Baron Fund, an investment management company, released its Q4 2025 letter for “Baron Partners Fund”. A copy of the letter can be downloaded here. The Fund increased considerably in the fourth quarter, returning 19.07% (Institutional Shares). It outperformed both the Russell Midcap Growth Index (the Benchmark), which returned -3.70%, and the broader Russell 3000 Index, which returned 2.40% in the quarter. The Fund returned 24.86% in the calendar year, significantly outperforming the Russell Midcap Growth Index, which posted a return of 8.66%, and the Russell 3000 Index, which returned 17.15%. The Fund focuses on long-term investments in a non-diversified portfolio of well-managed growth businesses at attractive prices across market caps. It has consistently delivered strong absolute and relative performance over the long term. The Fund has seen substantial appreciation during good times and has preserved value during challenging periods. 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 Partners Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW). The Charles Schwab Corporation (NYSE:SCHW) is a leading brokerage and financial services company. The Charles Schwab Corporation (NYSE:SCHW) stock closed at $99.25 per share on February 10, 2026, with a market capitalization of $180.161 billion. One-month return of The Charles Schwab Corporation (NYSE:SCHW) delivered a -2.62% return in the past month, and its shares are up 20.62% over the past twelve months.
Baron Partners Fund stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its fourth quarter 2025 investor letter:
“Brokerage firm The Charles Schwab Corporation (NYSE:SCHW) has embarked on a multi-year program to improve funding costs. Net new asset trends have strengthened as the company completes the multi stage migration of TD Ameritrade accounts to the Schwab platform. Reflecting these positive developments, full-year guidance was raised for revenue, net interest margin, and earnings per share. After several years of downward earnings revisions, investors are rewarding Schwab’s improving fundamentals and upward estimates as the company returns to its normal double-digit earnings growth trajectory. We believe Schwab has a dominant position in retail brokerage and an ability to drive earnings growth through both organic expansion in assets under management and improved funding efficiency. The stock increased 36.6% in 2025.”
