Verisk Analytics (VRSK) Rose on Solid Results

Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. After a strong start to 2025, U.S. equities dropped sharply in late February, with most broad market indexes finishing the quarter down mid- to high single digits. Initially, investors were optimistic about the economy during President Trump’s second term. However, market sentiment shifted due to Trump’s plans for sweeping tariffs on key U.S. trade partners. Additionally, investors tempered their enthusiasm for AI beneficiaries, leading to a sell-off in the Magnificent Seven and other companies within the AI ecosystem. Against this backdrop, Baron Asset Fund had a robust first quarter, returning -2.89% (Institutional Shares) compared to the Russell Midcap Growth Index’s -7.12% return. 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 Asset Fund highlighted stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was 1.40%, and its shares gained 18.74% of their value over the last 52 weeks. On June 12, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $313.91 per share, with a market capitalization of $43.911 billion.

Baron Asset Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q1 2025 investor letter:

“Shares of Verisk Analytics, Inc. (NASDAQ:VRSK), a leading data and analytics vendor, contributed to performance. The company reported solid quarterly results, including particularly strong organic revenue growth. CEO Lee Shavel also sounded upbeat about Verisk’s growth potential in 2025. Verisk also benefited from the investor rotation into more defensive stocks driven by tariff-related uncertainty. We maintain conviction in the company’s competitive positioning, long-term growth, margin expansion, and its ability to deploy capital accretively.”

An engineer using the latest predictive analytics software to formulate solutions.

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the first quarter, which was 40 in the previous quarter. In the first quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $753 million in revenues, representing an increase of 7% from Q1 2024. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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 Verisk Analytics, Inc. (NASDAQ:VRSK) and shared TimesSquare Capital U.S. Focus Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of VRSK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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