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 |
|---|---|---|---|---|---|---|
Baron Fifth Avenue Growth Fund gained 24.6% in Q2 2026, outperforming the Russell 1000 Growth Index by 790 basis points. The quarter mirrored 2025's pattern: a first quarter drawdown driven by geopolitical uncertainty followed by strong second quarter recovery as fears subsided. Stock selection drove all outperformance, contributing 940 basis points, with strength in Communication Services, Information Technology, and Health Care. SpaceX was the top contributor at 404 basis points, benefiting from its $85 billion IPO and landmark AI hosting agreements with Anthropic and Google totaling $26 billion annually. The manager views SpaceX as N=1, positioned at the intersection of AI and space economy with insurmountable competitive advantages. AI-driven companies including CrowdStrike, Datadog, and Snowflake demonstrated accelerating growth as AI creates structural demand. NVIDIA and TSMC continued exceptional performance despite valuation concerns. The portfolio's weighted average multiple expanded 12.2% in the quarter but remains 10.5% below its five-year average, with more than 100% of year-to-date returns driven by fundamental growth rather than multiple expansion. The manager remains focused on long-term value creation through disruptive change investments.
The Fund invests in high quality, competitively advantaged, well-managed businesses positioned to benefit from disruptive change, with particular focus on companies at the intersection of transformative secular growth trends including AI, space economy, cloud migration, and digital transformation.
The manager remains purposefully indifferent to short-term market prognostications and focused on identifying high quality, competitively advantaged, well-managed businesses for the long term. More than 100% of the Fund's year-to-date return has been driven by growth in fundamentals rather than multiple expansion, which bodes well for prospective returns. The portfolio's weighted average multiple is 10.5% below its five-year average. The manager is optimistic about the long-term prospects of portfolio companies and continues to search for new ideas while remaining patient and investing only when companies trade at attractive prices relative to intrinsic values.
As of Aug 14, 2026
Alex Umansky serves as portfolio manager of Baron Fifth Avenue Growth Fund, bringing over 32 years of research experience to the role since joining Baron Capital in 2011. Prior to Baron, Umansky worked at Morgan Stanley where he co-managed several growth-oriented funds including the Morgan Stanley Opportunity Fund from 2007-2011, Global Opportunity Fund for two years, Morgan Stanley Information Fund from 2005-2006, and served as lead manager of the Morgan Stanley Technology Fund from 2000-2003. His extensive background spans technology and growth investing, with particular expertise in identifying secular growth companies with sustainable competitive advantages. Umansky holds a Bachelor of Science in Finance, Information Systems, and Mathematics from New York University Stern School of Business, earned in 1993. His investment approach emphasizes fundamental research, long-term value creation, and conviction-based portfolio construction focusing on companies positioned to benefit from transformative technology trends. Under his management since November 2011, the fund has maintained a concentrated approach with typically 20-30 high-conviction positions in large-cap growth companies.
The Baron Fifth Avenue Growth Fund seeks capital appreciation through investments primarily in securities of large-sized growth companies with market values greater than $5 billion. The fund employs a concentrated, long-term growth investment approach focusing on businesses the adviser believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and attractive valuation. Baron Capital emphasizes a long-term, fundamental, active approach to growth investing including proprietary five-year valuation models. The portfolio typically holds about 20 to 30 appropriately capitalized, competitively advantaged, well-run growth businesses at attractive prices. The investment process focuses on secular growth trends including cloud computing, artificial intelligence, e-commerce, semiconductors, and digital transformation technologies. Baron Capital seeks businesses that can double in value over the next 5-7 years with a threshold annualized return expectation of 15% over time.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The Fund demonstrates high conviction through concentrated positioning with top 10 holdings representing 67.5% of net assets and just 27 total positions. The manager provides detailed, specific thesis work on major holdings including SpaceX (described as N=1 with no rivals), NVIDIA, TSMC, CrowdStrike, Datadog, and Eli Lilly, with explicit position sizing and clear catalysts. Language is declarative with statements like 'we retain long-term conviction' and 'core long-term holdings.' However, the portfolio is not extreme concentration (5-10 positions) and includes some hedging language around uncertainty. The explanation cites specific holdings, market caps, and percentage allocations, supporting a high conviction score of 0.78.
Growth Outlook
Market outlook remains above average conviction: Baron Fifth Avenue Growth Fund finished up 18.2% in 2025, supported by exceptional fundamental growth across its portfolio companies. The fund is actively deploying capital into le...
Risk Appetite
Risk appetite posture is above average conviction: Baron Fifth Avenue Growth Fund finished up 18.2% in 2025, supported by exceptional fundamental growth across its portfolio companies. The fund is actively deploying capital into le...
Capital Deployment
The manager initiated one new position (Cerebras) and added to two existing positions (Amphenol and Eli Lilly) while slightly reducing 12 positions. No cash level data is provided, but the activity suggests rotation and selective deployment rather than aggressive net deployment or de-risking. The manager describes taking advantage of volatility to add positions but also trimming to fund purchases, indicating balanced activity. Without cash percentage changes, the score reflects moderate selective deployment based on position activity. Score: +0.25.
Forward Guidance
Forward guidance signal: Baron Fifth Avenue Growth Fund finished up 18.2% in 2025, supported by exceptional fundamental growth across its portfolio companies. The fund is actively deploying capital into le...
Language Signal
The letter contains predominantly bullish directional language with extensive use of opportunity, attractive, growth, upside, and positive framing around AI, SpaceX, semiconductors, and GLP-1 drugs. Terms like unprecedented demand, stellar results, exceptional performance, transformative, and compelling big idea dominate the narrative. Risk language is present but largely framed as short-term or manageable, with headwinds described as temporary. The balance tilts meaningfully toward bullish language while maintaining some acknowledgment of uncertainty. Score: +0.70.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Baron Fifth Avenue Growth Fund finished up 18.2% in 2025, supported by exceptional fundamental growth across its portfolio companies. The fund is actively deploying capital into le...
Opportunity Density
The manager describes a rich opportunity set across multiple themes including AI, space economy, semiconductors, cloud, cybersecurity, GLP-1 drugs, and e-commerce. The letter highlights SpaceX as N=1 with multi-trillion dollar opportunities, AI creating structural demand across multiple sectors, and companies like Eli Lilly with $180 billion-plus category potential. The manager initiated a new position, added to existing positions, and continues to search for new ideas. The tone suggests abundant opportunities in defined areas with multiple compelling ideas across the portfolio. Score: 0.75.
Time Horizon
The manager explicitly emphasizes long-term investing throughout the letter, stating 'as long-term investors, we remain purposefully indifferent to the prognostications that occupy so much of the financial media's attention' and 'our focus remains squarely on identifying and investing in high quality, competitively advantaged, well-managed businesses for the long term.' The Fund structure allows for multi-year holding periods, and the manager describes SpaceX opportunities playing out over years to decades. However, the letter also discusses near-term catalysts like quarterly earnings, AI adoption curves, and 2027-2028 product launches. The time horizon is clearly multi-year (2-5 years) with some longer-term elements, but not permanent capital or decade-plus explicit framing. Score: 0.72.
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