Strong Momentum Lifted Vertiv Holdings Co (VRT) in Q3

Baron Funds, an investment management company, released its “Baron Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, the fund was up 0.54% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) 12.19% return. Year to date, the Fund is up 0.91% compared to the index’s 11.65% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-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 8.29%, and its shares gained 45.54% of their value over the last 52 weeks. On November 6, 2025, Vertiv Holdings Co (NYSE:VRT) stock closed at $183.02 per share, with a market capitalization of $69.976 billion.

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

“Vertiv Holdings Co (NYSE:VRT), a leading provider of critical digital infrastructure solutions for data centers, reported strong earnings and raised guidance, supported by robust momentum in the data center end market, particularly as increased AI-related activity drives elevated demand. We continue to hold Vertiv as we believe the company is well positioned to benefit from the ongoing buildout of AI data centers, especially through the adoption of liquid cooling technologies, which are increasingly necessary as data center energy intensity continues to rise.”

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

Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 104 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the second quarter, up from 90 in the previous quarter. In the third quarter of 2025, Vertiv Holdings Co’s (NYSE:VRT) organic sales grew 28% year-over-year. 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 the list of stocks with best earnings growth for the next 5 years. In addition, please check out our hedge fund investor letters Q3 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.