Baron Funds' Baron Fifth Avenue Growth Fund Comments on Synchrony Financial

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Feb 13, 2017

Shares of our most recent investment, Synchrony Financial (NYSE:SYF), the largest U.S. issuer of private label credit cards, were up 16%. Synchrony benefited from the post-election rally for financial stocks and on hopes for faster economic growth and higher inflation. In addition, Synchrony reported financial results that beat Street estimates, with 12% growth in net interest income, significant margin expansion, and the initiation of a capital return program. We believe Synchrony operates in a highly profitable market niche and has a long runway for growth.

From Baron Funds' Fifth Avenue Growth Fund fourth quarter 2016 commentary.