| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.21% | -2.2% | 0.9% |
Baron Financials ETF declined 2.22% in Q4 2025, outperforming the FinTech Index but trailing the Financials Index. The fund maintains its growth approach to investing in financial and financial-related companies that leverage technology and data to serve customers and achieve above-average growth rates. Key contributors included Fair Isaac Corporation, which reported strong results and launched a new mortgage lending program, and S&P Global, which benefited from elevated debt issuance and rising equity markets. Detractors included Robinhood Markets, which saw softening cryptocurrency trading volumes, and MercadoLibre, facing competitive pressure in Brazil. The fund added Morgan Stanley during the quarter, attracted by its diversified wealth management platform. Looking ahead, the manager remains optimistic about 2026, citing tailwinds from fiscal stimulus, banking deregulation, and improving capital markets activity. Key risks include political developments around credit card rate caps and trade tensions. The portfolio maintains overweight positions in Capital Markets, Information Services, and Payments while being underweight Banks and Insurance.
The fund takes a growth approach to investing in financial and financial-related companies that use technology and data to better serve customers and grow at above-average rates within the large, global market for financial services.
We remain optimistic about the outlook for the financial sector and our holdings. The macroeconomic environment is generally healthy and supportive of growth. 2026 starts with the tailwinds of constructive fiscal policy and easier monetary policy.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 18 2026 | 2025 Q4 | APO, COF, CWAN, FI, FICO, GWRE, HLI, HOOD, IBKR, INTU, JKHY, KKR, LPLA, MA, MELI, MS, NU, SCHW, SHOP, SPGI, V | AI, Banking, Capital markets, crypto, financials, Fintech, growth, technology |
SPGI JKHY FICO HOOD MELI GWRE MS NEPT |
Baron Financials ETF focuses on growth-oriented financial companies leveraging technology. Despite Q4 underperformance versus traditional financials, the fund benefits from exposure to capital markets recovery and fintech innovation. Political risks around banking regulation present near-term headwinds, but fiscal stimulus and deregulation should drive sector growth in 2026. |
| Nov 13 2025 | 2025 Q3 | COF, FDS, FICO, GWRE, HLI, HOOD, IBKR, INTU, KKR, LPLA, MA, MELI, MORN, NU, PGR, SHOP, SPGI, TW, V, VRSK | AI, Capital markets, credit, financials, Fintech, payments, technology |
HOOD IBKR SHOP CN FICO COF |
Baron FinTech Fund underperformed in Q3 amid a junk rally favoring low-quality stocks over the fund's high-quality holdings. AI concerns pressured software names like Intuit and FactSet, while Capital Markets exposure through Robinhood and Interactive Brokers provided support. The manager added Capital One for its Discover acquisition upside and remains optimistic about long-term fintech fundamentals despite near-term headwinds. |
| Aug 11 2025 | 2025 Q2 | ACGL, ACN, ALKT, CME, CWAN, FICO, FIS, GLOB, GWRE, HOOD, IBKR, INTA, INTU, KKR, KNSL, LPLA, MA, MCO, MELI, MORN, MSCI, PGR, SCHW, SPGI, TW, V, VRSK | Capital markets, E-Commerce, Financial Services, Fintech, payments, technology, volatility | - | Baron FinTech Fund gained 9.26% in Q2 2025 but trailed benchmarks due to stock selection challenges and lower exposure to high-performing Challengers. Robinhood and MercadoLibre drove gains while Fiserv and Progressive detracted. Despite market volatility from tariffs and geopolitical tensions, the manager maintains conviction in competitively advantaged fintech companies with improving economic outlook and strong IPO pipeline ahead. |
| Mar 31 2025 | 2025 Q1 | ACGL, APO, CME, FI, FICO, GLOB, GWRE, HOOD, KKR, LPLA, MA, MELI, MORN, PGR, PRI, SCHW, SPGI, SQ, TW, V | Capital markets, E-Commerce, Fintech, insurance, payments, software, trading |
MELI PGR TW KKR APO SQ HOOD TTAN |
Baron FinTech Fund outperformed in Q1 2025 through strong stock selection in payments and e-commerce, led by Visa, Mastercard, and MercadoLibre. The Fund's defensive positioning with established Leaders proved beneficial amid market volatility. While trade policy uncertainty creates near-term headwinds, the service-based portfolio remains relatively insulated from direct tariff impacts. |
| Dec 31 2024 | 2024 Q4 | ACGL, APO, FI, FICO, GWRE, HOOD, IBKR, INTU, KKR, LPLA, MA, MELI, NU, PGR, PRI, SPGI, TTAN, TW, V, WISE.L | Capital markets, Digital Banking, Financial Services, Fintech, growth, payments, software, technology | - | Baron FinTech Fund outperformed in Q4 2024 on strength from payments companies Visa and Fiserv, plus capital markets beneficiaries of the Republican election sweep including Interactive Brokers and alternative asset managers. The fund added ServiceTitan's IPO and initiated Robinhood while trimming some positions. Manager remains optimistic on secular fintech digitization trends and pro-business policy tailwinds. |
| Sep 30 2024 | 2024 Q3 | ACGL, APO, BLK, EFX, ENDV, FICO, FIS, GWRE, INTU, KKR, LPLA, MA, MELI, PGR, PRI, RPAY, SCHW, SPGI, TRU, TWFG, V | Capital markets, Financial Services, Fintech, growth, insurance, payments, software, technology |
FICO MELI GWRE TWFG PRI |
