© Reuters.

Amid a challenging market environment, Baron Funds’ Baron Asset Fund reported a modest decline in the third quarter of 2023, with a 4.42% dip, yet it managed to outperform the Russell Midcap Growth Index, which fell by 5.22%. The fund’s relative success was attributed to strategic stock selection and style biases, as well as a cautious approach towards high beta stocks, which tend to be more volatile.

The fund’s featured stocks experienced mixed fortunes. Vail Resorts (NYSE:), Inc., known for its ski resorts and outdoor recreation services, saw its shares close at $221.15 on Thursday. Despite a positive one-month return of 2.82%, the company’s shares have depreciated by 8.03% over the past year. With a market capitalization standing at $8.424 billion, Vail Resorts faced headwinds such as unfavorable weather in Australia and reduced visitation at U.S. resorts due to international borders reopening. Nevertheless, the company witnessed an 11% year-over-year increase in seasonal ski pass demand.

In contrast, another prominent holding in the Baron Asset Fund portfolio, Verisk Analytics (NASDAQ:), Inc., closed at $237.93 per share on Thursday. The company, a leading data provider to insurance markets, had a one-month return of -3.91%. However, thanks to strong earnings performance and an upward revision of its fiscal year 2023 guidance, Verisk enjoyed a significant annual appreciation of 33.47% in its share value, boosting its market cap to $34.497 billion.

Baron Funds’ ability to navigate the recent market reversal highlights the resilience and adaptability of their investment strategy during periods of economic uncertainty.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.