Vail Resorts (MTN) Fell due to Investor Concerns

Baron Funds, an investment management company, released its “Baron Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 4.25% (Institutional Shares) in the first quarter, exceeding the Russell 2000 Growth Index’s (the Benchmark) 11.12% fall.  The Trump administration’s rapid agenda implementation led the stock to decline 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 Growth Fund highlighted stocks such as Vail Resorts, Inc. (NYSE:MTN). Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return of Vail Resorts, Inc. (NYSE:MTN) was 4.25%, and its shares lost 14.09% of their value over the last 52 weeks.  On June 9, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $155.68 per share, with a market capitalization of $5.784 billion.

Baron Growth Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q1 2025 investor letter:

“Global ski resort company Vail Resorts, Inc. (NYSE:MTN) detracted on investor concerns that a potential recession would result in a slowdown in visitation and spend. While we are closely monitoring economic conditions, Vail has not yet experienced significant declines in visitation or spend levels at its resorts. Favorable late-season ski conditions produced an uptick in destination skiers, who tend to stay longer and spend more. A base of recurring revenue from season pass sales provides visibility into earnings and cash flow. We expect to see EBITDA growth in 2025 with enough free cash flow to fund Vail’s well-covered 6% dividend. A strong balance sheet and high-end customer base should provide resiliency in the event of a slowdown.”

Jim Cramer on Vail Resorts (MTN) – “I’m Getting Real Interested in This One”

An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.

Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) 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 Vail Resorts, Inc. (NYSE:MTN) and shared the list of top dividend trap stocks you should avoid in 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.