Baron FinTech Fund delivered strong Q3 performance matching its benchmark while outperforming broader markets. The fund benefits from concentrated exposure to competitively advantaged fintech companies across payments, software, insurance, and capital markets. With sixteen holdings up over 30% year-to-date, the manager continues investing in high-quality companies at the intersection of financial services and technology. |
| Jun 30 2024 | 2024 Q2 | ACGL, APO, EFX, FI, FICO, GPN, GWRE, HLI, IBKR, INTU, KKR, MA, MCO, MELI, PGR, SPGI, SQ, TW, V, VRSK, WISE.L | AI, Capital markets, Financial Services, Fintech, growth, private credit, technology | - | Baron FinTech Fund outperformed its benchmark despite trailing broader markets in Q2, benefiting from strong Capital Markets and Information Services stock selection while facing headwinds from narrow market leadership and Financials underperformance. The fund maintains conviction in secular fintech themes including private markets growth and AI integration, expecting fundamentals-driven returns as market breadth potentially improves. |
| Mar 31 2024 | 2024 Q1 | ACGL, APO, BLK, ENDV, FDS, FI, FICO, GLOB, INTA, INTU, JKHY, KINS, MA, MELI, NU, PGR, SPGI, TW, V, WEX | digital transformation, Enterprise, Financial Services, Fintech, insurance, payments, software, technology |
PGR NU APO ENDV GLOB |
Baron FinTech Fund outperformed in Q1 2024 with strong contributions from insurance, payments, and alternative asset management holdings, while IT services faced spending headwinds. The fund's diversified fintech approach and balanced interest rate exposure position it well for the ongoing multi-decade digital transformation of financial services despite near-term macro uncertainties. |
| Sep 30 2023 | 2023 Q3 | ACGL, ACN, ADYEY, APO, CME, EFX, FICO, FIS, GPN, HLI, IBKR, INTU, LPLA, MA, MELI, MKTX, MORN, MSCI, NCNO, PGR, SPGI, SQ, TW, V | Capital markets, Fintech, growth, payments, software, technology |
APO INTU CARTRADE.NS MORN ACGL |
Baron FinTech Fund outperformed significantly in Q3 2023, gaining 1.30% versus the benchmark's 6.77% decline. Strong performance from Tech-Enabled Financials and Capital Markets drove results, with Apollo and LPL benefiting from higher rates. The portfolio is defensively positioned with quality businesses. Despite macro headwinds, outlook remains optimistic given attractive valuations and improving fundamentals. |
| Jun 30 2023 | 2023 Q2 | ACN, APO, BLK, CSGP, FI, FICO, INTU, LPLA, MA, MELI, MKTX, MSCI, NU, PGR, SHOP, SPGI, TW, V | AI, Banking, Capital markets, Fintech, payments, private credit, software, technology | - | Baron FinTech Fund delivered solid 5.29% quarterly returns driven by AI enthusiasm and fintech M&A activity. The manager sees opportunities in Latin American digital banking through Nu Holdings and private credit growth via Apollo Global Management. Reduced startup funding and continued financial institution technology spending should benefit established fintech incumbents over the long term. |
| Mar 31 2023 | 2023 Q1 | ACN, APO, BILL, CME, ENDV.L, FICO, GWRE, IBKR, INTU, LPLA, MA, MELI, MKTX, MSCI, PGR, SCHW, SPGI, TW, V, WEX | AI, Banking, Financial Services, Fintech, payments, software, technology | - | Baron FinTech Fund underperformed in Q1 2023 due to banking sector turmoil affecting financial holdings and lack of mega-cap tech exposure. Manager maintains defensive positioning with focus on profitable Leaders over growth Challengers. New positions in Interactive Brokers and Apollo Global Management reflect continued conviction in competitively advantaged fintech companies despite economic headwinds. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AfricaFund delivered exceptional performance with 67.21% returns in 2025, significantly outperforming the 44.7% benchmark. Portfolio companies show strong fundamentals with forward PE of 6.1x, dividend yield of 8.0%, and expected EPS growth of 19.2%. Manager emphasizes that valuations remain attractive despite strong performance, with no multiple expansion occurring over the fund's 5+ year history. |
Frontier Markets Emerging Markets Equities Value Growth |
LiquidityManager provides detailed analysis of liquidity challenges in African frontier markets, noting structural factors including tight ownership by corporates (24% vs 19% in emerging markets) and limited foreign participation. However, expects liquidity to improve in current bull market environment as more investors participate. Fund offers only quarterly redemptions due to these constraints. |
Market Structure Trading Redemptions Foreign Investment | |
DividendsPortfolio projects total dividends of $5.6mn in 2026, representing a forward dividend yield of 8.0%. This high yield is highlighted as evidence of the quality businesses owned and attractive valuations available in African frontier markets. |
Income Yield Cash Flow | |
| 2025 Q3 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across all market capitalizations and geographies. Tech-Enabled Financials represented 29.3% of net assets, with the fund maintaining overweight positions in this category relative to the benchmark. |
Digital Banking Financial Technology Payment Networks Credit Cards Brokerage |
AIGenerative AI presents both opportunities and threats across portfolio holdings. While some companies face perceived AI disintermediation risks, the manager expects AI to create more opportunities than threats as companies use AI to launch new products and operate more efficiently. |
Artificial Intelligence Machine Learning Automation Data Analytics Innovation | |
