Here’s Why Baron Prospect Fund Sold its QuantumScape Corp. (QS) Placement
Baron Resources, an asset administration firm, printed its “Baron Opportunity Fund” initial quarter 2021 investor letter – a copy of which can be downloaded right here. A return of .88% was delivered by the fund’s institutional shares for the Q1 of 2021, underneath equally its S&P 500 and Russell 3000 Progress Index that sent a 6.17% and 1.19% returns respectively for the very same interval. You can check out the fund’s top rated 5 holdings to have a peek at their top rated bets for 2021.
Baron Opportunity Fund, in their Q1 2021 trader letter, outlined QuantumScape Corporation (NYSE: QS), and shared their insights on the company. QuantumScape Corporation is a San Jose, California-based mostly stable point out lithium steel batteries improvement phase organization that at this time has a $14.2 billion industry capitalization. Considering the fact that the beginning of the 12 months, QS shipped a -56.73% return, when its 3-month return are down by -13.68%. As of April 30, 2021, the stock shut at $36.54 per share.
Right here is what Baron Option Fund has to say about QuantumScape Corporation in their Q1 2021 investor letter:
“QuantumScape Company is an early-stage developer of good-state battery technologies for electrical autos aimed at strengthening important areas of batteries, such as safety, charging moments, vitality density, and expense. The corporation went general public via a SPAC in November. Right after rapid appreciation, the inventory arrived less than stress when the organization elevated more capital to assist accelerate its commercialization method. We exited our tiny posture, as explained beneath.
We marketed QuantumScape Company, an early-phase sound-condition electric powered automobile battery innovator, due to the fact it was an undersized place with an ambitious valuation. We will carry on to keep track of QuantumScape’s developments and may perhaps revisit the organization as an investment decision at a future level in time. “
Our calculations show that QuantumScape Company (NYSE: QS) does not belong in our listing of the 30 Most Preferred Stocks Among the Hedge Resources. As of the stop of the fourth quarter of 2020, QuantumScape Corporation was in 35 hedge fund portfolios, in comparison to 14 money in the 3rd quarter. QS delivered a -25.99% return in the past thirty day period.
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Disclosure: None. This article is originally posted at Insider Monkey.