Soumya Eswaran
3 min read
In This Article:
Renaissance Investment Management, an investment management company, released its Q1 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The S&P 500 experienced a 4.3% loss in Q1 due to uncertainty in technology stock valuations and US economic policies. However, seven sectors showed positive returns, with Energy, Health Care, and Utilities sectors showing the strongest performance. The S&P 500 has not experienced a significant correction since 2023, which can be expected to occur every couple of years. However, there are still good investment opportunities in high-quality, reasonably priced stocks that have not matched concentrated market indices. The S&P 500 (-4.3%) and Russell 1000 Growth Index (-10%) declined in Q1, with large-cap stocks outperforming smaller-cap stocks and Value outperforming Growth. For the quarter, the strategy exceeded the Russell 1000 Growth benchmark and lagged the S&P 500. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Brown & Brown, Inc. (NYSE:BRO). Headquartered in Daytona Beach, Florida, Brown & Brown, Inc. (NYSE:BRO) provides insurance products and services. The one-month return of Brown & Brown, Inc. (NYSE:BRO) was -5.75%, and its shares gained 24.55% of their value over the last 52 weeks. On May 21, 2025, Brown & Brown, Inc. (NYSE:BRO) stock closed at $110.99 per share with a market capitalization of $31.813 billion.
Renaissance Large Cap Growth Strategy stated the following regarding Brown & Brown, Inc. (NYSE:BRO) in its Q1 2025 investor letter:
"Brown & Brown, Inc. (NYSE:BRO) was another top performer. The stock benefited from the company’s stable and predictable business model, seen as a desirable attribute in the current economic environment. In addition, Brown & Brown currently sees solid pricing trends, which should support near-term growth projections."
A close-up of an insurance product while an employee explains its features to a customer.
Brown & Brown, Inc. (NYSE:BRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Brown & Brown, Inc. (NYSE:BRO) at the end of the fourth quarter compared to 35 in the third quarter. In the first quarter, Brown & Brown, Inc. (NYSE:BRO) reported revenue of $1.4 billion, representing an 11.6% year-over-year. While we acknowledge the potential of Brown & Brown, Inc. (NYSE:BRO) 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 undervalued AI stock set for massive gains.
