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 Interactive Brokers Group, Inc. (NASDAQ:IBKR), in the second quarter 2024 investor letter. Founded in 1977, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. The one-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was -4.63%, and its shares gained 28.77% of their value over the last 52 weeks. On August 12, 2024, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $117.93 per share with a market capitalization of $49.862 billion.
Baron FinTech Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q2 2024 investor letter:
“Favorable stock selection in the Capital Markets theme contributed the most to relative performance. Shares of global electronic broker Interactive Brokers Group, Inc. (NASDAQ:IBKR) outperformed due to solid execution with 25% growth in client accounts and 20% growth in revenue. IBKR also benefited from persistently high interest rates as the company earns interest income on customer cash balances.”
A skilled senior trader executing an order in a fast paced trading environment.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. 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.
