Baron Focused Growth Fund’s Q2 2025 Investor Letter

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” second-quarter 2025 investor letter. The Fund maintained its strong relative performance from the first quarter into the second quarter, with overall performance improving as it completely recovered from the losses experienced earlier, which were related to economic concerns stemming from newly implemented tariffs by the administration. Most of the firm’s company management teams expect the tariffs to have a minimal impact, as costs will likely be shared with suppliers and passed through in small price increases that won’t significantly affect demand. As a result of this clarity, the fund appreciated by 12.78% (Institutional Shares) compared to an 11.31% gain for the Russell 2500 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

A copy of Baron Focused Growth Fund’s Q2 2025 investor letter can be downloaded here.