The Baron Partners Fund reported a substantial gain in the fourth quarter of 2025, with its Institutional Shares climbing by 19.07%. This impressive performance surpassed its benchmark, the Russell Midcap Growth Index, highlighting the fund's strategic investment decisions. Several companies significantly contributed to this positive outcome, demonstrating the fund's diversified yet focused approach.
Among the top performers, SpaceX emerged as a major driver of value, primarily due to the rapid expansion of its Starlink broadband service and the ongoing advancements in its Starship program. The increasing demand for satellite internet and the ambitious goals of Starship's development underscore the company's potential. Additionally, global hotel giant Hyatt Hotels Corporation saw its stock rise, boosted by strong revenue per available room and continued unit growth, even in the face of broader macroeconomic uncertainties. These successes were balanced against some underperformers; CoStar Group's shares declined as its substantial investment in the residential product yielded modest sales, and Spotify experienced a drop in value, consistent with a general downturn among highly valued technology stocks.
The Baron Partners Fund's strong performance in Q4 2025 serves as a testament to diligent research and a forward-thinking investment philosophy. By identifying and supporting companies poised for significant growth, particularly in innovative sectors like space technology and resilient industries such as hospitality, the fund not only achieves financial success but also champions progress and economic vitality. Such strategic investing fuels innovation, creates jobs, and contributes to a dynamic and prosperous economy.