Is it a Smart Move to Invest in LPL Financial Holdings (LPLA)?

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned LPL Financial Holdings Inc. (NASDAQ:LPLA) and explained its insights for the company. Founded in 1989, LPL Financial Holdings Inc. (NASDAQ:LPLA) is a San Diego, California-based investment and business solutions provider with a $17.6 billion market capitalization. LPL Financial Holdings Inc. (NASDAQ:LPLA) delivered a 37.94% return since the beginning of the year, while its 12-month returns are up by 47.43%. The stock closed at $220.83 per share on September 06, 2022.

Here is what Baron Fintech Fund has to say about LPL Financial Holdings Inc. (NASDAQ:LPLA) in its Q2 2022 investor letter:

“Favorable stock selection in Tech-Enabled Financials was responsible for most of the relative gains, with LPL Financial Holdings Inc. (NASDAQ:LPLA). LPL’s shares outperformed because the company benefits from higher interest rates and continues to win asset inflows despite market volatility. Kinsale’s shares outperformed after the company reported strong financial results and because P&C insurers are often viewed as defensive stocks during market downturns.”

Investments, Finance

Our calculations show that LPL Financial Holdings Inc. (NASDAQ:LPLA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. LPL Financial Holdings Inc. (NASDAQ:LPLA) was in 47 hedge fund portfolios at the end of the second quarter of 2022, compared to 47 funds in the previous quarter. LPL Financial Holdings Inc. (NASDAQ:LPLA) delivered a 10.96% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on LPL Financial Holdings Inc. (NASDAQ:LPLA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.

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