Baron Discovery Fund Increased Its Holdings in indie Semiconductor (INDI) in 2025

Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund focuses on long-term, competitively positioned companies that are well-managed and have significant potential in untapped markets. The letter also addressed the advancements in AI and how humans define themselves in the changing landscape. In Q4, the fund generated a return of 0.19% (Institutional Shares), underperforming the Russell 2000 Growth Index by 1.03 percentage points. Over the entire year, the fund posted a return of 10.96%, while the Index returned 13.01%. The outperformance of low-quality and short-term price momentum-oriented stocks affected the Fund’s focus on long-term valuation metrics. The top 10 holdings comprised 26.7% of the Fund’s net assets, with cash making up 3.3%. The Fund maintains strong optimism and expects a high-growth, low-inflation environment in 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Baron Discovery Fund highlighted Indie Semiconductor, Inc. (NASDAQ:INDI). Indie Semiconductor, Inc. (NASDAQ:INDI) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Indie Semiconductor, Inc. (NASDAQ:INDI) was -4.44%, and its shares lost 10.42% of their value over the last 52 weeks. On February 3, 2026, Indie Semiconductor, Inc. (NASDAQ:INDI) stock closed at $3.66 per share, with a market capitalization of $742.57 million.

Baron Discovery Fund stated the following regarding Indie Semiconductor, Inc. (NASDAQ:INDI) in its fourth quarter 2025 investor letter:

“We bought more Indie Semiconductor, Inc. (NASDAQ:INDI) in the second quarter at an average price of $1.82, down around 55% in the quarter due to concerns about the company’s ability to grow. It ended the year at $3.53.”

Indie Semiconductor Inc. (INDI): Among EV Penny Stock From $10 to Under $1

Indie Semiconductor, Inc. (NASDAQ:INDI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held Indie Semiconductor, Inc. (NASDAQ:INDI) at the end of the third quarter, up from 13 in the previous quarter. While we acknowledge the risk and potential of Indie Semiconductor, Inc. (NASDAQ:INDI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Indie Semiconductor, Inc. (NASDAQ:INDI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Indie Semiconductor, Inc. (NASDAQ:INDI) and shared the list of must-buy penny stocks to invest. In addition, please check out our hedge fund investor letters Q4 2025 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.