The Baldwin Insurance Group (BWIN) Grows Amid Positive Operating Trends and Stablility of Insurance Stocks

Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, the fund was down 9.07% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) -11.12% return. Small-cap stocks continued to underperform larger market caps meaningfully, so the Fund lagged the Russell 3000 Index, which fell 4.72% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-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 -10.02%, and its shares gained 12.83% of their value over the last 52 weeks. On May 23, 2025, The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) stock closed at $38.00 per share with a market capitalization of $2.684 billion.

Baron Small Cap Fund stated the following regarding The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) in its Q1 2025 investor letter:

“Shares of insurance broker The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) rebounded from weakness in the prior quarter due to favorable operating trends and the relative stability of insurance stocks in a risk-off market. In the most recent quarter, the company reported strong results with 16% revenue growth, 38% EBITDA growth, and net leverage moderating to 4.1x. For 2025, management expects continued double-digit organic growth and margin expansion, despite higher costs related to the California wildfires and the replacement of an insurance carrier for its homeowner’s insurance business. Management reaffirmed the goal of achieving $3 billion of revenue and 30% EBITDA margins within five years, implying a near-tripling of earnings. Even coming close to those aspirations would lead to great stock performance from current levels.”

The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) at the end of the first quarter, which was 14 in the previous quarter. While we acknowledge the potential of The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) and shared Baron Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.