Baron Funds, an investment management company, released its “Baron Asset Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities ended the quarter higher primarily due to the market’s strength following Donald Trump’s election as president and the Republican majority in both houses of Congress. While Baron Asset Fund had a difficult fourth quarter, returning -(0.04)% (Institutional Shares) compared to the Russell Midcap Growth Index’s 8.14% return. The firm believes that the relative shortfall was caused by a number of circumstances that would only last temporarily. 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 Asset Fund emphasized stocks such as Vail Resorts, Inc. (NYSE:MTN). Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return Vail Resorts, Inc. (NYSE:MTN) was -7.76%, and its shares lost 27.18% of their value over the last 52 weeks. On February 13, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $166.07 per share, with a market capitalization of $6.217 billion.
Baron Asset Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q4 2024 investor letter:
“Somewhat offsetting the above was solid stock selection in Industrials and Consumer Discretionary, where private rocket and spacecraft manufacturer Space Exploration Technologies Corp. (SpaceX) and global ski resort operator Vail Resorts, Inc. (NYSE:MTN) were the top contributors. Vail’s shares were lifted by a 1% increase in season ski pass units and a 7% increase in revenue. The current ski season launched with more favorable mountain snow conditions, leading to visitor bookings in line with last year’s levels. We expect that robust earnings growth for 2025 and mid-single-digit free cash flow growth should yield attractive returns for investors. Vail has a healthy balance sheet, pays a generous dividend, and trades at a discount to its long-term average multiple.”
An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.
Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the third quarter which was 29 in the previous quarter. The fiscal first quarter of 2025, Vail Resorts, Inc. (NYSE:MTN) recorded a net loss of $172.8 million, down from $175.5 million net loss during the same period the previous year. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) 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 Vail Resorts, Inc. (NYSE:MTN) and shared Conestoga Capital Advisors’ views on the company. Oakmark Global Fund established a position in Vail Resorts, Inc. (NYSE:MTN) during Q4 2024, based on its attractive fundamental outlook. In addition, please check out our hedge fund investor letters Q3 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.