Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Global Opportunity Fund”. A copy of the letter can be downloaded here. Baron Global Opportunity Fund showcased a strong fourth quarter and an outstanding year. The Fund rose 6.5% (Institutional Shares) in Q4 compared to 3.3% return for the MSCI ACWI Index (the Index) and the 2.8% gain for the MSCI ACWI Growth Index, the Fund’s benchmarks. For 2025, the Fund was up 27.5%, exceeding 22.3% and 22.4% returns for benchmarks, respectively. For the Fund, the year has been defined by the challenges of de-globalization and the support from easing Federal Reserve policies, the beginnings of the AI investment cycle, and its investment in SpaceX. The Fund concluded the year with 42 investments, up from 38 the previous year, with 35 stocks accounting for 99.3% of its net assets. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Baron Global Opportunity Fund highlighted stocks like Wix.com Ltd. (NASDAQ:WIX). Wix.com Ltd. (NASDAQ:WIX) is an Israel-based cloud-based web development platform for registered users and creators. On March 05, 2026, Wix.com Ltd. (NASDAQ:WIX) stock closed at $92.94 per share. One-month return of Wix.com Ltd. (NASDAQ:WIX) was 23.23%, and its shares lost 50.18% over the past 52 weeks. Wix.com Ltd. (NASDAQ:WIX) has a market capitalization of $5.175 billion.
Baron Global Opportunity Fund stated the following regarding Wix.com Ltd. (NASDAQ:WIX) in its fourth quarter 2025 investor letter:
“Wix.com Ltd. (NASDAQ:WIX) is a leading provider of cloud-based web development platform for micro-businesses. Shares of Wix declined 41.5% during the fourth quarter and ended the year down 51.9% due to a quarterly earnings report that emphasized greater-than-expected investment behind their new acquisition, the vibe-coding startup, Base44, which stirred investor concerns over the company’s margin trajectory in the short term, after three consecutive years of significant margin expansion. While investors initially responded positively to the acquisition, the short-term impact on margins, the uncertainty around Base44 cohort life time-values, and the uncertain potential impact of vibe-coding and AI on Wix’s core web-development platform, caused investor concerns leading to the decline in the stock price. While there is a range of outcomes of how successful it could become in a crowded space, Base44 opens a new opportunity for Wix, and if it succeeds, it could become fairly material, expanding Wix’s TAM. Apart from Base44, the stock remains attractively valued for the opportunity despite the wider than normal range of outcomes on the evolution of Wix’s core business with FCF margins around 30%, and a mid teens growth profile, trading at an 11% current FCF yield.”
Wix.com Ltd. (NASDAQ:WIX) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Wix.com Ltd. (NASDAQ:WIX) at the end of the fourth quarter, up from 71 in the previous quarter. In Q4 2025, Wix.com Ltd. (NASDAQ:WIX) reported revenue of $524 million, marking an increase of 14% year over year. While we acknowledge the risk and potential of Wix.com Ltd. (NASDAQ:WIX) 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 Wix.com Ltd. (NASDAQ:WIX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wix.com Ltd. (NASDAQ:WIX) and shared a list of beaten-down technology stocks that could bounce back in 2026. In addition, please check out our hedge fund investor letters Q4 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.
