Baron Funds, an investment management company, released its “Baron Small Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund was down 0.99% (Institutional Shares) in the quarter trailing the Russell 2000 Growth Index’s 1.70% return and the broader Russell 3000 Index’s 2.63% return. For the year the Fund was up 13.61% compared to 15.15% and 23.81% returns for the indexes. Although the fund’s performance this year did not surpass the benchmark, its long-term results are significantly better. 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 Q4 2024 investor letter. The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is an independent insurance distribution firm that delivers insurance and risk management solutions. The one-month return of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) was 8.84%, and its shares gained 85.64% of their value over the last 52 weeks. On January 30, 2024, The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) stock closed at $41.51 per share with a market capitalization of $2.805 billion.
Baron Small Cap Fund stated the following regarding The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) in its Q4 2024 investor letter:
“Shares of insurance broker The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) gave back some gains (up 61% in 2024) due to weaker financial results and an expected earnings headwind from the loss of an insurance partner. The company reported healthy14% organic revenue growth and modest margin expansion yet missed the Street’s more bullish expectations, which led to a modest cut to full-year EBITDA guidance. In addition, it disclosed the need to replace an insurance partner in 2025, resulting in a 3% to 5% headwind to earnings. Rising interest rates also weighed on shares due to an elevated leverage profile consisting primarily of variable rate debt. We continue to own the stock, as we expect Baldwin to gain market share while expanding margins and reducing leverage over the next several years. It is a neat, fast-growing business that we believe is on the path to being a more important distinctive player in its space.”
A financial analyst presenting a chart of insurance solutions to a boardroom.
The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) at the end of the third quarter which was 11 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 another article, we discussed The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) and shared Baron Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.