Shares of benefits software vendor Benefitfocus, Inc. (NASDAQ:BNFT) detracted from performance due to disappointing short-term growth forecasts. The company terminated its exclusive technology relationship with Mercer, which will reduce organic growth in 2019; however, we believe it will allow the company to work with a larger number of independent brokers and be accretive to growth in 2020. Despite the unexpected departure of the CFO and head of sales, we expect the company to drive significant growth in customers and revenue per customer, pushing growth above 20%.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund second-quarter 2019 shareholder commentary.
