Baron Durable Advantage Fund returned 2.6% (institutional shares) in the fourth quarter of 2025, in line with the 2.7% gain for its benchmark, the S&P 500 Index.
The fund, in its Q4 shareholder letter, stated that Alphabet (GOOGL), Taiwan Semiconductor Manufacturing Company (TSMC) (TSM), and Broadcom (AVGO) were the top contributors, while Meta Platforms (META), Blackstone (BX), and Microsoft (MSFT) were top detractors for the quarter.
During Q4, the fund initiated new positions in Quanta Services (PWR) and strengthened its holdings in Danaher (DHR), CME Group (CME), Welltower (WELL), TransDigm (TDG), and MSCI (MSCI). The purchases were funded by reducing seven other holdings.
The fund reduced its holdings in Broadcom (AVGO), Mastercard (MA), S&P Global (SPGI), Intuit (INTU), and Arch Capital Group (ACGL) during the quarter.
Source: Q4 shareholder letter