Capital MarketsCapital Markets represented 16.7% of net assets, with strong performance from online brokerage firms like Robinhood and Interactive Brokers. The segment benefited from strong retail trading activity, account growth, and favorable market conditions driving trading commissions and asset-based fees. |
Trading Brokerage Asset Management Market Data Electronic Trading | |
PaymentsPayments represented 11.6% of net assets, with the fund remaining underweight relative to the benchmark. The Capital One-Discover acquisition creates a closed-loop payment network opportunity, enabling higher interchange fees and potential network monetization. |
Payment Processing Interchange Digital Payments Credit Cards Payment Networks | |
Credit StressRecent bankruptcies of automotive-related companies and concerns about broader credit cycles have emerged. While credit issues have been characterized as idiosyncratic, there is increased focus on credit quality across traditional lending and private capital markets. |
Credit Quality Bankruptcies Private Credit Lending Credit Cycles | |
| 2025 Q2 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across all market capitalizations and geographies. The portfolio is segmented into seven investment themes including Tech-Enabled Financials, Information Services, Enterprise Software, Capital Markets, Payments, E-Commerce, and Digital IT Services. The manager expects fintech companies to outperform over time due to their competitive advantages and growth prospects. |
Digital Banking Payments Financial Technology Software Automation |
Capital MarketsCapital Markets holdings performed well during the quarter, with financial services platform Robinhood and online brokerage Interactive Brokers benefiting from heightened market volatility and strong underlying performance. The fund added to CME Group, viewing it as a unique portfolio diversifier that benefits from higher trading volumes during volatile periods and has significant competitive advantages. |
Trading Exchanges Brokerage Volatility Derivatives | |
E-commerceE-commerce holdings contributed positively to performance, led by MercadoLibre which reported strong quarterly results with revenue up 37% and EPS up 44%. The company continues to gain share in Latin America with gross merchandise volume up 40% and total payment volume up 72% on a constant currency basis. The manager views MercadoLibre as a leading beneficiary of secular growth in e-commerce and digital banking in Latin America. |
Digital Commerce Latin America Marketplace Payment Volume Digital Banking | |
PaymentsPayments was a detractor during the quarter, primarily due to weakness in Fiserv which reported slower payment volume growth from its Clover product. Global payment networks Visa and Mastercard underperformed on concerns about competitive threats from stablecoins, though the manager believes such concerns are overdone and remains confident in the networks' growth prospects and competitive advantages. |
Payment Processing Networks Stablecoins Competition Volume Growth | |
AIThe fund benefited from positive AI news during the quarter, which was one of the market catalysts that helped equity markets rebound. The Magnificent Seven complex, which includes major AI beneficiaries, resumed its leadership role and appreciated more than 20% in the period, though the fund's lack of exposure to this group was a headwind to performance against the broader market. |
Artificial Intelligence Technology Innovation Growth Leadership | |
| 2025 Q1 |
PaymentsStrong performance from global payment networks Visa and Mastercard driven by accelerating payment volumes and defensive business models. Payment companies benefit from fee-based revenue tied to nominal payment volumes, providing protection against inflationary pressures. |
Visa Mastercard Payment Processing Transaction Volumes Fee Revenue |
FinTechFund maintains focus on competitively advantaged fintech companies across all market capitalizations. Holdings include online brokers like Robinhood with strong trading volumes and new product launches, and business management software providers like ServiceTitan showing strong revenue growth. |
Digital Banking Online Brokerage Business Software Financial Services Technology | |
Capital MarketsElectronic trading platforms and derivatives marketplaces benefited from robust trading activity in volatile markets. Tradeweb Markets showed strong volume trends with credit products up 39% and continued market share gains versus competitors. |
Electronic Trading Market Volatility Trading Volumes Fixed Income Derivatives | |
E-commerceMercadoLibre led performance after reporting strong quarterly results with 37% revenue growth and 44% operating income growth. The company continues posting above-market growth with gross merchandise volume up 56% and remains a prime beneficiary of secular e-commerce growth in Latin America. |
Latin America Digital Marketplace Revenue Growth Market Share Online Commerce | |
Trade PolicyHigher trade tariffs expected to increase costs, crimp profits, and temper economic growth. Trade policy uncertainty creates challenges for decision-making, though the Fund's service-based holdings are relatively insulated from direct tariff impacts on imported goods. |
Tariffs Economic Impact Policy Uncertainty Service Businesses Cost Inflation | |
| 2024 Q4 |
