Renaissance Investment Management, an investment management company, released its Q4 2024 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. US stocks delivered robust results in the fourth quarter with the S&P 500 reporting positive results for the fifth consecutive quarter. The stocks rose after Trump’s election due to optimism for corporate earnings growth, but December’s hawkish Fed comments dampened enthusiasm by lowering rate cut expectations for 2025. In the fourth quarter, the Russell 1000 Growth gained +7.1%, compared to a 2.4% return for the S&P 500. Large-cap stocks outperformed both mid and small-cap stocks, and Growth significantly outperformed Value. The returns were largely driven by a small group of mega-cap technology companies, as interest in AI-related stocks remains strong. Against this backdrop, the strategy outperformed the S&P 500 and underperformed the Russell 1000 Growth in the fourth quarter. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Large Cap Growth Strategy emphasized stocks such as Booz Allen Hamilton Holding Corporation (NYSE:BAH). Booz Allen Hamilton Holding Corporation (NYSE:BAH) offers management and technology consulting services to governments, corporations, and not-for-profit organizations. The one-month return of Booz Allen Hamilton Holding Corporation (NYSE:BAH) was -0.19%, and its shares lost 28.68% of their value over the last 52 weeks. On March 27, 2025, Booz Allen Hamilton Holding Corporation (NYSE:BAH) stock closed at $105.86 per share with a market capitalization of $13.41 billion.
Renaissance Large Cap Growth Strategy stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its Q4 2024 investor letter:
“Another underperformer was Booz Allen Hamilton Holding Corporation (NYSE:BAH). For the most part, defense-related stocks reacted negatively after the Wall Street Journal reported the new Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy, will look at unnecessary and wasteful spending in the U.S. Department of Defense’s budget, which could have a negative impact on overall Defense spending. However, we believe that Booz Allen Hamilton is an essential government service provider. The company is focused on upgrading the Defense Department’s technology infrastructure, protecting against cybersecurity threats, and building a platform to ultimately utilize artificial intelligence applications.”

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Booz Allen Hamilton Holding Corporation (NYSE:BAH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Booz Allen Hamilton Holding Corporation (NYSE:BAH) at the end of the fourth quarter compared to 32 in the third quarter. In the fiscal third quarter of 2025, Booz Allen Hamilton Holding Corporation (NYSE:BAH) achieved a 14% year-over-year revenue increase to $2.9 billion, with organic revenue up 13% and revenue excluding billable expenses rising 12%. This performance highlights the company’s strong growth in government and commercial markets. While we acknowledge the potential of Booz Allen Hamilton Holding Corporation (NYSE:BAH) 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.
We covered Booz Allen Hamilton Holding Corporation (NYSE:BAH) in another article, where we shared the list of high-flying AI stocks in the third week of March. In addition, please check out our hedge fund investor letters Q4 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.