Baron Funds, an funding administration firm, launched its “Baron Rising Markets Fund” third-quarter 2025 investor letter. A replica of the letter might be downloaded right here. The fund returned 10.89% (Institutional Shares) within the third quarter in comparison with a ten.64% return for the MSCI Rising Markets Index (the Benchmark) and a 11.48% return for the MSCI Rising Markets IMI Development Index (the Proxy Benchmark). YTD, the fund returned 31.79% in comparison with 27.53% and 28.19% for the indexes. The agency was glad with the quarterly outcomes, significantly given the underperformance of Indian equities throughout that interval, however it’s nonetheless properly forward of each the Benchmark and the Proxy Benchmark on a year-to-date and one-year trailing foundation. As well as, please examine the fund’s prime 5 holdings to know its greatest picks in 2025.
In its third-quarter 2025 investor letter, Baron Rising Markets Fund highlighted shares akin to Alibaba Group Holding Restricted (NYSE:BABA). Alibaba Group Holding Restricted (NYSE:BABA) supplies know-how infrastructure and advertising and marketing attain. The one-month return of Alibaba Group Holding Restricted (NYSE:BABA) was -1.23%, and its shares gained 75.28% of their worth over the past 52 weeks. On December 09, 2025, Alibaba Group Holding Restricted (NYSE:BABA) inventory closed at $155.96 per share, with a market capitalization of $372.126 billion.
Baron Rising Markets Fund said the next concerning Alibaba Group Holding Restricted (NYSE:BABA) in its third quarter 2025 investor letter:
“Alibaba Group Holding Restricted (NYSE:BABA) is the most important retailer and e-commerce firm in China. Alibaba operates procuring platforms Taobao and Tmall, and has companies spanning logistics, native providers, digital media, and cloud computing. Shares rose throughout the quarter as a consequence of an acceleration in cloud income, pushed by AI and optimistic momentum in fast commerce. Alibaba is ramping capital expenditures over the following three years, committing greater than $53 billion to construct out its cloud infrastructure layer and add AI capabilities to present functions, akin to shopper search. Inside the firm’s e-commerce enterprise, fast commerce is displaying sturdy early traction, and administration is targeted on considerably bettering unit economics. We retain conviction that Alibaba is properly positioned to learn from China’s ongoing development in e-commerce and cloud, though aggressive issues stay.”
Alibaba Group Holding Restricted (NYSE:BABA) is within the seventeenth place on our checklist of 30 Most Fashionable Shares Amongst Hedge Funds. As per our database, 130 hedge fund portfolios held Alibaba Group Holding Restricted (NYSE:BABA) on the finish of the third quarter, which was 101 within the earlier quarter. Within the fiscal first quarter of 2026, Alibaba Group Holding Restricted (NYSE:BABA) reported income of RMB 247.7 billion. Whereas we acknowledge the potential of Alibaba Group Holding Restricted (NYSE:BABA) as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back danger. In case you’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the greatest short-term AI inventory.