FinTechThe fund focuses on fintech companies at the intersection of financial services and technology, benefiting from secular trends including growing demand for data, electronification of capital markets, shift to electronic payments, rise of e-commerce, and digital transformation across financial institutions. These trends continue to drive digitization of the financial sector. |
Digital Payments Financial Technology Electronic Trading Digital Banking Payment Processing |
PaymentsStrong performance from global payment companies including Visa and Fiserv, with double-digit gains driven by robust quarterly results and positive outlook. International rollout of Clover payment platform for small businesses showing strong growth momentum with revenue growing over 25%. |
Payment Processing Digital Payments Transaction Processing Payment Platforms Merchant Services | |
Capital MarketsExcellent performance led by Interactive Brokers with 26.9% share price appreciation, driven by 30% account growth and 33% client asset growth from international investors seeking U.S. market access. Republican election sweep boosted expectations for heightened capital markets activity and more favorable regulatory environment. |
Brokerage Trading Platforms Market Access Financial Services Investment Platforms | |
E-commerceMercadoLibre faced margin pressure from temporary factors and investments for long-term growth, including credit portfolio expansion and distribution network investments. Management willing to sacrifice near-term profitability for faster growth and higher cash flow over the long term in competitive Latin American markets. |
Online Marketplace Digital Commerce Latin America Financial Services Digital Payments | |
| 2024 Q3 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across all market capitalizations and geographies. Sixteen holdings have risen more than 30% this year, representing 42% of net assets, operating across consumer credit, enterprise software, insurance, asset management, payments, and brokerage sectors. |
Financial Technology Digital Payments InsurTech WealthTech Enterprise Software |
PaymentsPayments represented 16.3% of net assets as of September 30, 2024. The fund maintains positions in leading payment processors like Mastercard and Visa, while benefiting from strength in companies like MercadoLibre which saw 86% growth in total payment volume. |
Digital Payments Payment Processing Transaction Volume Merchant Acquiring | |
Capital MarketsCapital Markets represented 9.7% of net assets, with higher exposure adding value during the quarter. The fund holds positions in companies like S&P Global and benefits from data and analytics services that support financial markets infrastructure. |
Financial Data Market Infrastructure Analytics Trading Platforms | |
E-commerceE-Commerce represented 5.6% of net assets with strength driven by MercadoLibre, which continues to grow rapidly despite its dominant position in Latin America. Commerce revenue grew 131% on a constant currency basis with 83% growth in gross merchandise value. |
Online Retail Digital Commerce Marketplace Latin America | |
| 2024 Q2 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across seven investment themes including Tech-Enabled Financials, Information Services, Payments, Enterprise Software, Capital Markets, E-Commerce, and Digital IT Services. Despite sector underperformance relative to broader markets, fintech fundamentals remain strong with mid-teens earnings growth across the fund. |
Financial Technology Digital Payments Enterprise Software Capital Markets Information Services |
Private CreditThe fund is investing in the growth of private credit in life insurance investment portfolios, where insurance companies create stable funding by selling multi-year fixed annuities and investing proceeds in highly rated private credit with higher yields. This illiquidity premium provides competitive advantages to well-managed annuity providers like Apollo and KKR's insurance subsidiaries. |
Alternative Credit Insurance Annuities Illiquidity Premium Asset Management | |
AIWhile GenAI has captured market imagination, the fund focuses on investing in strong businesses that will be improved by AI even if improvement takes time to materialize. Examples include FactSet's GenAI products for earnings analysis and Intuit's AI-powered digital assistant across product lines, though these are viewed as evolutionary rather than revolutionary advancements. |
Artificial Intelligence Machine Learning Automation Digital Transformation Software | |
Capital MarketsFavorable stock selection in Capital Markets contributed most to relative performance, with companies like Interactive Brokers benefiting from client account growth and high interest rates, while investment banks like Houlihan Lokey performed well on expectations for improved M&A activity from stabilizing rates and significant private equity dry powder. |
Investment Banking Electronic Trading M&A Activity Interest Rates Private Equity | |
| 2024 Q1 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across seven investment themes including Tech-Enabled Financials, Payments, Capital Markets, and Information Services. Digital transformation of financial services remains a large, multi-decade growth opportunity despite near-term cyclical headwinds in IT spending. |
Digital transformation Financial technology Payment processing Enterprise software Cloud-based solutions |
