Core Insights - Baron Small Cap Fund experienced a decline of 1.56% in Q4 2025, underperforming the Russell 2000 Growth Index, which gained 1.22% during the same period. The fund's total return for 2025 was -0.66%, trailing the index by 13.67 percentage points, indicating weak performance both absolutely and relatively [1]. Group 1: Fund Performance - The market showed positive trends in Q4 2025, but the Baron Small Cap Fund did not capitalize on this, resulting in a negative quarterly return [1]. - Large-cap growth stocks continued to lead the market for the third consecutive year, highlighting a concentrated leadership in the market [1]. - The firm anticipates better growth prospects for small-cap stocks heading into 2026 due to a solid market setup [1]. Group 2: Vertiv Holdings Co (NYSE:VRT) - Vertiv Holdings Co (NYSE:VRT) was highlighted as a leading contributor to the Baron Small Cap Fund, with a market capitalization of $74.778 billion [2]. - The stock closed at $195.58 per share on February 6, 2026, with a one-month return of 15.03% and a 12-month increase of 55.52% [2]. - Vertiv's shares rose significantly during the quarter, driven by robust financial results, including a 29% organic revenue growth, and the announcement of a $1 billion accretive acquisition [3]. - The company is positioned for growth due to its broad product portfolio and unique service capabilities, serving as a preferred solutions provider to major chip and hyperscale companies [3]. Group 3: Hedge Fund Interest - Vertiv Holdings Co (NYSE:VRT) was held by 102 hedge fund portfolios at the end of Q3 2025, a slight decrease from 104 in the previous quarter [4]. - While Vertiv is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4].