 2023.
Here is what Baron FinTech Fund has to say about LPL Financial Holdings Inc. (NASDAQ:LPLA) in its Q3 2023 investor letter:
"Favorable stock selection in Tech-Enabled Financials drove over one-third of this quarter’s outperformance, led by gains from independent broker-dealer LPL Financial Holdings Inc. LPL shares benefited from strong organic growth and higher interest rates. The company continued to gain market share as it amassed assets not only from new advisor recruitment but also increasingly from its ability to win large enterprise deals from banks and insurers. The higher interest rate environment raises the yield that LPL earns on client cash balances."
A woman examining her finances and a mortgage payment plan on her laptop.
Our calculations show that LPL Financial Holdings Inc. (NASDAQ:LPLA) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. LPL Financial Holdings Inc. (NASDAQ:LPLA) was in 48 hedge fund portfolios at the end of the second quarter of 2023, compared to 52 funds in the previous quarter. LPL Financial Holdings Inc. (NASDAQ:LPLA) delivered a 0.49% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
