Shares of benefits enrollment platform Benefitfocus, Inc. (BNFT, Financial) detracted from performance in the fourth quarter due to financial results that missed Street expectations. We retain conviction, as we believe this is a short-term issue. The company has pivoted to signing larger, more complex employee and carrier customers during the 2019 selling season. While this is accretive to growth in the long term, larger customers take longer to implement, thereby delaying revenue recognition by several quarters.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund fourth-quarter 2019 shareholder letter.
