Marriott Vacations Worldwide Corporation (VAC) Fell on Soft Sales
Baron Funds, an investment management firm, released its “Focused Growth Fund” fourth quarter 2023 investor letter, a copy of which can be downloaded here. The fund had a strong fourth quarter and increased by 9.74% (Institutional Shares) underperforming the Russell 2500 Growth Index’s (the Benchmark) 12.59% return. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
Baron Focused Growth Fund featured stocks like Marriott Vacations Worldwide Corporation (NYSE:VAC) in the fourth quarter 2023 investor letter. Headquartered in Orlando, Florida, Marriott Vacations Worldwide Corporation (NYSE:VAC) is a vacation company. On March 4, 2024, Marriott Vacations Worldwide Corporation (NYSE:VAC) stock closed at $91.78 per share. One-month return of Marriott Vacations Worldwide Corporation (NYSE:VAC) was 10.10%, and its shares lost 40.14% of their value over the last 52 weeks. Marriott Vacations Worldwide Corporation (NYSE:VAC) has a market capitalization of $3.305 billion.
Baron Focused Growth Fund stated the following regarding Marriott Vacations Worldwide Corporation (NYSE:VAC) in its fourth quarter 2023 investor letter:
"Shares of timeshare company Marriott Vacations Worldwide Corporation (NYSE:VAC) fell in the quarter, driven by soft sales of timeshare units due to higher interest rates and the slow ramp of a new product offering. A default rate that was higher than the company had anticipated forced it to take a charge to increase its reserves, pressuring earnings and cash flow. We opted to exit our position due to the increased stress on its consumer base and a resulting increase in financial leverage, which we found inappropriate for a focused fund."
Aerial view of luxury beachfront vacation resorts that are owned by timeshare company.
Marriott Vacations Worldwide Corporation (NYSE:VAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Marriott Vacations Worldwide Corporation (NYSE:VAC) was held by 26 hedge fund portfolios, up from 21 in the previous quarter, according to our database.
We discussed Marriott Vacations Worldwide Corporation (NYSE:VAC) in another article and shared Baron Real Estate Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 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.
