Here’s Why Verisk Analytics (VRSK) Lagged in Q4
Baron Funds, an investment management company, released its “Baron Asset Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. Declining interest rates and investors' increasing confidence that there won't be a hard-landing economic recession were both influenced by moderating inflation and improving labor market conditions. This bullish outlook fueled investor risk-taking and a robust equities market surge throughout the quarter. Against this backdrop, the fund gained 12.45% (Institutional Shares) in the fourth quarter underperforming the Russell Midcap Growth Index’s 14.55% return. Headwinds from the Fund's style biases, particularly its underexposure to equities with elevated beta and residual volatility, as well as the impact of stock selection, contributed to its relative underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund featured stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK) in the fourth quarter 2023 investor letter. Based in Jersey City, New Jersey, Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. On January 24, 2024, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $244.65 per share. One-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was 2.96%, and its shares gained 35.17% of their value over the last 52 weeks. Verisk Analytics, Inc. (NASDAQ:VRSK) has a market capitalization of $35.471 billion.
Baron Asset Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its fourth quarter 2023 investor letter:
"Within Industrials, strong performance from private rocket and spacecraft manufacturer Space Exploration Technologies Corp. was overshadowed by the underperformance of consumer credit bureau TransUnion and data and analytics vendor Verisk Analytics, Inc. (NASDAQ:VRSK) Despite reporting strong quarterly earnings, Verisk’s stock lagged due to investor concerns that revenue growth will normalize in 2024 following outsized growth in 2023."
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Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of third quarter which was 46 in the previous quarter.
We discussed Verisk Analytics, Inc. (NASDAQ:VRSK) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy's views on the company in the previous quarter. 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.
