Baron Funds, an investment management company, has released its Investor Letter for the first quarter of 2024 for the Baron Partners Fund. A copy of the letter can be downloaded here. The first quarter of 2024 was disappointing for the fund. The fund fell 9.01% (institutional shares) for the quarter, underperforming the major benchmarks, the Russell Mid-Cap Growth Index (Index) and the large-cap S&P 500 Index (returns of 9.50% and 10.56%, respectively). Over the past three years, the fund has not made much progress. However, the fund continues to outperform in the long term, both absolutely and relatively. Annualized returns over the past five, 10, and 15 years are 25.16%, 17.37%, and 20.45%, respectively, compared to the index’s annualized returns of 11.82%, 11.35%, and 15.64%, respectively. Additionally, to find out the best picks for 2024, check out the fund’s top five holdings.
Baron Partners Fund highlighted stocks such as Hyatt Hotels Corporation (NYSE:H) in its Investor Letter for Q1 2024. Hyatt Hotels Corporation (NYSE:H) is a hospitality company. Hyatt Hotels Corporation (NYSE:H) has a one-month return of -2.57% and has risen 28.88% over the past 52 weeks. On May 31, 2024, Hyatt Hotels Corporation (NYSE:H) stock closed at $147.47 per share, with a market capitalization of $14.921 billion.
In its Q1 2024 investor letter, Baron Partners Fund said the following about Hyatt Hotels Corporation (NYSE: H):
“World Hoteliers’ Stock Hyatt Hotels Corporation (NYSE:H) shares rose during the quarter due to continued progress toward transitioning to an asset-light business. Currently, 85% of revenue is derived from management and franchise fees. This progress, along with the sale of the subscription-based Unlimited Vacation Club (while retaining the management agreement), will result in more consistent and predictable revenue. Strong growth in revenue per room and a steadily expanding share of the developer pipeline should enable Hyatt to generate strong free cash flow and achieve low double-digit EBITDA growth. Hyatt’s strong, low-debt balance sheet positions it to increase dividends and share repurchases.”
Located in the bustling city centre, this luxury hotel showcases the hospitality group’s high standards of quality.
Hyatt Hotels Corporation (NYSE:H) is not included in our list of the 30 most popular stocks among hedge funds. According to our database, 28 hedge fund portfolios held Hyatt Hotels Corporation (NYSE:H) at the end of the first quarter, up from 22 in the previous quarter. Hyatt Hotels Corporation’s (NYSE:H) systemwide RevPAR increased 5.5% in the first quarter, driven primarily by demand from international markets.
In another article, we covered Hyatt Hotels Corporation (NYSE:H) and shared a list of stocks that have been downgraded by analysts. Hyatt Hotels Corporation (NYSE:H) was one of the major contributors to the Baron Focused Growth Fund last quarter. The stock price rose during the quarter due to strong demand. Additionally, to learn more about investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q1 2024 page.
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Disclosures: None. This article originally appeared on Insider Monkey.
