Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2024 investor letter. A copy can be downloaded here. The fund returned -6.43% (Institutional Shares) in the quarter trailing the Russell 2000 Growth Index’s -2.92 % return and the broader Russell 3000 Index’s 3.22% return. The technology-heavy NASDAQ Composite Index and the broader indices hit record highs in the second quarter. Still, the rally was extremely focused and narrow, with the mega-cap Magnificent Seven’s consistently excellent performance accounting for all of the larger-cap index gains while small-cap stocks declined. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baron Small Cap Fund highlighted stocks like The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) in its Q2 2024 investor letter. The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) independent insurance distribution firm that delivers insurance and risk management solutions. In May 2024, BRP Group, Inc. changed its name to The Baldwin Insurance Group, Inc. (NASDAQ:BWIN). The one-month return of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) was 12.93%, and its shares gained 65.58% of their value over the last 52 weeks. On August 5, 2024, The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) stock closed at $41.13 per share with a market capitalization of $2.72 billion.
Baron Small Cap Fund stated the following regarding The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) in its Q2 2024 investor letter:
“Insurance broker The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) reported first quarter organic revenue growth of 16%, and EBITDA margins expanded meaningfully year-over-year, leading to EBITDA growth of 29%. Margin improvement is expected to continue as the company leverages recent growth investments and focuses on efficiency after years of acquisitions. Also, during the quarter, the company refinanced a portion of its debt, resulting in lower borrowing costs and extended maturities. After a few years of subpar profit growth and the digestion of significant acquisitions, we believe Baldwin is now poised to show more consistent margin progression and free cash flow generation, and garner a higher multiple on compounding earnings.”
A closeup of a specialist in a suit preparing to finalise an insurance policy.
The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) at the end of the first quarter which was 10 in the previous quarter. While we acknowledge the potential of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) 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 addition, please check out our hedge fund investor letters Q2 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.