Renaissance Large Cap Growth Strategy Sold Marriott International (MAR) Due to Weakening Fundamental Factors

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 Marriott International, Inc. (NASDAQ:MAR). Marriott International, Inc. (NASDAQ:MAR) is a hospitality company operating and franchising hotels, residential, timeshare, and other lodging properties. The one-month return of Marriott International, Inc. (NASDAQ:MAR) was 10.34%, and its shares gained 12.34% of their value over the last 52 weeks. On May 22, 2025, Marriott International, Inc. (NASDAQ:MAR) stock closed at $260.02 per share with a market capitalization of $71.402 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Marriott International, Inc. (NASDAQ:MAR) in its Q1 2025 investor letter:

“Conversely, we sold our position in Marriott International, Inc. (NASDAQ:MAR) following a deterioration in fundamental factors. From a qualitative perspective, we believe that despite solid consumer travel demand and a development pipeline that is conducive to future market share gains, Marriott could face a soft pricing environment as both federal and corporate travel is curtained.”

The iconic entrance of a Marriott hotel, framed by an impressive lobby.

Marriott International, Inc. (NASDAQ:MAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Marriott International, Inc. (NASDAQ:MAR) at the end of the fourth quarter compared to 60 in the third quarter. While we acknowledge the potential of Marriott International, Inc. (NASDAQ:MAR) 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.

In another article, we covered Marriott International, Inc. (NASDAQ:MAR) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q1 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.