Baron Funds, an funding administration firm, launched its “Baron Alternative Fund” second-quarter 2025 investor letter. A duplicate of the letter could be downloaded right here. Within the second quarter, the fund posted stable returns, rising 23.27% (Institutional Shares), exceeding the Russell 3000 Development Index’s (the Benchmark) 17.55% acquire and the S&P 500 Index’s 10.94% acquire. The Fund appreciated 8.52% for the primary half, in comparison with 5.80% and 6.20% returns for the indexes. As well as, you’ll be able to verify the fund’s prime 5 holdings to find out its finest picks for 2025.
In its second-quarter 2025 investor letter, Baron Alternative Fund highlighted shares reminiscent of Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops varied semiconductor and infrastructure software program options. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 3.96%, and its shares gained 77.89% of their worth over the past 52 weeks. On August 19, 2025, Broadcom Inc. (NASDAQ:AVGO) inventory closed at $294.91 per share, with a market capitalization of $1.387 trillion.
Baron Alternative Fund acknowledged the next concerning Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) is a number one semiconductor and enterprise software program firm, producing roughly 60% of income from semiconductors and 40% from software program. The corporate is strategically positioned on the intersection of high-performance AI compute and networking infrastructure, whereas additionally demonstrating disciplined execution in software program. Broadcom has continued its management in networking silicon from the cloud period to the AI period and emerged as essentially the most dependable silicon companion for AI foundational mannequin builders to design customized chips to coach and inference their frontier fashions. Shares rose through the quarter on continued momentum in Broadcom’s AI product traces. In its April quarter, Broadcom reported over $15 billion in complete income, up 20%; over $4.4 billion in AI income, up 40%; and over $6.6 billion in software program income, up 25%. Broadcom continued to show wonderful profitability, with working margins over 65% and free money circulation margins at 43%. On the corporate’s earnings name and through different public appearances, Broadcom CEO Hock Tan confirmed that each one packages supporting the corporate’s projected $60 billion to $90 billion serviceable addressable AI market by 2027 have been “on observe,” inference demand had emerged as an vital AI income alternative, and that the corporate’s AI income progress ought to speed up to the 50% to 60% degree for fiscal years 2025 and 2026.”
