Renaissance Investment Management, an investment management company, released its Q4 2024 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. US stocks delivered robust results in the fourth quarter with the S&P 500 reporting positive results for the fifth consecutive quarter. The stocks rose after Trump’s election due to optimism for corporate earnings growth, but December’s hawkish Fed comments dampened enthusiasm by lowering rate cut expectations for 2025. In the fourth quarter, the Russell 1000 Growth gained +7.1%, compared to a 2.4% return for the S&P 500. Large-cap stocks outperformed both mid and small-cap stocks, and Growth significantly outperformed Value. The returns were largely driven by a small group of mega-cap technology companies, as interest in AI-related stocks remains strong. Against this backdrop, the strategy outperformed the S&P 500 and underperformed the Russell 1000 Growth in the fourth quarter. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Large Cap Growth Strategy emphasized stocks such as Pinterest, Inc. (NYSE:PINS). Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was -12.82%, and its shares lost 7.01% of their value over the last 52 weeks. On March 27, 2025, Pinterest, Inc. (NYSE:PINS) stock closed at $32.24 per share with a market capitalization of $21.866 billion.
Renaissance Large Cap Growth Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q4 2024 investor letter:
“We made several changes to the portfolio in the fourth quarter. Most recently, we added a new position in the Communication Services sector in December with Pinterest, Inc. (NYSE:PINS), a leading visual search and discovery platform with a unique curation function that enables users to find and display new ideas and creations that focus on interests such as fashion and home décor among other consumer goods. Since 2022, a new management team has transformed Pinterest into a shopping platform, providing more value and capabilities to advertisers includ ing direct connection with users, resulting in higher profits. In addition, the company was an early adopter of AI to increase personalization, advertising relevance options, and automated processes to increase ease-of-use for smaller advertisers. In the near term, we expect Pinterest to see monetization improvements with upside to Average Revenue Per User (ARPU) and traction in new categories and international markets.”