PaymentsPayments was a standout theme with double-digit gains from global payment companies Mastercard and Fiserv. Mastercard reported 13% revenue growth and 20% EPS growth with healthy spending volume and outsized growth in international markets and cross-border transactions. |
Payment processing Cross-border transactions Point-of-sale systems Digital payments Transaction volume | |
Capital MarketsAlternative asset manager Apollo Global Management outperformed after reporting strong financial results with 19% growth in assets under management and 27% EPS growth. Management maintained guidance for 15% to 20% growth in fee-related earnings despite dovish interest rate outlook. |
Alternative assets Asset management Fee-related earnings Private credit Capital deployment | |
AIIntapp's AI capabilities continuously improve product effectiveness and provide competitive advantages in serving professional services firms. The company's proprietary graph data model is better equipped for professional services needs than traditional databases. |
Artificial intelligence Graph data model Professional services Product effectiveness Competitive advantage | |
| 2023 Q3 |
FinTechThe fund focuses on competitively advantaged, growing fintech companies across all market capitalizations and geographies. Many fintech stocks have already gone through their own version of a recession with multiples near decade lows, but outlooks are more promising due to cost restructuring and focus on profitability. |
Financial Technology Digital Payments Software Innovation Growth |
PaymentsPerformance was bolstered by gains from Mastercard and Global Payments. Mastercard continued double-digit earnings growth with resilient payment volumes, while Global Payments benefited from better-than-expected results and market share gains. |
Digital Payments Payment Processing Transaction Volume Market Share Growth | |
Capital MarketsStock-specific strength more than offset the Fund's higher exposure to this lagging category. Tradeweb led the way as trading activity picked up following a slow start to the year, with the company poised to return to double-digit revenue growth. |
Electronic Trading Bond Trading Market Share Revenue Growth Trading Volume | |
| 2023 Q2 |
PaymentsNetwork International received takeover offers and was acquired by Brookfield for $2.8 billion. Visa announced acquisition of Brazilian company Pismo for $1 billion. M&A activity picking up in payments sector with valuations at attractive levels. |
Digital Payments Payment Processing M&A Fintech Acquisitions |
AIMarket leadership driven by excitement over artificial intelligence potential. Large technology companies gained from AI adoption expectations. Endava believes generative AI will stimulate demand for building AI tools and increase internal efficiency. |
Artificial Intelligence Technology Generative AI Software Development Efficiency | |
Capital MarketsElectronic trading platforms MarketAxess and Tradeweb impacted by slowdown in trading activity. S&P Global benefited from rebounding debt issuance and stronger equity markets. Non-financial corporate bond issuance up double digits during quarter. |
Electronic Trading Bond Markets Debt Issuance Trading Volumes Market Data | |
Private CreditTighter lending standards by banks creating opportunities for private credit providers like Apollo Global Management. Private credit has $1.3 trillion in assets under management, tripled in last 10 years, expected to exceed $2 trillion in five years. |
Alternative Lending Non-Bank Lenders Asset Management Credit Markets Growth | |
E-commerceShopify shares continued upward trajectory with solid quarterly results showing 15% growth in gross merchandise value and 25% revenue growth. Sale of capital-intensive logistics business to Flexport well received by investors. |
Digital Commerce Merchant Solutions Revenue Growth Logistics Software | |
| 2023 Q1 |
FinTechThe Fund focuses on competitively advantaged, growing fintech companies across seven investment themes including Payments, Information Services, Tech-Enabled Financials, and Enterprise Software. Private market valuations for fintech companies are starting to catch up to steep drops in public markets, with reduced private capital investment expected to temper competitive intensity and increase profitability for publicly traded incumbents. |
Payments Software Digital Financial Services Technology |
AIThe manager is monitoring the impacts of generative artificial intelligence on the fintech landscape, noting rapid advances in large language models like ChatGPT. Some holdings are already incorporating AI into operations, while others found AI-written software contained bugs and security risks. It's still very early days in AI adoption. |
Artificial Intelligence Automation ChatGPT Machine Learning | |
Capital MarketsStrength in Capital Markets was attributable to double-digit gains from market operators MarketAxess, Tradeweb Markets, and CME Group, as these businesses benefited from a pickup in trading activity. Trading activity at these companies tends to rise during periods of market volatility and economic uncertainty. |
Trading Exchanges Market Data Volatility | |
Credit StressThe sudden failures of Silicon Valley Bank and Signature Bank exacerbated market sell-off in early March, with federal regulators quickly intervening to prevent contagion. The key risk has shifted from rapid bank runs to a slower-motion credit crunch, with regional banks reporting they have already reduced lending or plan to do so soon. |
