Primo Brands Corporation (PRMB) Slid as its Home and Office Water Delivery Business’s Performance Disappointed

Core Insights - Baron Discovery Fund focuses on long-term, competitively positioned companies with significant potential in untapped markets [1] - In Q4 2025, the Fund generated a return of 0.19%, underperforming the Russell 2000 Growth Index by 1.03 percentage points [1] - The Fund's annual return for 2025 was 10.96%, compared to the Index's return of 13.01% [1] - The top 10 holdings made up 26.7% of the Fund's net assets, with cash comprising 3.3% [1] - The Fund maintains optimism for a high-growth, low-inflation environment in 2026 [1] Company-Specific Insights - Primo Brands Corporation (NYSE:PRMB) was a leading detractor from the Fund's performance in Q4 2025, with a stock price of $18.96 on February 3, 2026 [2] - Over the past twelve months, Primo Brands Corporation's shares lost 43.44% of their value, despite a recent monthly return of 10.75% [2] - The company has a market capitalization of $7.021 billion [2] - Issues in the home and office water delivery business were highlighted, stemming from a merger and subsequent cost-saving measures that led to service disruptions [3] - The disruptions were attributed to changes in 5-gallon jug availability and new technology systems affecting delivery logistics [3] - The magnitude of service disruption was greater than expected, but there is an expectation for the business to return to normal growth rates in the coming quarters [3]