Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Growth Fund”. A copy of the letter is available to download here. 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.
In its first-quarter 2026 investor letter, Baron Growth Fund highlighted Kinsale Capital Group, Inc. (NYSE:KNSL). Founded in 2009, Kinsale Capital Group, Inc. (NYSE:KNSL) is a property and casualty insurance company. On May 6, 2026, Kinsale Capital Group, Inc. (NYSE:KNSL) closed at $303.61 per share. One-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was -16.08%, and its shares lost 33.66% over the past 52 weeks. Kinsale Capital Group, Inc. (NYSE:KNSL) has a market capitalization of $7.00 billion.
Baron Growth Fund stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2026 investor letter:
“Shares of specialty insurer Kinsale Capital Group, Inc. (NYSE:KNSL) fell due to concerns about moderating growth amid a cyclical slowdown in the property and casualty insurance industry. In the most recent quarter, gross premium growth slowed because of a drop in large property business, where competition and pricing pressure are most acute. Nevertheless, Kinsale reported quarterly earnings that exceeded Street expectations, driven by higher earned premiums, very low catastrophe losses, and favorable reserve development. We continue to own the stock because we believe Kinsale is well managed and has a long runway for growth in an attractive segment of the insurance market.”
Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of the fourth quarter, up from 26 in the previous quarter. While we acknowledge the risk and potential of Kinsale Capital Group, Inc. (NYSE:KNSL) 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 Kinsale Capital Group, Inc. (NYSE:KNSL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Kinsale Capital Group, Inc. (NYSE:KNSL) and shared the list of fastest-growing financial stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 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.
