Here’s What Boosted Vertiv Holdings Co (VRT) 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 Vertiv Holdings Co. (NYSE:VRT). Vertiv Holdings Co. (NYSE:VRT) provides critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co. (NYSE:VRT) was 13.05%, and its shares gained 95.06% of their value over the last 52 weeks. On August 7, 2025, Vertiv Holdings Co. (NYSE:VRT) stock closed at $139.39 per share, with a market capitalization of $53.228 billion.

Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its second quarter 2025 investor letter:

“Vertiv Holdings Co (NYSE:VRT), a leading provider of cooling, power, and IT management solutions for data centers, contributed to performance during the quarter. The stock rallied nearly 80% in the second quarter as the market grew more confident in the durability of data center investment, particularly AI infrastructure, especially amid concerns of a slowdown and tariff impacts just a few months ago. Vertiv is deeply embedded in its customers’ technology roadmaps and stands to benefit as AI data centers become increasingly complex and require more advanced power and cooling solutions. Vertiv remains a top holding as it maintains a strong competitive advantage and is well positioned for multi-year growth. We believe Vertiv can grow its EBITDA at strong double-digit rates for the foreseeable future, and the stock can compound from here.”

Vertiv Holdings Co (VRT) Will Benefit From Data Center Spending, Says Jim Cramer

A close-up of a group of technicians working on complex data center systems.

Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the first quarter, which was 92 in the previous quarter. While we acknowledge the risk and potential of Vertiv Holdings Co (NYSE:VRT) 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 Vertiv Holdings Co (NYSE:VRT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Vertiv Holdings Co (NYSE:VRT) and shared top AI stocks taking Wall Street by storm. 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.