Baron Capital, an investment management company, released its first quarter 2026 investor letter for its “Baron Financials EFT”. A copy of the letter can be downloaded here. The Fund fell 15.97% (NAV) compared with a 9.89% decline for the MSCI USA Financials Index (the Financials Index) and a 20.15% decline for the FactSet Global FinTech Index (the FinTech Index). U.S. equities fell in Q1 due to AI-driven disruption and geopolitical shocks, prompting a rotation from software and growth stocks to defensive, commodity, and value segments. Small caps outperformed large caps, with value significantly surpassing growth across all categories. The fund lagged the Financials Index mainly due to overexposure to sectors impacted by AI concerns and underexposure to value stocks. However, it outperformed the FinTech Index due to strong stock selection and unique exposure to the capital markets. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Baron Financials EFT highlighted stocks like Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) is a financial software company offering products and services for financial management, payments, capital, compliance, and marketing. On June 4, 2026, Intuit Inc. (NASDAQ:INTU) closed at $301.98 per share. One-month return of Intuit Inc. (NASDAQ:INTU) was -23.80%, and its shares lost 60.86% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $82.60 billion.
Baron Financials EFT stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q1 2026 investor letter:
“Intuit Inc. (NASDAQ:INTU) is the leading provider of accounting software for small businesses and tax preparation software for individuals and tax professionals. Shares fell due to concerns about AI-related competitive threats and a broad-based pullback in software company valuations. Nevertheless, Intuit’s quarterly financial results exceeded Street expectations, driven by QuickBooks’ expansion within the larger and more complex mid-market segment, share gains in assisted tax preparation, and cyclical strength from Credit Karma. Management believes the business is well insulated from AI disruption given that accuracy, compliance, security, and reliability are critical for customers. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities.”
Intuit Inc. (NASDAQ:INTU) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 92 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the first quarter, compared to 91 in the previous quarter. In the third quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $8.6 billion, reflecting a 10% year-over-year growth. While we acknowledge the risk and potential of Intuit Inc. (NASDAQ:INTU) 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 Intuit Inc. (NASDAQ:INTU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared the list of cheap stocks with strong buy ratings on Wall Street. Brown Advisory Global Leaders Strategy sold its position in Intuit Inc. (NASDAQ:INTU) in Q1 2026. In addition, please check out our hedge fund investor letters Q1 2026 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.