Banking Credit Regional Banks Lending | |
PaymentsPayments represented 22.1% of net assets as of March 31, 2023. The Fund has meaningful lower exposure to the lagging Payments theme relative to the Benchmark. GICS reclassified payment stocks from Information Technology to Financials during the quarter, with eight companies including Visa and Mastercard moved to Financials. |
Digital Payments Processing Transaction Electronic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2026 | Fund Letters | Josh Saltman | NEPT | Neptune Insurance Holdings Inc. | Financials | Property & Casualty Insurance | Bull | New York Stock Exchange | Capital-light, Flood Insurance, Mga, Regulation, underwriting | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | JKHY | Jack Henry & Associates, Inc. | Financials | Transaction & Payment Processing Services | Bull | NASDAQ | Automation, Core banking, Margins, market share, recurring revenue | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | FICO | Fair Isaac Corporation | Information Technology | Application Software | Bull | New York Stock Exchange | analytics, credit scoring, Licensing, Mortgage, Pricing power | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | HOOD | Robinhood Markets, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Crypto, Engagement, monetization, platform, Retail trading | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | Competition, ecommerce, Ecosystem, Fintech, Latin America | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | GWRE | Guidewire Software, Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | ARR, cloud migration, Insurance-software, Margins, TAM | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | MS | Morgan Stanley | Financials | Investment Banking & Brokerage | Bull | New York Stock Exchange | capital return, diversification, Net Inflows, ROE, wealth management | Login |
| Feb 18, 2026 | Fund Letters | Josh Saltman | SPGI | S&P Global Inc. | Financials | Financial Exchanges & Data | Bull | New York Stock Exchange | Data, Issuance, Margins, oligopoly, Ratings | Login |
| Nov 13, 2025 | Fund Letters | Josh Saltman | HOOD | Robinhood Markets, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, Engagement, Fintech, growth, Margins, monetization, Options, Regulation | Login |
| Nov 13, 2025 | Fund Letters | Josh Saltman | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, Derivatives, Execution, Fintech, Global, Interest, Margins, Scalability | Login |
| Nov 13, 2025 | Fund Letters | Josh Saltman | SHOP CN | Shopify Inc. | Information Technology | E-commerce platforms | Bull | TSX | ecommerce, Fintech, Logistics, operating leverage, Payments, platform, Software, Subscriptions | Login |
| Nov 13, 2025 | Fund Letters | Josh Saltman | FICO | Fair Isaac Corporation | Information Technology | Credit scoring & decision analytics software | Bull | NYSE | analytics, buybacks, Credit, Moats, Pricing power, Regulation, Scoring, Software | Login |
| Nov 13, 2025 | Fund Letters | Josh Saltman | COF | Capital One Financial Corporation | Financials | Credit card & consumer lending | Bull | NYSE | buybacks, Capital, consumer finance, credit cards, Cycle, Data, Lending, underwriting | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | TTAN | ServiceTitan, Inc. | Information Technology | Application Software | Bull | NASDAQ | Business Management Software, Commercial Markets, enterprise customers, Field Service, margin expansion, private equity, SaaS | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | SQ | Block, Inc. | Information Technology | Transaction & Payment Processing Services | Bull | NYSE | Cash App, Ecosystem, financial services, innovation, Point of Sale, Rule of 40, small business | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | TW | Tradeweb Markets Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | Capital markets, Electronic Trading, Electronification, fixed income, innovation, market share, network effects | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | PGR | The Progressive Corporation | Financials | Property & Casualty Insurance | Bull | NYSE | Auto Insurance, Best-in-class, defensive, market share, Property & Casualty, underwriting | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | HOOD | Robinhood Markets, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | AI-Powered Tools, digital banking, Gold Subscribers, market share, Online Broker, product innovation, trading volumes | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | digital payments, e-commerce, Fintech, growth, Latin America, marketplace, network effects | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | KKR | KKR & Co. Inc. | Financials | Asset Management & Custody Banks | Bull | NYSE | alternative assets, asset management, diversified products, Fundraising, Investment Track Record, private equity | Login |
| Mar 31, 2025 | Fund Letters | Baron FinTech Fund | APO | Apollo Global Management, Inc. | Financials | Asset Management & Custody Banks | Bull | NYSE | alternative assets, asset management, Credit Focus, Differentiated Strategy, Strong Management | Login |
| Sep 30, 2024 | Fund Letters | Baron FinTech Fund | FICO | Fair Isaac Corporation | Software & Services | Application Software | Bull | NYSE | credit scoring, Data Analytics, FICO Scores, Financial Services Technology, Interest Rate Sensitive, Mortgage Originations, Software | Login |
