EXPO - Baron Funds - Exponent Inc.: Rare Pause In Annual Growth Offers An Opportunity

2024-05-10 08:40:00 ET

Summary

• Exponent is a business that we have admired from the sidelines for a while, and we finally saw an opportunity to initiate a position at an attractive price due to a rare pause in annual growth.
• No competitors can match the capabilities that Exponent brings to the table, especially as it relates to multi-disciplinary and highly complex matters.
• Despite the near-term growth pause, we believe Exponent is well positioned to drive high single-digit or greater revenue growth over time.

The following segment was excerpted from this fund letter.

Exponent, Inc. ( EXPO )

Exponent, Inc. is a leading engineering & scientific consulting firm. Around half of the business is reactive work where the company gets brought in to determine the root cause of an event such as car recalls, oil spills, and wildfires; and the remainder is proactive work where clients engage Exponent before an issue arises to help with risk management and product design. Exponent is a business that we have admired from the sidelines for a while, and we finally saw an opportunity to initiate a position at an attractive price due to a rare pause in annual growth, which we believe to be temporary....

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