Do You Believe in Intuit’s (INTU) Strong Competitive Position?

Baron Funds, an investment management company, released its “Baron FinTech Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 9.26% (Institutional Shares) compared to a 13.82% return for the FactSet Global FinTech Index (Benchmark). Since its inception, the fund has appreciated at an annualized rate of 12.53%, compared to a 4.55% return for the Benchmark. The fund managed gains in a period of heightened volatility. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron FinTech Fund highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was -18.53%, and its shares gained 4.89% of their value over the last 52 weeks. On August 25, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $656.96 per share, with a market capitalization of $183.257 billion.

Baron FinTech Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its second quarter 2025 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 rose after the company reported better-than expected quarterly results and raised its annual guidance. In the most recent quarter, revenue grew 15% and earnings per share grew 18%, with TurboTax revenue exceeding Street expectations due to greater adoption of higher-priced Live assisted services. Revenue growth remained strong in the small business segment despite macroeconomic concerns, and the Credit Karma segment also delivered rapid growth. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities.”

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

Intuit Inc. (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the second quarter, which was 87 in the previous quarter. In the fiscal fourth quarter of 2025, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.8 billion, up 20% year-over-year. While we acknowledge the risk and potential of Intuit Inc. (NASDAQ:INTU) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Intuit Inc. (NASDAQ:INTU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared Baron Durable Advantage Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.