Baron Discovery Fund Increased Its Holdings in indie Semiconductor (INDI) in 2025

1 month ago 27

Soumya Eswaran

Wed, February 4, 2026 astatine 6:22 AM CST 3 min read

Baron Funds, an concern absorption company, released its “Baron Discovery Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Fund focuses connected long-term, competitively positioned companies that are well-managed and person important imaginable successful untapped markets. The missive besides addressed the advancements successful AI and however humans specify themselves successful the changing landscape. In Q4, the money generated a instrumentality of 0.19% (Institutional Shares), underperforming the Russell 2000 Growth Index by 1.03 percent points. Over the full year, the money posted a instrumentality of 10.96%, portion the Index returned 13.01%. The outperformance of low-quality and short-term terms momentum-oriented stocks affected the Fund’s absorption connected semipermanent valuation metrics. The apical 10 holdings comprised 26.7% of the Fund’s nett assets, with currency making up 3.3%. The Fund maintains beardown optimism and expects a high-growth, low-inflation situation successful 2026. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Baron Discovery Fund highlighted Indie Semiconductor, Inc. (NASDAQ:INDI). Indie Semiconductor, Inc. (NASDAQ:INDI) designs and develops assorted semiconductor and infrastructure bundle solutions. The one-month instrumentality of Indie Semiconductor, Inc. (NASDAQ:INDI) was -4.44%, and its shares mislaid 10.42% of their worth implicit the past 52 weeks. On February 3, 2026, Indie Semiconductor, Inc. (NASDAQ:INDI) banal closed astatine $3.66 per share, with a marketplace capitalization of $742.57 million.

Baron Discovery Fund stated the pursuing regarding Indie Semiconductor, Inc. (NASDAQ:INDI) successful its 4th fourth 2025 capitalist letter:

"We bought much Indie Semiconductor, Inc. (NASDAQ:INDI) successful the 2nd 4th astatine an mean terms of $1.82, down astir 55% successful the 4th owed to concerns astir the company’s quality to grow. It ended the twelvemonth astatine $3.53."

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Indie Semiconductor, Inc. (NASDAQ:INDI) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge money portfolios held Indie Semiconductor, Inc. (NASDAQ:INDI) astatine the extremity of the 3rd quarter, up from 13 successful the erstwhile quarter. While we admit the imaginable of Indie Semiconductor, Inc. (NASDAQ:INDI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.