FactSet Research Systems (FDS) Tumbled in Q2 Following the Announcement of the CEO’s Retirement

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund maintained its strong relative performance from the first quarter into the second quarter, with overall performance improving as it completely recovered from the losses experienced earlier, which were related to economic concerns stemming from newly implemented tariffs by the administration. Most of the firm’s company management teams expect the tariffs to have a minimal impact, as costs will likely be shared with suppliers and passed through in small price increases that won’t significantly affect demand. As a result of this clarity, the fund appreciated by 12.78% (Institutional Shares) compared to an 11.31% gain for the Russell 2500 Growth Index. 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 Focused Growth Fund highlighted stocks such as FactSet Research Systems Inc. (NYSE:FDS). FactSet Research Systems Inc. (NYSE:FDS) is a financial data company that provides integrated financial information and analytical applications. The one-month return of FactSet Research Systems Inc. (NYSE:FDS) was -8.66%, and its shares gained 0.11% of their value over the last 52 weeks.  On July 30, 2025, FactSet Research Systems Inc. (NYSE:FDS) stock closed at $409.16 per share, with a market capitalization of $15.469 billion.

Baron Focused Growth Fund stated the following regarding FactSet Research Systems Inc. (NYSE:FDS) in its second quarter 2025 investor letter:

“Within Financials, modest declines from specialty insurer Arch Capital Group Ltd. and investment management tools provider FactSet Research Systems Inc. (NYSE:FDS) weighed on performance, overshadowing strong performance from leading online brokerage house Interactive Brokers Group, Inc. FactSet‘s shares detracted from performance despite above consensus fiscal Q3 earnings and upbeat commentary from management about prospects for the remainder of fiscal 2025. The stock experienced some volatility following the announcement that longtime CEO Phil Snow will retire later this year. However, remarks on a recent earnings call emphasized that this was a personal decision unrelated to company performance. We retain long-term conviction in FactSet given its large addressable market, strong execution across both new product development and financial results, and robust free cash flow generation.”

Oversold but Not Overlooked: Why FactSet (FDS) Deserves a Second Look

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FactSet Research Systems Inc. (NYSE:FDS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held FactSet Research Systems Inc. (NYSE:FDS) at the end of the first quarter, which was 36 in the previous quarter. In the fiscal third quarter of 2025, FactSet Research Systems Inc. (NYSE: FDS) reported GAAP revenues of $586 million, reflecting a year-over-year increase of 5.9%. While we acknowledge the risk and potential of FactSet Research Systems Inc. (NYSE:FDS) 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 FACTSET RESEARCH SYSTEMS INC. (NYSE:FDS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered FactSet Research Systems Inc. (NYSE:FDS) and shared the list of some of the best oversold dividend stocks. 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.