Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund appreciated 13.55% (Institutional Shares), outperforming the 8.41% return for the Russell 2000 Growth Index. Year-to-date, the fund returned 9.50% compared to the index’s 13.22% return. The firm was pleased with the fund’s performance in the third quarter and believes that the bear market in small-cap growth stocks, which began in February 2021, may finally end. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baron Discovery Fund highlighted stocks like Chart Industries, Inc. (NYSE:GTLS) in its Q3 2024 investor letter. Chart Industries, Inc. (NYSE:GTLS) engages in the designing, engineering, and manufacturing of process technologies and equipment for gas and liquid molecules. The one-month return of Chart Industries, Inc. (NYSE:GTLS) was 30.43%, and its shares gained 44.34% of their value over the last 52 weeks. On November 6, 2024, Chart Industries, Inc. (NYSE:GTLS) stock closed at $166.01 per share with a market capitalization of $7.107 billion.
Baron Discovery Fund stated the following regarding Chart Industries, Inc. (NYSE:GTLS) in its Q3 2024 investor letter:
“Chart Industries, Inc. (NYSE:GTLS) is a global leader in the design, engineering, and manufacturing of process and storage technologies and equipment for gas and liquid handling. Shares of Chart fell during the quarter as the company missed earnings expectations on revenue recognition timing and lowered full-year guidance. Despite this, fundamentals for the business continue to be very strong, with record revenue, backlog, and margins in the quarter and strong orders, with a book-to-bill greater than one. The issues for the stock continue to be self-inflicted, with management setting too-high expectations and continuing to need to cut them back. After several conversations with management, we believe that they will better set expectations moving forward. Chart is unique in its breadth of technology and solutions capabilities with EBITDA margins growing double digits in long-duration secular growth markets (LNG, hydrogen, carbon capture, water treatment, etc.), and we believe as the near-term expectations-related issues subside, the company will earn the valuation we believe it deserves, driving significant near- and long-term upside in the stock.”
An extensive industrial gas facility with many storage tanks.
Chart Industries, Inc. (NYSE:GTLS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Chart Industries, Inc. (NYSE:GTLS) at the end of the second quarter which was 48 in the previous quarter. While we acknowledge the potential of Chart Industries, Inc. (NYSE:GTLS) 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 Chart Industries, Inc. (NYSE:GTLS) and shared the list of best industrial stocks to buy according to analysts. 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.