Multiple Reasons for the Fall of Montrose Environmental Group (MEG)
Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. Baron Discovery Fund (the Fund) reached its 10-year anniversary on September 30, 2023. Since inception, on a cumulative basis, the fund was up 195.3% (Institutional Shares) compared to the Russell 2000 Growth Index’s 91.6% return. During the quarter, the fund returned -5.36% (Institutional Shares) compared to -7.32% return for the benchmark. The bond market became the latest headwind to stock market performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Montrose Environmental Group, Inc. (NYSE:MEG) in the third quarter 2023 investor letter. Headquartered in North Little Rock, Arkansas, Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. On November 10, 2023, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $25.77 per share. One-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 3.20%, and its shares lost 46.20% of their value over the last 52 weeks. Montrose Environmental Group, Inc. (NYSE:MEG) has a market capitalization of $777.95 million.
Baron Discovery Fund made the following comment about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q3 2023 investor letter:
"Montrose Environmental Group, Inc. (NYSE:MEG) is a services company that provides environmental analysis, testing, and remediation consulting as well as technology solutions. Shares were weak in the quarter along with a broader decline in small-cap stocks as well as due to concerns that infrastructure investments could get pushed out while waiting for the finalization of certain government rules. We continue to believe that Montrose’s patented technology positions them well to benefit from the billions of dollars of upcoming spending by both government and industrial customers related to the clean-up of PFAS (polyfluoroalkyl substances, sometimes known as forever chemicals). In addition, Montrose’s methane emissions monitoring and detection business is poised to ramp up as the Inflation Reduction Act spurs corporate compliance by imposing a waste emissions charge. We continue to be confident around the long-term opportunity for Montrose as well as its management’s ability to execute on the company’s growth strategy."
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Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of second quarter which was 12 in the previous quarter.
We discussed Montrose Environmental Group, Inc. (NYSE:MEG) in another article and shared the list of best waste management stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.
