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]

Core Viewpoint - SiTime Corporation has seen a significant increase in analyst price targets over the past year, driven by strong financial performance and strategic market positioning [1][4]. Financial Performance - The average price target for SiTime increased to $355 last month, reflecting analyst optimism based on the company's strong financial results [2]. - SiTime reported a 58% increase in second-quarter revenue, reaching $69.5 million, up from $43.9 million the previous year [2]. - The company achieved earnings per share of $0.47, exceeding the Zacks Consensus Estimate of $0.29, contributing to improved analyst expectations [3]. Analyst Sentiment - The consensus price target for SiTime rose from $284 to $355 over the past year, indicating a strong upward trend in analyst expectations [4][6]. - Analysts project earnings of $0.71 per share and revenue of approximately $78 million for the upcoming third-quarter earnings report [5][6]. Market Positioning - SiTime specializes in innovative timing devices for various industries, positioning itself competitively against larger companies like Microchip Technology and Texas Instruments [1]. - The company's focus on high-performance applications and growth strategies has driven momentum across its end markets, as noted by CEO Rajesh Vashist [4].