The Baldwin Insurance Group (BWIN) Declined on Lowering Guidance

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 The Baldwin Insurance Group, Inc. (NASDAQ:BWIN). The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is an independent insurance distribution firm that delivers insurance and risk management solutions. The one-month return of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) was -10.23%, and its shares lost 44.02% of their value over the last 52 weeks. On November 6, 2025, The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) stock closed at $25.79 per share, with a market capitalization of $1.846 billion.

Baron Small Cap Fund stated the following regarding The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) in its third quarter 2025 investor letter:

“Shares of insurance broker The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) fell after the company trimmed full-year guidance to reflect softer pricing for property insurance and slower business from construction customers. This mirrors the broader pullback in insurance stocks during the quarter amid expectations for a cyclical slowdown in industry pricing and premium growth. Management reaffirmed its goal of reaching $3 billion in revenue and 30% EBITDA margins within five years, implying that earnings could nearly triple. We remain shareholders and expect the company to continue gaining market share while expanding margins and reducing leverage over the next several years.”

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The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 10 hedge fund portfolios held The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) at the end of the second quarter, up from 9 in the previous quarter. While we acknowledge the risk and potential of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) 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 The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) and shared the list of oversold financial stocks to buy according to hedge funds. 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.