Renaissance Investment Management, an investment management company, released its Q2 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The stock market experienced significant volatility in the second quarter, and yet, the S&P 500 posted an all-time high by the end of June. The liberation day tariff announcement set off havoc in the market, causing stock prices to drop 7% from April 2 to April 7. However, the market rebounded and gained more than 22% from the April 7 low through the end of June. The Russell 1000 Growth returned 17.8% and the S&P 500 returned 10.9% in the quarter. Large caps significantly outperformed their small-cap counterparts, and growth outperformed value. Against this backdrop, the strategy outperformed the S&P 500 Index but underperformed the Russell 1000 Growth benchmark. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its second-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 2.05%, and its shares gained 2.96% of their value over the last 52 weeks. On September 09, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $234.35 per share, with a market capitalization of $3.478 trillion.
Renaissance Large Cap Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:
“Apple Inc. (NASDAQ:AAPL) declined in the quarter. Despite reporting solid operating results, the stock came under pressure over concerns about decelerating iPhone sales, China growth headwinds, and underwhelming details for Apple’s long-awaited AI strategy. Tariffs were also an unexpected negative surprise, with Apple quantifying a sizable $900M cost impact. Moreover, the latest development in the Apple vs. Epic Games lawsuit resulted in a ruling that Apple had violated an earlier injunction, questioning Apple’s absolute control over its App Store.”
Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, which was 159 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $94 billion in the June quarter, reflecting a 10% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.