Baron Funds, an investment management company, released its “Baron FinTech Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. For the fifth consecutive quarter, U.S. stocks increased, with most of the gains coming in November after the U.S. elections, which saw Republicans secure majorities in both chambers of Congress and President Donald Trump re-elected. In the fourth quarter, the fund rose 5.29% (Institutional Shares) compared to a 4.24% return for the FactSet Global FinTech Index (Benchmark) and a 2.41% gain for the S&P 500 index. Since inception, the fund has appreciated at an annualized rate of 12.17%, compared to 3.93% for the Benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Baron FinTech Fund emphasized stocks such as Apollo Global Management, Inc. (NYSE:APO). Apollo Global Management, Inc. (NYSE:APO) is a private equity firm that specializes in investments in credit, private equity and real estate markets. The one-month return of Apollo Global Management, Inc. (NYSE:APO) was -5.11%, and its shares gained 46.66% of their value over the last 52 weeks. On February 19, 2025, Apollo Global Management, Inc. (NYSE:APO) stock closed at $160.27 per share with a market capitalization of $90.68 billion.
Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q4 2024 investor letter:
“Alternative asset manager Apollo Global Management, Inc. (NYSE:APO) contributed to performance. The company held a well-received Investor Day during which management highlighted the firm’s expansive credit management capabilities and introduced bullish five-year growth targets. Apollo also participated in the broader rally of financial stocks spurred by the Republican elections sweep, which has bolstered expectations for greater capital markets activity and looser regulations. Investors expect a more business-friendly administration will support growth initiatives for alternative managers, including plans to introduce private investments into retirement accounts. Finally, Apollo was added to the S&P 500 Index during the quarter, which prompted passive buying of the shares. We remain invested due to Apollo’s long-term growth prospects, formidable competitive advantages, and strong management team.”
A team of professional financial investors in a modern office analyzing Investment opportunities.
Apollo Global Management, Inc. (NYSE:APO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Apollo Global Management, Inc. (NYSE:APO) at the end of the third quarter which was 2 in the previous quarter. While we acknowledge the potential of Apollo Global Management, Inc. (NYSE:APO) 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 Apollo Global Management, Inc. (NYSE:APO) and shared the list of high growth financial stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.