Bright Horizons Family Solutions, Inc. (BFAM, Financial) is the leading U.S. provider ofcorporate-sponsored childcare. Shares fell as labor shortages exacerbated the time needed to backfill center enrollment lost during COVID. While we believe full enrollment recovery is a matter of when, not if, it now appears that this recovery will occur sometime in 2023 as opposed to the year-end 2022 target. Margins will also remain pressured as wage hikes to attract new teachers outpace tuition increases. Despite near-term headwinds, we remain bullish on this high-quality company.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund third-quarter 2022 commentary.
