Baron Asset Fund’s Q1 2026 Investor Letter

Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Asset Fund”. U.S. equity markets started the year on a positive note. In February, market dynamics changed due to concerns about AI disruption, accelerated by U.S. and Israeli military action in Iran in March, raising fears of higher oil prices. The Fund declined 7.81% (Institutional Shares) for the quarter, versus a 6.35% decline in the Russell Midcap Growth Index. Performance was adversely impacted by overexposure to the software and services sectors and underexposure to the energy industries. Despite this, the firm remains optimistic about the market recognizing high-quality businesses owned by the Fund, given their resilience against perceived AI threats. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

A copy of Baron Asset Fund’s Q1 2026 investor letter is available to download here.