Should You Consider Adding RH (RH) to Your Portfolio?

Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund (Institutional Shares) returned 4.57% underperforming the 7.58% return for the Russell 2000 Growth Index. The firm is optimistic about the Fund’s prospects for 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Discovery Fund featured stocks like RH (NYSE:RH) in the first quarter 2024 investor letter. Headquartered in Corte Madera, California, RH (NYSE:RH) is a retailer in the home furnishings market. On May 14, 2024, RH (NYSE:RH) stock closed at $290.69 per share. One-month return of RH (NYSE:RH) was 19.27%, and its shares gained 12.41% of their value over the last 52 weeks. RH (NYSE:RH) has a market capitalization of $2.33 billion.

Baron Discovery Fund stated the following regarding RH (NYSE:RH) in its first quarter 2024 investor letter:

“During the quarter, we added to our position in RH (NYSE:RH), a high-end retailer of home furnishings and furniture that has a unique vision to transform from a domestic furniture company to a global luxury brand. Shares were pressured in the earlier part of the quarter due to shorter-term concerns regarding demand amid a volatile macroeconomic environment. Despite these short-term pressures, we remain confident in RH’s ability to gain market share in the fragmented high-end furnishings market, and we see a multi-year growth pipeline driven by store expansion around the globe. We also believe that RH will see improvements in profitability as the brand returns to a fuller-priced sales environment, and as it begins to scale its early international investments.”

A family selecting a wood and wire closet organization in a home improvement store.

RH (NYSE:RH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held RH (NYSE:RH) at the end of the fourth quarter which was 49 in the previous quarter.

In another article we discussed RH (NYSE:RH) and shared the list of best high beta stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.