Baron Generational Growth Fund’s Q2 2026 Investor Letter

Baron Capital’s Baron Generational Growth Fund® declined 2.51% for the quarter ended June 30, 2026, trailing the Russell 2000 Growth Index’s 25.71% gain and Russell 3000 Index’s 15.44% return. Although the Fund maintains strong underlying earnings growth and solid portfolio fundamentals, returns were impacted by valuation compression as investors shifted towards riskier assets. The Fund was renamed this quarter to Generational Growth Fund to highlight its long-term focus, and has...