Baron Funds, an investment management company, released its “Baron FinTech Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund rose 12.52% (Institutional Shares) compared to a 12.21% return for the FactSet Global FinTech Index (Benchmark) and a 5.89% gain for the S&P 500 index. Since inception, the fund has appreciated 11.63% at an annualized rate, compared to 3.23% for the Benchmark. U.S. stocks increased for the fourth quarter as the Federal Reserve's long-awaited dovish turn was made possible by easing inflation and generally positive economic data supporting the soft landing story. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron FinTech Fund highlighted stocks like Intuit Inc. (NASDAQ:INTU), in the third quarter 2024 investor letter. Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was 12.86%, and its shares gained 25.53% of their value over the last 52 weeks. On November 11, 2024, Intuit Inc. (NASDAQ:INTU) stock closed at $697.35 per share with a market capitalization of $195.46 billion.

Baron FinTech Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q3 2024 investor letter:

"Intuit Inc. (NASDAQ:INTU) is the leading provider of accounting software for small businesses and tax preparation software for individuals and tax professionals. Shares declined due to a slower growth outlook for the Consumer segment (TurboTax) and greater dependence on upselling to drive growth in the Small Business segment (QuickBooks). Nevertheless, the company reported quarterly financial results that exceeded Street expectations and provided fiscal 2025 guidance that called for 12% to 13% revenue growth and 13% to 14% EPS growth. At Intuit’s Investor Day, management expressed confidence in the company’s market positioning and growth potential from selling higher-value services across its two major segments. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities."

A professional tax preparer, using a laptop to complete an income tax return.

Intuit Inc. (NASDAQ:INTU) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the second quarter which was 77 in the previous quarter. In the fiscal fourth quarter, Intuit Inc. (NASDAQ:INTU) delivered $3.2 billion in revenues, up 17% year-over-year. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) 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.