| Sep 30, 2024 | Fund Letters | Baron FinTech Fund | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | Credit Business, digital payments, e-commerce, Fintech, Latin America, Logistics, market share gains, network effects | Login |
| Sep 30, 2024 | Fund Letters | Baron FinTech Fund | GWRE | Guidewire Software, Inc. | Software & Services | Application Software | Bull | NYSE | Annual Recurring Revenue, cloud transition, cross-selling, Insurance-software, market leadership, Property & Casualty, SaaS, subscription revenue | Login |
| Sep 30, 2024 | Fund Letters | Baron FinTech Fund | TWFG | TWFG, Inc. | Financials | Insurance Brokers | Bull | NASDAQ | Capital-light, Commission Revenue, founder-led, Independent Agency, insurance brokerage, IPO, M&A, market share gains, Property & Casualty | Login |
| Sep 30, 2024 | Fund Letters | Baron FinTech Fund | PRI | Primerica, Inc. | Financials | Life & Health Insurance | Bull | NYSE | asset-light, financial planning, Independent Contractors, life insurance, Middle Income, Multi-level Marketing, ROE, Share Buybacks, Term Life | Login |
| Mar 31, 2024 | Fund Letters | Baron FinTech Fund | NU | Nu Holdings Ltd. | Financials | Diversified Banks | Bull | NYSE | Customer Acquisition, digital banking, digital distribution, Emerging markets, Fintech, Latin America, market share | Login |
| Mar 31, 2024 | Fund Letters | Baron FinTech Fund | APO | Apollo Global Management, Inc. | Financials | Asset Management & Custody Banks | Bull | NYSE | alternative assets, asset management, capital deployment, fee growth, Fundraising, High Net Worth, Private Credit | Login |
| Mar 31, 2024 | Fund Letters | Baron FinTech Fund | ENDV | Endava plc | Information Technology | IT Consulting & Other Services | Bull | NYSE | Cost Restructuring, cyclical headwinds, Digital transformation, discretionary spending, Enterprise software, IT services | Login |
| Mar 31, 2024 | Fund Letters | Baron FinTech Fund | GLOB | Globant S.A. | Information Technology | IT Consulting & Other Services | Bull | NYSE | Acquisitions, digital marketing, Geographic Diversification, IT services, market share, Outsourcing, Software Development | Login |
| Mar 31, 2024 | Fund Letters | Baron FinTech Fund | PGR | The Progressive Corporation | Financials | Property & Casualty Insurance | Bull | NYSE | advertising, Auto Insurance, Margins, market share, Property & Casualty Insurance, Rate Increases, underwriting | Login |
| Sep 30, 2023 | Fund Letters | Baron FinTech Fund | APO | Apollo Global Management, Inc. | Financials | Asset Management & Custody Banks | Bull | NYSE | Alternative Asset Manager, Annuities, Banking Distress, Higher Yields, Insurance, market share gains, Private Credit | Login |
| Sep 30, 2023 | Fund Letters | Baron FinTech Fund | MORN | Morningstar, Inc. | Financials | Research & Consulting Services | Bull | NASDAQ | Data Assets, financial data, Investment Research, Margin recovery, operational efficiency, Pricing power, subscription revenue | Login |
| Sep 30, 2023 | Fund Letters | Baron FinTech Fund | CARTRADE.NS | Tradeweb Markets Inc. | Financials | Financial Exchanges & Data | Bull | NASDAQ | corporate bonds, Electronic Trading, Electronification, fixed income, Interest Rate Trading, market share gains, network effects | Login |
| Sep 30, 2023 | Fund Letters | Baron FinTech Fund | ACGL | Arch Capital Group Ltd. | Financials | Property & Casualty Insurance | Bull | NASDAQ | book value growth, Cycle Management, Data Analytics, Hard Market, Property & Casualty Insurance, ROE, underwriting discipline | Login |
| Sep 30, 2023 | Fund Letters | Baron FinTech Fund | INTU | Intuit Inc. | Information Technology | Application Software | Bull | NASDAQ | Accounting Software, Artificial Intelligence, Higher-Value Services, market leadership, SaaS, small business, tax preparation | Login |
| TICKER | COMMENTARY |
|---|---|
| APO | The decision to add to Apollo was driven by a pronounced valuation disconnect as the stock experienced a peak-to-trough drawdown of approximately 30% from its 2025 highs. Apollo retains a core position in the portfolio with our conviction in its key credit franchise. |
| COF | We added to Capital One Financial Corporation, which was a core new addition in the prior quarter. |
| CWAN | With Clearwater, the market was overly focused on the debt and large acquisitions while missing how core Clearwater was growing strongly still and had a tailwind from rate cuts. Clearwater Analytics ended getting bought out and would've netted me a large gain but in the meantime due to the size of the position I took and the options leverage, the weak performance was causing me to question my conviction until I decided to sell my position for a 30% loss, 2 weeks before the buyout news came through. |
| FI | Notable detractors from performance came from Fiserv (-43bps absolute and -39bps relative) |
| FICO | Fair Isaac Corporation (FICO), a data and analytics company focused on predicting consumer behavior, contributed to performance. FICO reported strong quarterly financial results and solid fiscal 2026 guidance, which calls for 28% EPS growth. The company also launched its new Direct Licensing Program for mortgage lending, which provides greater flexibility to monetize its intellectual property. |
