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Baron Focused Growth Fund’s Q3 2025 Investor Letter

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” third-quarter 2025 investor letter. The Fund delivered strong results in the third quarter, appreciating 4.83% (Institutional Shares); however, the fund underperformed the Russell 2500 Growth Index’s (the Benchmark) 10.73% gain. The fund's underperformance stemmed from concerns over a slowdown in economic growth affecting the fund’s more economically sensitive Consumer Discretionary stocks. Furthermore, the rise in competitive pressures has adversely affected the valuations of a few of its...