Sands Capital, an investment management company, released its “Sands Capital Select Growth Fund” Q4 2024 investor letter. A copy of the same can be downloaded here. Select Growth primarily targets U.S. companies that are leading the way in crucial areas of positive structural transformation within the economy. The fund returned 8.8% (net) in the fourth quarter compared to 7.1% return for the benchmark, the Russell 1000 Growth Index. The fund returned 24.3% over the one year period compared to 33.4% return for the Index. You can check the fund’s top 5 holdings to know more about its best picks for 2024.

In its fourth quarter 2024 investor letter, Sands Capital Select Growth Fund emphasized stocks such as Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) develops and operates an immersive platform for connection and communication.  The one-month return of Roblox Corporation (NYSE:RBLX) was -6.97%, and its shares gained 58.57% of their value over the last 52 weeks. On March 31, 2025, Roblox Corporation (NYSE:RBLX) stock closed at $58.29 per share with a market capitalization of $38.9 billion.

Sands Capital Select Growth Fund stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q4 2024 investor letter:

"Business: Roblox Corporation (NYSE:RBLX) is a leading gaming development and distribution platform.

Key issues: Product safety and impact, health and safety.

As a leading platform for user-generated content with a significant user base of children under the age of 13, Roblox plays a pivotal role in defining safety and civility standards for online interactions. While content moderation challenges are not unique to Roblox, its scale and user demographics demand heightened scrutiny and accountability.

Before initiating a position in the company, we sought to understand how the company addresses online safety, fosters trust, and leverages technology to create a secure environment for its users. By assessing Roblox’s initiatives and progress, we aimed to ensure alignment with best practices in safety and compliance while safeguarding its long term reputation and stakeholder trust.

Commitment to Safety and Civility: Safety and civility are foundational principles for Roblox and are championed by founder and CEO David Baszucki. The platform enforces strict safety measures, especially for users under 13, such as filtering non-dictionary words, slang, and personal information in text communication. Roblox prohibits photo- and video-sharing and provides real-time feedback for policy violations in voice communication, resulting in significantly improved civility on the platform..." (Click here to read the full text)

A person taking lessons through Roblox Education, expanding their knowledge and skills.

Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the fourth quarter compared to 52 in the third quarter. Roblox Corporation's (NYSE:RBLX) Q4 revenue reached $988 million, reflecting a 32% increase year-on-year and exceeding the high end of guidance, which was set at $960 million. While we acknowledge the potential of Roblox Corporation (NYSE:RBLX) 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 cheapest AI stock.

We covered Roblox Corporation (NYSE:RBLX) in another article, where we shared the list of best gaming stocks to invest in according to billionaires. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.