Overview
- The fund fell 1.56% in Q4 and finished 2025 down 0.66%, trailing the Russell 2000 Growth Index in a market led by large-cap growth stocks.
- Vertiv was a leading contributor after reporting 29% organic revenue growth and announcing a $1 billion accretive acquisition that broadened its data center services.
- Oddity Tech was a top detractor as peer commentary and credit card data signaled category softness and a potential Il Makiage deceleration, with MethodIQ launch spending adding uncertainty.
- Cognex shares declined on weaker-than-expected forward guidance, though Baron cited a durable competitive moat, a strong balance sheet, and improving margins.
- Q4 portfolio moves included new positions in Neptune Insurance, a private-flood MGA using proprietary underwriting against the NFIP, and Andersen Group, which Baron views as positioned for low double-digit organic revenue growth over the medium term.