Baron Growth Fund’s Q1 2026 Investor Letter

Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Growth Fund”. The Fund declined 12.06% in the quarter compared to the Fund’s benchmark, the Russell 2000 Growth Index’s -2.81% return. The Russell 3000 Index, which measures the performance of the broad U.S. equity market, declined 3.96% for the quarter. Concerns about AI’s impact on the portfolio affected the Fund’s performance this quarter. Initial declines in the software and information services sectors extended to various industries throughout the period. However, the Fund remains confident in its high-quality portfolio, which is poised to deliver attractive and steady earnings growth. There is minimal evidence suggesting that AI has negatively impacted the fundamentals of the companies the Fund has invested in. As of March 31, 2026, the portfolio consisted of 17 investments, with the top 10 holdings accounting for 96.4% of the Fund’s net assets. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

A copy of Baron Growth Fund’s Q1 2026 investor letter is available to download here.