Varied Growth Signals Lifted Interactive Brokers Group (IBKR) in Q2

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund maintained its strong relative performance from the first quarter into the second quarter, with overall performance improving as it completely recovered from the losses experienced earlier, which were related to economic concerns stemming from newly implemented tariffs by the administration. Most of the firm’s company management teams expect the tariffs to have a minimal impact, as costs will likely be shared with suppliers and passed through in small price increases that won’t significantly affect demand. As a result of this clarity, the fund appreciated by 12.78% (Institutional Shares) compared to an 11.31% gain for the Russell 2500 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Focused Growth Fund highlighted stocks such as Interactive Brokers Group, Inc. (NASDAQ:IBKR). Founded in 1977, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. The one-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was 13.07%, and its shares gained 133.04% of their value over the last 52 weeks. On July 31, 2025, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $65.56 per share, with a market capitalization of $111.186 billion.

Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its second quarter 2025 investor letter:

“Leading online brokerage house Interactive Brokers Group, Inc. (NASDAQ:IBKR) contributed to performance, driven by strong quarterly results and a rebound in equity markets. The quarter began with considerable turbulence following Liberation Day in early April, when President Trump announced sweeping tariffs on most U.S. trading partners. This initially triggered recession fears and led to a selloff in capital markets stocks, including retail brokers and alternative asset managers. However, as the quarter progressed, many of these tariffs were either paused or rolled back as the Trump administration pursued trade deals. Markets rebounded sharply in May and June, with the S&P 500 and NASDAQ Composite both ending the quarter at record highs. This recovery supported robust business momentum at Interactive Brokers, with continued growth in client accounts and assets under management, elevated trading volumes, and a rebound in margin balances. We continue to own the stock due to its long-term earnings potential and its consistent 30%-plus account growth rate.”

Interactive Brokers (IBKR) Gets 8% Upside from Higher Price Target, Impressive Earnings

A skilled senior trader executing an order in a fast paced trading environment.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the first quarter, which was 69 in the previous quarter. While we acknowledge the risk and potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared the list of best multibagger stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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