Baron Funds, an funding administration firm, launched its “Baron Targeted Progress Fund” third-quarter 2025 investor letter. A duplicate of the letter could be downloaded here. The Fund delivered robust leads to the third quarter, appreciating 4.83% (Institutional Shares); nonetheless, the efficiency underperformed the Russell 2500 Progress Index’s (the Benchmark) 10.73% achieve. The fund’s underperformance stemmed from considerations over a slowdown in financial development affecting the fund’s extra economically delicate Shopper Discretionary shares. Moreover, the rise in aggressive pressures has adversely affected the valuations of some of its holdings. As well as, please test the fund’s prime 5 holdings to know its greatest picks in 2025.
In its third-quarter 2025 investor letter, Baron Targeted Progress Fund highlighted shares reminiscent of Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) affords knowledge analytics and expertise options to the insurance coverage business. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -9.64%, and its shares misplaced 21.18% of their worth over the past 52 weeks. On November 4, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) inventory closed at $220.00 per share, with a market capitalization of $30.662 billion.
Baron Targeted Progress Fund acknowledged the next relating to Verisk Analytics, Inc. (NASDAQ:VRSK) in its third quarter 2025 investor letter:
“Shares of Verisk Analytics, Inc. (NASDAQ:VRSK), a number one knowledge and analytics vendor, declined 19.1% within the quarter and damage efficiency by 51 bps. The decline was as a result of considerations of a deceleration in income development within the second half of the yr as a result of softer insurance coverage market in addition to a big acquisition the corporate made within the quarter to broaden its product pipeline and speed up development within the coming years. Nonetheless, whereas the income development considerations are legitimate, it’s only a distinction in development of fifty bps relying on whether or not they’re promoting into a powerful or softer insurance coverage market. The corporate continues to generate robust excessive single-digit income development and stays upbeat on their pipeline of recent merchandise transferring ahead. We imagine that Verisk is nicely positioned round AI given they’re a obligatory asset for insurance coverage firms within the property and casualty insurance coverage ecosystem and the deeply proprietary nature of lots of their knowledge belongings. We nonetheless imagine the corporate is nicely positioned for long-term development, margin growth, and powerful returns on investments over the approaching years.”
Verisk Analytics, Inc. (NASDAQ:VRSK) shouldn’t be on our listing of 30 Most Popular Stocks Among Hedge Funds. In response to our database, 49 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) on the finish of the second quarter, in comparison with 45 within the earlier quarter. Within the third quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $768 million in revenue, representing a rise of 5.9% from Q3 2024. Whereas we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) as an funding, we imagine sure AI shares supply larger upside potential and carry much less draw back danger. In case you’re searching for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.
