Big selling wave in stocks makes for a buying opportunity, says Baron manager who has 20% of his fund's assets in Tesla

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OPINION: Institutional investors have been clearing out of stocks. They sold $42 billion worth in the five weeks ending Sept. 21. “This is a pretty good buying opportunity,” says David Baron of Baron Focused Growth Fund.

Institutional investors have been clearing out of stocks. They sold $42 billion worth in the five weeks ending Sept. 21.

2. You can take a peek inside his portfolio for stock ideas. “A slowdown does not change our thesis on our stocks. Our companies continue to innovate and continue to grow,” says Baron. Following the stock’s big move in 2020, the fund trimmed it a bit, but Baron is keeping a huge position. The next four big concentrated positions are the privately held Space Exploration Technologies , the insurer Arch Capital Group ACGL, -0.63%, Hyatt Hotels H, -0.47% and the real estate market analytics company CoStar Group CSGP, -1.47%, at 5% to 6% each. This brings big exposure to the gaming and lodging sector, which makes up 20% of the portfolio. Baron, who was once a gaming analyst at Jefferies Group, expects solid growth as people continue to want to break free of pandemic lockdown life.

A lesser-known name from Baron’s holdings that fit the bill is Figs FIGS, -6.99%. The company sells scrubs, lab coats and related health-care sector apparel designed for comfort, style and durability. Figs stock has fallen sharply to under $10 from highs of around $50 shortly after its May 2021 initial public offering.

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So, he is the one guy left holding and so 'talking his book'. 😁

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