Renowned investor Ron Baron recently disclosed his firm's portfolio for the second quarter of 2023, which ended on June 30, 2023. Baron, known for his long-term investment strategy and focus on growth stocks, manages a diverse portfolio of 345 stocks with a total value of $36.11 billion.
The top holdings in Baron's portfolio were Tesla Inc. (TSLA) with a weight of 12.83%, CoStar Group Inc. (CSGP) at 4.71%, and Gartner Inc. (IT, Financial) at 4.58%.
Top Three Trades of Q2 2023
The following were the firm's top three trades of the quarter, which significantly impacted the equity portfolio.
Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
Baron's firm reduced its investment in Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) by 637,463 shares, impacting the equity portfolio by 0.18%. The stock traded for an average price of $93.07 during the quarter. As of August 14, 2023, TSM had a market cap of $482.19 billion and a stock price of $92.9715. The stock has returned 4.47% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10. TSM's valuation ratios include a price-earnings ratio of 15.41, a price-book ratio of 4.49, a PEG ratio of 0.82, a EV-to-Ebitda ratio of 9.22, and a price-sales ratio of 6.39.
Alibaba Group Holding Ltd (NYSE:BABA)
During the quarter, Baron's firm bought 458,517 shares of Alibaba Group Holding Ltd (NYSE:BABA), bringing the total holding to 2,710,165 shares. This trade had a 0.11% impact on the equity portfolio. The stock traded for an average price of $87.76 during the quarter. As of August 14, 2023, BABA had a market cap of $238.84 billion and a stock price of $93.78. The stock has returned -1.14% over the past year. GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10. BABA's valuation ratios include a price-earnings ratio of 20.30, a price-book ratio of 1.69, a PEG ratio of 18.45, a EV-to-Ebitda ratio of 9.36, and a price-sales ratio of 1.90.
Digital Realty Trust Inc (NYSE:DLR)
Baron's firm bought 320,908 shares of Digital Realty Trust Inc (NYSE:DLR) during the quarter, bringing the total holding to 376,936 shares. This trade had a 0.1% impact on the equity portfolio. The stock traded for an average price of $98.93 during the quarter. As of August 14, 2023, DLR had a market cap of $36.99 billion and a stock price of $122.19. The stock has returned -3.09% over the past year. GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10. DLR's valuation ratios include a price-earnings ratio of 93.99, a price-book ratio of 2.16, a PEG ratio of 44.76, a EV-to-Ebitda ratio of 22.38, and a price-sales ratio of 7.28.
In conclusion, Ron Baron (Trades, Portfolio)'s Q2 2023 portfolio shows his firm's continued focus on growth stocks and long-term investment strategy. The top trades of the quarter provide valuable insights into the firm's investment decisions and the current market conditions.
