Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund experienced an excellent quarter to end another successful year. The fund increased 11.7% (Institutional Shares) in the fourth quarter compared to a 7.1% gain for the Russell 1000 Growth Index and a 2.4% increase for the S&P 500 Index. For the full year, the fund returned 37.8% compared to 33.4% and 25.0% gains for the indexes. 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 Fifth Avenue Growth Fund emphasized stocks such as Mobileye Global Inc. (NASDAQ:MBLY). Mobileye Global Inc. (NASDAQ:MBLY) develops and implements advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions. The one-month return of Mobileye Global Inc. (NASDAQ:MBLY) was -1.02%, and its shares lost 34.78% of their value over the last 52 weeks. On February 24, 2025, Mobileye Global Inc. (NASDAQ:MBLY) stock closed at $64.12 per share with a market capitalization of $9.978 billion.
Baron Fifth Avenue Growth Fund stated the following regarding Mobileye Global Inc. (NASDAQ:MBLY) in its Q4 2024 investor letter:
“During the quarter, we also bought back our shares in Mobileye Global Inc. (NASDAQ:MBLY), a leading provider of advanced driver-assistance systems (ADAS) and autonomous driving technologies for the automotive industry. Last year was a particularly challenging year for the company, as it was impacted by cyclical headwinds due to inventory build-up as well as market share losses in China. We believe the company is making progress in its advanced solution portfolio. We were encouraged that the Volkswagen Group signed contracts for 18 different models across brands such as Audi, Bentley, Lamborghini, and Porsche. We maintain our belief that the autonomous vehicle market is substantial and strategically important. Despite recent challenges, we believe that Mobileye can be a key supplier as the market matures and the undemanding valuation creates an attractive risk/reward for long-term investors.”
A driverless vehicle navigating city traffic, equipped with ADAS and safety features.
Mobileye Global Inc. (NASDAQ:MBLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Mobileye Global Inc. (NASDAQ:MBLY) at the end of the fourth quarter compared to 33 in the third quarter. While we acknowledge the potential of Mobileye Global Inc. (NASDAQ:MBLY) 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 Mobileye Global Inc. (NASDAQ:MBLY) and shared the top trending AI news updates investors should not miss. 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.