The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
As of Nov 12, 2026
Baron Durable Advantage Fund generated an in-line quarter during the third quarter of 2026, with Institutional Shares gaining 2.23% net of fees compared to a 2.30% gain for the benchmark S&P 500 Index. Year-to-date, the Fund is up 5.70% net of fees versus 12.75% for the benchmark. Stock selection contributed positively by 62 basis points, supported by gains in Communication Services, Consumer Discretionary, and Financials, but was counterbalanced by a 70 basis point drag from sector allocation, notably an underweight in Energy and drag in Information Technology. The Fund closed the quarter with 29 holdings, high portfolio concentration with the top 10 positions representing 64.5% of net assets and top 20 representing 87.6%, and minimal cash and Consumer Staples exposure totaling 2.1%. Macroeconomic crosscurrents dominated the period as the Federal Reserve raised interest rates for the first time in three years, pushing the 10-year Treasury yield to 5.3%. Ongoing geopolitical friction in the Middle East and Eastern Europe elevated energy prices, while public discourse debated an artificial intelligence buildout bubble. Despite high-profile concerns regarding large-model revenue deceleration and cloud compute availability, underlying cloud run-rates expanded 50% year-over-year. The manager frames the current regime not around short-term macroeconomic noise, but as the initial steep phase of an unprecedented, capital-intensive technological S-curve. Portfolio activity centered on capitalizing on mid-quarter volatility in infrastructure and semiconductor assets. The Fund augmented positions in specialized contractor Quanta Services and fabrication equipment supplier Lam Research following sharp industry sell-offs. Core mega-cap compounders drove absolute performance, led by triple-digit basis point contributions from Microsoft, Meta Platforms, and NVIDIA. Trims were executed across existing winners to fund deployment, including modest reductions in Alphabet, Amazon, LPL Financial, Apollo Global Management, Blackstone, and Taiwan Semiconductor Manufacturing Company, alongside the full disposition of a spun-out stub in Mobility Global.
Invest exclusively in highest-quality, large-cap durable compounders with formidable competitive moats, exceptional capital allocation track records, high returns on invested capital, and robust free cash flow generation.
The ongoing transformation driven by artificial intelligence will yield immense tangible economic value over multi-year cycles despite inevitable short-term volatility. Maintaining concentrated exposure to structurally advantaged businesses with proven capital allocation will drive prospective risk-adjusted returns regardless of macroeconomic fluctuations.
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