Shares of health care data and analytics vendor Inovalon Holdings, Inc. (NASDAQ:INOV) fell in the third quarter on weak financial results and reduced guidance through year end. Management attributed the revenue shortfall to price reductions in its retrospective risk adjustment business, and the margin shortfall to investments aimed at long-term growth. We think the recent poor performance is temporary. Inovalon has high quality products that generate solid return on investment for its customers, and we think it is well positioned to capitalize on the need for robust data and analytics in health care. (Neal Rosenberg)
From Ron Baron (Trades, Portfolio)'s Barons Partners Fund third-quarter 2016 commentary.
