Shares of Financial Engines, Inc. (FNGN, Financial), an investment accounts advisor, declined in the first quarter, in response to fourth quarter results that missed expectations due to modest margin contraction. In addition, asset growth was a bit less than prior periods. It is not unusual for this fast growing business to have "lumpy" quarterly results, however. Financial Engines is still gaining new plans and converting assets to its professionally managed service. It is developing and implementing new products and increasing marketing spend, which we think should improve enrollment rates over the coming years. Baron Growth Fund has about tripled its money in this investment over the past four years. (Michael Baron)
From Baron Funds' first quarter 2014 letter to investors.
