Baron Funds, an investment management company, released its “Baron Partners Fund” second quarter 2024 investor letter. The fund rose modestly in the second quarter and exceeded its primary benchmark, the Russell Midcap Growth Index. A copy of the letter can be downloaded here. The Fund rose 1.02% (institutional Shares) in the quarter and the index declined 3.21%. The fund owns competitively advantaged, well-managed, principally publicly owned, growth businesses. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Baron Partners Fund highlighted stocks like Tesla, Inc. (NASDAQ:TSLA), in the second quarter 2024 investor letter. Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -23.02%, and its shares lost 15.23% of their value over the last 52 weeks. On August 12, 2024, Tesla, Inc. (NASDAQ:TSLA) stock closed at $197.49 per share with a market capitalization of $630.909 billion.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
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Tesla, Inc. (NASDAQ:TSLA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter which was 82 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 Tesla, Inc. (NASDAQ:TSLA) and shared Cathie Wood’s favorite AI stocks. Tesla, Inc. (NASDAQ:TSLA) negatively impacted Baron Fifth Avenue Growth Fund during Q1 2024. In addition, please check out our hedge fund investor letters Q2 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.
