Baron Funds, an investment management company, released its “Baron Partners Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Baron Partners Fund demonstrated a strong performance in the final quarter of 2024 and significantly exceeded the Index’s returns over the previous year and outperformed the Russell Midcap Growth Index in the quarter. The Fund rose 27.05% (institutional Shares) in the quarter significantly outperforming advances in the Index and the large-cap dominated Russell 3000 Index (the Market Index), which gained 8.14% and 2.63%, respectively. The Fund gained 33.08% in 2024 while the Index and the Market Index returned 22.10% and 23.81%, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Baron Partners Fund emphasized stocks such as Tesla, Inc. (NASDAQ:TSLA). Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -16.57%, and its shares gained 77.96% of their value over the last 52 weeks. On February 14, 2025, Tesla, Inc. (NASDAQ:TSLA) stock closed at $355.84 per share with a market capitalization of $1.145 trillion.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles, related software and components, and solar and energy storage products. Shares rose on growth in the energy segment, the promise of new model launches in 2025, and increasing investor confidence in Tesla’s AI initiatives. Despite macroeconomic challenges, delivery data in major markets like China have shown considerable improvement. The energy and automotive segments demonstrated stronger-than-expected profitability. Tesla also expanded its advanced computing center in Texas, released improved version of its software-enhanced driving solution, and is set to launch new mass market vehicles years after the initial rollouts of Models 3 and Y. Expectations of deregulation under the incoming administration point to the potential acceleration of new technology rollouts, which could enhance Tesla’s leadership position in real world AI and bolster investor confidence that Tesla will benefit from these large and attractive growth opportunities.”
Tesla, Inc. (NASDAQ:TSLA) is in 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter which was 85 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 Tesla, Inc. (NASDAQ:TSLA) and shared the list of best EV stocks to buy for the long term. 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.