| GWRE | Shares of P&C insurance software vendor Guidewire Software, Inc. declined during the quarter following strong gains earlier in the year, as the broader software sector came under pressure. After a multi-year transition period, we think Guidewire's cloud migration is largely complete. We believe cloud will be the sole path forward, with annual recurring revenue benefiting from new customer wins and migrations of existing customers to InsuranceSuite Cloud. |
| HLI | global investment bank Houlihan Lokey, Inc. presented a drag in Financials. |
| HOOD | Robinhood Markets, Inc. is a digital brokerage platform serving retail investors. Shares detracted during the quarter following robust performance over the first nine months of the year. While overall activity levels remain strong, Robinhood experienced some softening in customer engagement in November, with cryptocurrency trading volumes in particular declining on both a month-over-month and year-over-year basis. |
| IBKR | Interactive Brokers saw weakness amid interest-rate uncertainty. |
| INTU | ServiceNow (NOW) and Intuit (INTU) exemplify this dynamic, advancing meaningful AI initiatives that enhance customer value and deepen competitive advantages. Intuit is deploying intelligent agents and conversational tools like 'Ask Anything' to simplify complex financial tasks across QuickBooks and TurboTax. |
| JKHY | Jack Henry & Associates, Inc. is a leading provider of technology solutions for community banks and credit unions. Shares rose after the company reported better-than-expected quarterly results and raised financial guidance. Adjusted revenue grew 9% and earnings per share increased 21% in the quarter, reflecting a favorable demand environment, market share gains, and strong margin expansion. |
| KKR | Over the prior two years, KKR was one of the Fund's strongest contributors. From the end of 2022 through the end of 2024, the shares more than tripled, rising roughly 80% in 2023 and another 80% in 2024, as the market began to recognize the earnings power of its asset-management and insurance platforms. This year, the stock told a different story: in 2025 it was down about 13% and was roughly 23% below its January peak. Strip away the stock-price swings, and the business itself has continued to grow. Fee-related earnings, insurance earnings, and long-dated capital have all moved higher, even as market sentiment toward rates, credit, and capital flows into alternatives has become more cautious. |
| LPLA | Additionally, a position in the leading US independent broker-dealer LPL Financial was established. LPL is well positioned to benefit from the ongoing shift toward fee-based wealth management and greater adviser independence. The company has delivered impressive organic revenue growth over time, targeting the 7–13% range, reflecting strong advisor recruitment and the firm's ongoing ability to attract advisers who are switching platforms. This momentum has translated into consistent net new asset inflows and robust revenue growth, while technology investments continue to enhance their platform stickiness and operating leverage. Although LPL does possess interest rate sensitivity through its cash sweep program, which is a meaningful earnings contributor, we are comfortable that consensus and buyside expectations already embed a prudent buffer for interest rate cuts through to 2027. Trading at a reasonable valuation relative to its growth profile and capital return potential, LPL offers a compelling risk-reward profile and exposure to structural tailwinds in wealth management. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| MELI | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| MS | During the quarter, the Fund invested in Morgan Stanley, a leading global investment bank and wealth management firm. Morgan Stanley has successfully diversified its business beyond cyclical banking and trading fees into more recurring wealth and investment management. These businesses collectively oversee $9.3 trillion in client assets that generate predictable, capital-light revenue that grows from inflows and market appreciation. |
| NU | Since our mid-year update, Nubank's shares increased 37%, bringing full-year performance to +63%. This performance has been driven primarily by fundamentals, with earnings growing approximately 42% over the same period. Brazil remains a powerful profit engine, with high customer engagement, improving risk-adjusted returns, and expanding penetration across consumer and SME banking. Mexico continues to emerge as the next major growth vector: customer penetration has reached ~14% of the population. |
| SCHW | We also added to The Charles Schwab Corporation, which is benefiting from positive earnings revisions, expanding margins, and higher capital returns after having repaid nearly all of its high cost funding. |
| SHOP | Shopify Inc. is a cloud-based software provider for multi-channel commerce. Shares rose 8.3% in the fourth quarter, finishing 2025 up 51.1% on strong financial results that outperformed Street expectations. The company is demonstrating rapid growth at scale with gross merchandise value (GMV) and revenues each growing over 30% year-on-year. |
| SPGI | Leading rating agency and data provider S&P Global Inc. contributed to performance. Shares rebounded from a pullback in September that stemmed from a competitor's cautious commentary around market demand and margins. S&P Global alleviated these concerns by delivering strong third quarter results and raising its full-year financial guidance. |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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