Baron Funds, an investment management firm, released its “Baron Global Advantage Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was up 5.6% (institutional shares) in the third quarter compared to a 6.6% gain for the MSCI ACWI Index (the Index) and a 4.1% gain for the MSCI ACWI Growth Index, the Fund’s benchmark. In the third quarter, global equity indices rose, with several reaching new all-time highs. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Baron Global Advantage Fund highlighted stocks like Shopify Inc. (NYSE:SHOP) in its Q3 2024 investor letter. Headquartered in Ottawa, Canada, Shopify Inc. (NYSE:SHOP) provides a cloud-based commerce platform and services. The one-month return of Shopify Inc. (NYSE:SHOP) was 2.78%, and its shares gained 39.47% of their value over the last 52 weeks. On November 7, 2024, Shopify Inc. (NYSE:SHOP) stock closed at $85.55 per share with a market capitalization of $109.789 billion.
Baron Global Advantage Fund stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q3 2024 investor letter:
“Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 21.3% after reporting strong financial results with revenue growth of 25% year-on-year, accelerating from the prior quarter. Shopify’s operating margins also outperformed, at 14.6%, or nearly 3% better than expected, alleviating investor concerns over an upcoming investment cycle. While the company continues gaining share in its core business, we are increasingly seeing data points that point to a successful expansion to new opportunities including international, B2B, and offline. Despite volatility in the pace of reinvestments and margin expansion, we remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth, as it still holds less than a 2% share of the global commerce market.”
A shopper browsing through products online from the comfort of their home.
Shopify Inc. (NYSE:SHOP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Shopify Inc. (NYSE:SHOP) at the end of the second quarter which was 65 in the previous quarter. Shopify Inc.’s (NYSE:SHOP) second-quarter revenue was $2 billion, up 21% year-over-year. While we acknowledge the potential of Shopify Inc. (NYSE:SHOP) 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 another article, we discussed Shopify Inc. (NYSE:SHOP) and shared the list of most profitable growth stocks to invest in along with the latest market trends. 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.