Columbia Threadneedle Investments, an investment management company released its “Columbia Seligman Global Technology Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market rose 2.75% in Q4, bringing its full-year return to 24.51%, as measured by the Russell 1000 Index. The November election result removed investor uncertainty, raising hopes for pro-growth government policies. In addition, U.S. equities remained attractive due to high economic growth.  The fund’s Institutional Class shares returned 7.45% in the quarter, compared to a 4.61% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.

In its fourth quarter 2024 investor letter, Columbia Seligman Global Technology Fund emphasized stocks such as Dropbox, Inc. (NASDAQ:DBX). Dropbox, Inc. (NASDAQ:DBX) offers content collaboration platform. The one-month return of Dropbox, Inc. (NASDAQ:DBX) was -22.28%, and its shares gained 4.34% of their value over the last 52 weeks. On March 12, 2025, Dropbox, Inc. (NASDAQ:DBX) stock closed at $25.25 per share with a market capitalization of $7.407 billion.

Columbia Seligman Global Technology Fund stated the following regarding Dropbox, Inc. (NASDAQ:DBX) in its Q4 2024 investor letter:

"The fund held an overweight position in Dropbox, Inc. (NASDAQ:DBX) relative to the MSCI World Information Technology Index and that position contributed positively to performance following a strong push up for the stock during the quarter. Dropbox has added near sharing features including co-authoring integrations with Microsoft 365. The integration with Microsoft Copilot now gives users the ability to query their Dropbox files directly from within Microsoft Teams. Dropbox has also collaborated with NVIDIA to expand its AI functionality to help improve search accuracy, provide better organization and simplify workflow for customers across its cloud content."

A close-up of a laptop displaying a popular content collaboration platform.

Dropbox, Inc. (NASDAQ:DBX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Dropbox, Inc. (NASDAQ:DBX) at the end of the fourth quarter which was 29 in the previous quarter. Dropbox, Inc.'s (NASDAQ:DBX) total revenue for Q4 increased 1.4% year-over-year to $644 million. While we acknowledge the potential of Dropbox, Inc. (NASDAQ:DBX) 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.

In another article, we discussed Dropbox, Inc. (NASDAQ:DBX) and shared the list of best cheap software stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 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.