Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Global Opportunity Fund”. A copy of the letter can be downloaded here. Baron Global Opportunity Fund showcased a strong fourth quarter and an outstanding year. The Fund rose 6.5% (Institutional Shares) in Q4 compared to 3.3% return for the MSCI ACWI Index (the Index) and the 2.8% gain for the MSCI ACWI Growth Index, the Fund’s benchmarks. For 2025, the Fund was up 27.5%, exceeding 22.3% and 22.4% returns for benchmarks, respectively. For the Fund, the year has been defined by the challenges of de-globalization and the support from easing Federal Reserve policies, the beginnings of the AI investment cycle, and its investment in SpaceX. The Fund concluded the year with 42 investments, up from 38 the previous year, with 35 stocks accounting for 99.3% of its net assets. 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 Global Opportunity Fund highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology and retail company known for its leading online marketplace and cloud platform. On January 16, 2026, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $216.82 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 5.28%, and its shares gained 3.57% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $2.328 trillion.
Baron Global Opportunity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2025 investor letter:
“Our biggest purchase during the fourth quarter was Amazon.com, Inc. (NASDAQ:AMZN). We have owned the stock in the past and bought it back as we believe that AI is likely to improve Amazon’s growth profile, create margin tailwinds over time, and increase the likelihood of the stock becoming a Big Idea once again. CEO Andy Jassy has emphasized that we are at a key inflection point with AI7: “Generative AI is going to reinvent virtually every customer experience we know, and enable altogether new ones about which we’ve only fantasized… It’s moving faster than almost anything technology has ever seen.”
First, we believe that AWS will be able to utilize its leading positioning in the cloud services market to generate substantial revenues from AI-related business. AWS described how it’s “aggressively investing in capacity because we see the demand8″ for AI infrastructure, adding 3.8 gigawatts of capacity in the last 12 months, doubling its capacity compared with 2022, and they intend to double it again by 2027. Amazon’s full-stack strategy from infrastructure through models and applications, will allow enterprises and startups to build AI solutions fully on AWS, with the data gravity of existing customers serving as an additional incentive to stay on AWS. AWS is focused on offering cost-effective AI infrastructure with both in-house custom AI chips (Trainium 2 is already a “multi-billion dollar business and growing 150% sequentially” with Trainium 3 expected to be “40% better than Trainium 2”) and NVIDIA chips for stronger performance. Next, AWS provides an accessible inference platform via Amazon Bedrock, offering access to leading AI models from partners like Anthropic to over 100,000 customers who already have their data stored within the AWS ecosystem. Finally, AWS offers crucial tooling and algorithms like AgentCore and Amazon Q to help customers build useful AI agents with the necessary security guardrails. All together, we believe AWS growth can accelerate to over 20% CAGR for the next five years…” (Click here to read the full text)
Amazon.com, Inc. (NASDAQ:AMZN) is in top position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 381 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter, up from 332 in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) delivered $213.4 billion in revenue for the fourth quarter of fiscal 2025, an increase of 12% year over year, excluding the impact from foreign exchange rates. While we acknowledge the risk and potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared a list of best WallStreet bets stocks to buy according to analysts. 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.
