The pandemic-related trends contributed to this new focus and sense of momentum, Mr. Baron argues. Legacy businesses weren't able modify their business plans rapidly, so disruptive companies offering new models were able to capitalize on that.
For instance, Zillow Group Inc. already has captured more attention from eager home buyers (encouraged by ultralow interest rates) reluctant to tour homes in person in the company of a real-estate agent. Tesla Inc., the fund's largest holding, came to be seen not only as the maker of more environmentally friendly cars, but as a consumer-friendly business in a pandemic.
"Fewer people touch the vehicles when they're made, and there's no need to go to a dealership and interact with other people to make the purchase or get the vehicle serviced," says Mr. Baron.
The No. 4 finisher was Hodges Fund (HDPMX), with a 182% gain under Craig Hodges. It employs a "go anywhere" approach that enabled Mr. Hodges to add (and later subtract) pandemic-economy winners like Zoom Video Communications Inc. More recently, the fund has diversified, adding small positions in sports betting firms ( DraftKings Inc.) and food-delivery companies ( Waitr Holdings Inc.) Like Mr. James at Driehaus, Mr. Hodges benefited from a stake in Nautilus and ventured further into the outdoor-sports arena with a stake in Callaway Golf Co.
Ms. McGee is a writer in New England. She can be reached at reports@wsj.com.
(END) Dow Jones Newswires
04-04-21 1314ET
