Baron Small Cap Fund Sold its Position in Utz Brands (UTZ) in Q2

Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, the fund was up 10.38%% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) 11.97% return. Year to date, the Fund is up 0.36% compared to the index’s (0.48)% return. Small-cap stocks recovered well during the quarter and performed in line with the overall market but have significantly trailed larger-cap stocks this year. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as Utz Brands, Inc. (NYSE:UTZ). Utz Brands, Inc. (NYSE:UTZ) is a U.S.-based snack foods manufacturer. The one-month return of Utz Brands, Inc. (NYSE:UTZ) was 8.20%, and its shares lost 22.65% of their value over the last 52 weeks. On August 8, 2025, Utz Brands, Inc. (NYSE:UTZ) stock closed at $12.77 per share, with a market capitalization of $1.101 billion.

Baron Small Cap Fund stated the following regarding Utz Brands, Inc. (NYSE:UTZ) in its second quarter 2025 investor letter:

“We sold our position in Utz Brands, Inc. (NYSE:UTZ). Sales and earnings are growing slower than we had originally expected, with a more intense promotional and competitive environment along with weaker consumer spending. We don’t see a reversal of those trends soon, so on to better ideas.”

20 Biggest Snack Companies in the World

Close-up of a hand holding a bowl full of freshly cooked salty snacks.

Utz Brands, Inc. (NYSE:UTZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Utz Brands, Inc. (NYSE:UTZ) at the end of the first quarter, which was 15 in the previous quarter. While we acknowledge the risk and potential of Utz Brands, Inc. (NYSE:UTZ) 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 Utz Brands, Inc. (NYSE:UTZ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 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.