Baron Asset Fund’s Q4 2023 Investor Letter

Baron Funds, an investment management company, released its “Baron Asset Fund” fourth quarter 2023 investor letter. Declining interest rates and investors’ increasing confidence that there won’t be a hard-landing economic recession were both influenced by moderating inflation and improving labor market conditions. This bullish outlook fueled investor risk-taking and a robust equities market surge throughout the quarter. Against this backdrop, the fund gained 12.45% (Institutional Shares) in the fourth quarter underperforming the Russell Midcap Growth Index’s 14.55% return. Headwinds from the Fund’s style biases, particularly its underexposure to equities with elevated beta and residual volatility, as well as the impact of stock selection, contributed to its relative underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2023.

A copy of Baron Asset Fund’s Q4 2023 investor letter can be downloaded here.