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Here’s Why Baron FinTech Fund Trimmed Accenture plc (ACN)

Baron Funds, an investment management company, released its “Baron FinTech Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund declined 2.25% (Institutional Shares) compared to a (5.78)% return for the FactSet Global FinTech Index (Benchmark) and a 4.28% gain for the S&P 500 index. US equities rose with major market indices reaching all-time highs during the second quarter. Overwhelming corporate results were accompanied by mixed economic data that points to further moderation of inflation. However, the rally was concentrated and driven by mega-cap technology companies. The fund’s smaller market cap profile and lack of exposure to the Magnificent Seven led the fund to underperform the broader market. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron FinTech Fund highlighted stocks like Accenture plc (NYSE:ACN), in the second quarter 2024 investor letter. Accenture plc (NYSE:ACN) is a professional services company. The one-month return of Accenture plc (NYSE:ACN) was -0.64%, and its shares gained 1.32% of their value over the last 52 weeks. On August 9, 2024, Accenture plc (NYSE:ACN) stock closed at $315.83 per share with a market capitalization of $197.831 billion.

Baron FinTech Fund stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2024 investor letter:

“We trimmed Accenture plc (NYSE:ACN) and Globant S.A. due to continued weak demand for IT services. Business customers are spending on cost-optimization projects, while discretionary spending on revenue-generating projects remains under pressure. We had expected GenAI excitement to be a more meaningful contributor to demand by now, but GenAI-related projects represent a small portion of revenue, AI infrastructure spending is crowding out software spending, and uncertainty about the impact of GenAI is likely causing delays in client decision-making. We believe most of these issues are temporary and expect growth to eventually improve, but we redeployed the proceeds from these sales into higher conviction ideas.”

A team of data experts gathered around a computer monitor analyzing customer data.

Accenture plc (NYSE:ACN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter which was 58 in the previous quarter. Accenture plc’s (NYSE:ACN) revenues for the third quarter of fiscal 2024 were $16.5 billion, a 1% decline in US dollars. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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 Accenture plc (NYSE:ACN) and shared the list of best consulting stocks to buy. Aristotle Atlantic Core Equity Strategy sold its stake in Accenture plc (NYSE:ACN) during Q2 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.

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.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

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That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

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Next Big AI Investment Found

In my 25 years as an investing advisor, I have seen a market opportunity that has quite as much potential as the AI megatrend… and, within that trend, I have never seen a company quite as spectacular as the one I am about to put before you.

You’ve seen the tremendous potential of AI stocks over the last 18 months — in fact, AI stocks have created generational wealth practically overnight.

In the face of recent market volatility and the impact of Japan’s unexpected rate hike in late July/early August, AI stocks are still strong performers, with some investors seeing triple-digit gains.

A few of the top performing AI stocks include household names like:

  • Nvidia (NYSE: NVDA): Nvidia has been the most visible winner in the AI sector over the last year, thanks to its cutting-edge graphics processing units (GPUs) and AI chips and first mover advantage. The company’s stock has seen gains of more than 223.67% from June 2023.
  • Palantir Technologies (NYSE: PLTR): Known for its big data analytics and deep connections with the defense sector, Palantir has seen massive growth in both government and commercial revenues. The company’s stock has soared by 263.4% in the last 18 months.
  • Symbotic (NASDAQ: SYM): This AI-enabled robotics company has shown impressive growth as well. The company has recently reported significant revenue increases and a sizeable backlog of projects… and investors are responding. Its stock shot up by 244.47% since December 2022.

But, in my opinion, those “household names” are just the tip of the iceberg… which is why I’m recommending that my subscribers begin their due diligence immediately on the company I am about to reveal.

Click to continue reading…