Baron Discovery Fund invested in Wingstop due to quality and growth prospects

From Yahoo Finance: 2025-05-19 11:28:00

Baron Funds released their Baron Discovery Fund Q1 2025 investor letter, showing a 6.17% decline outperforming the Russell 2000 Growth Index. The market dropped due to fears of inflation and economic slowdown from Trump’s tariff enactment, escalating after April 2nd with trade war concerns. Check out the fund’s top holdings for insights.

Wingstop Inc. (NASDAQ:WING) was highlighted in the Q1 investor letter as a new position. The restaurant company’s stock had a one-month return of 52.30% and closed at $321.08 per share on May 16, 2025. Baron Funds invested in Wingstop due to its quality, valuation, and growth prospects despite recent underperformance.

Wingstop Inc. (NASDAQ:WING) saw revenue grow 17.4% year-over-year in Q1 2025, reaching $171 million. While the stock has potential, Baron Funds believes AI stocks offer better returns in a shorter timeframe. Wingstop Inc. was not among the 30 most popular stocks for hedge funds, with 36 portfolios holding it at the end of Q4.

In another article, Wingstop Inc. (NASDAQ:WING) was discussed along with the best restaurant stocks to buy according to hedge funds. For more investor letters and insights, visit the hedge fund investor letters Q1 2025 page. This article was originally published on Insider Monkey.



Read more at Yahoo Finance: Baron Discovery Fund Added Wingstop (WING) on a Dip