Baron Discovery Fund Trimmed its Position in Advanced Energy Industries (AEIS)

Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund appreciated 6.20% (Institutional Shares), outperforming the 4.50% return for the Russell 2000 Growth Index. For the year ended December 31, 2024, the fund returned 16.28% compared to the index’s 15.15% return. Given the challenging start in the first half of the year, the fund was pleased with the outperformance of the fund in 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Discovery Fund highlighted stocks like Advanced Energy Industries, Inc. (NASDAQ:AEIS), in the fourth quarter 2024 investor letter. Based in Denver, Colorado, Advanced Energy Industries, Inc. (NASDAQ:AEIS) provides precision power conversion, measurement, and control solutions. The one-month return of Advanced Energy Industries, Inc. (NASDAQ:AEIS) was 8.82%, and its shares gained 19.29% of their value over the last 52 weeks.  On January 23, 2024, Advanced Energy Industries, Inc. (NASDAQ:AEIS) stock closed at $125.29 per share with a market capitalization of $4.72 billion.

Baron Discovery Fund stated the following regarding Advanced Energy Industries, Inc. (NASDAQ:AEIS) in its Q4 2024 investor letter:

“We trimmed our investment in Advanced Energy Industries, Inc. (NASDAQ:AEIS) to manage the position size to about 2%. We still believe the company has many opportunities to grow its state-of-the-art power management product set in semiconductor capital equipment, medical devices, and advanced industrial applications.”

A technician operating a power control module at a laboratory station.

Advanced Energy Industries, Inc. (NASDAQ:AEIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Advanced Energy Industries, Inc. (NASDAQ:AEIS) at the end of the third quarter which was 16 in the previous quarter. Advanced Energy Industries, Inc. (NASDAQ:AEIS) generated revenue of $374 million in the third quarter, which is slightly above the midpoint of guidance range. While we acknowledge the potential of Advanced Energy Industries, Inc. (NASDAQ:AEIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.