SiTime Corporation (SITM) Rallied More Than 90% in 2025

Core Insights - Baron Discovery Fund focuses on long-term, competitively positioned companies with significant potential in untapped markets [1] - The Fund generated a return of 0.19% in Q4 2025, underperforming the Russell 2000 Growth Index by 1.03 percentage points [1] - Over the entire year, the Fund posted a return of 10.96%, while the Index returned 13.01% [1] - The top 10 holdings comprised 26.7% of the Fund's net assets, with cash making up 3.3% [1] - The Fund maintains optimism for a high-growth, low-inflation environment in 2026 [1] Company Focus: SiTime Corporation - SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems [2] - The one-month return of SiTime Corporation was 2.55%, and its shares gained 57.62% over the last 52 weeks [2] - As of February 3, 2026, SiTime Corporation's stock closed at $351.47 per share, with a market capitalization of $9.174 billion [2] - The Fund purchased SiTime Corporation at average prices of $178.63 in Q1 when it was down 17% due to concerns about the semiconductor sector [3] - SiTime Corporation is not among the 30 Most Popular Stocks Among Hedge Funds, with 35 hedge fund portfolios holding it at the end of Q3, down from 37 in the previous quarter [3] - While acknowledging SiTime's potential, the Fund believes certain AI stocks offer greater upside potential and less downside risk [3]