Munro Partners, an investment management firm, released its “Munro Global Growth Small & Mid Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the December quarter, the Fund returned 20.9% compared to the MSCI ACWI SMID benchmark return of 8.3%. Global markets’ performance was varied for the quarter when viewed in local terms, with regional disparities in equity market outcomes. The US SMID market showed modest gains, while several other markets, such as those in Europe, Hong Kong, and China, experienced declines. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Munro Global Growth Small & Mid Cap Fund emphasized stocks such as AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ:APP) develops a software-based platform for advertisers to enhance the marketing and monetization of their content. The one-month return of AppLovin Corporation (NASDAQ:APP) was -18.34%, and its shares gained 278.07% of their value over the last 52 weeks. On March 27, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $261.70 per share with a market capitalization of $88.967 billion.
Munro Global Growth Small & Mid Cap Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q4 2024 investor letter:
“Key contributors to perfomance over the quarter were Reddit and AppLovin Corporation (NASDAQ:APP). AppLovin contributed 216bps to Fund performance for the quarter.
AppLovin is a founder-led company based in Palo Alto, California. The Company is a mobile app technology company that provides a platform for developers to help them grow, monetise, and optimise their mobile apps.
With approximately 1.4 billion daily active users within their mobile gaming ecosystem, AppLovin has one of the largest user bases in the world, allowing them to take share within the mobile gaming advertising ecosystem, where its improved Axon 2.0 AI model is generating superior returns on ad spend for its advertisers. Axon 2.0 has seen a meaningful step change for the company’s financials with accelerated revenue growth, as well as expanding margins and free cashflow…” (Click here to read the full text)
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin Corporation (NASDAQ:APP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held AppLovin Corporation (NASDAQ:APP) at the end of the fourth quarter compared to 51 in the third quarter. AppLovin Corporation (NASDAQ:APP) reported strong fourth quarter with total revenue increasing 44% year over year to $1.37 billion and adjusted EBITDA increasing 78% to $848 million, achieving a 62% adjusted EBITDA margin. While we acknowledge the potential of AppLovin Corporation (NASDAQ:APP) 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 AppLovin Corporation (NASDAQ:APP) in another article, where we shared the list of top stocks to buy according to Jericho Capital Asset Management. AppLovin Corporation (NASDAQ:APP) was the greatest contributor to ClearBridge Mid Cap Strategy’s performance during Q4 2024. 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.