Baron Fund, an investment management company, released its Q4 2025 letter for “Baron Small Cap Fund”. A copy of the letter can be downloaded here. The market extended its positive trends in the fourth quarter. The Baron Small Cap Fund was down 1.56% in the quarter compared to 1.22% gain for the Russell 2000 Growth Index. The fund returned (0.66)% in 2025, trailing the index by 13.67 percentage points. The yearly performance was weak both on an absolute and a relative basis. Large-cap growth stocks led the market for the third consecutive year, with concentrated leadership. Heading into 2026, the firm expects better growth ahead for small caps given the solid setup. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as Andersen Group Inc. (NYSE:ANDG). The fund added Andersen Group Inc. (NYSE:ANDG), a leading tax, valuation, and financial advisory services provider, during the quarter. On February 6, 2026, Andersen Group Inc. (NYSE:ANDG) stock closed at $21.42 per share. One-month return of Andersen Group Inc. (NYSE:ANDG) was -10.53%, and YTD its shares lost 17.39% of their value. Andersen Group Inc. (NYSE:ANDG) has a market capitalization of about $2.377 billion.
Baron Small Cap Fund stated the following regarding Andersen Group Inc. (NYSE:ANDG) in its fourth quarter 2025 investor letter:
“The Fund’s lone new purchase this quarter was Andersen Group Inc. (NYSE:ANDG), a leading provider of tax, valuation and financial advisory services to individuals, family offices, businesses, and institutional clients. The company provides many services, but their core area of expertise is helping high net worth individuals and corporations optimize their tax planning. Andersen has a strong competitive position driven by their globally recognized brand, which enables the company to attract and retain top talent. Their global affiliate network (Andersen Global) allows the company to offer clients worldwide coverage at scale that few other peers can offer. Relative to the Big Four audit firms, Andersen has a notably lower ratio of employees per partner (indicating a higher touch business model) and by not offering audit services, avoiding auditor independence rules and restrictions.
