Baron Funds released its third-quarter 2025 investor letter for the Baron Discovery Fund, showing a 10.75% year-to-date return for Institutional Shares, compared to 11.65% for the Russell 2000 Growth Index. The fund was up 2.85% in the third quarter, trailing the Index. Check the fund’s top five holdings for its best picks in 2025.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was highlighted in the Baron Discovery Fund’s investor letter, with a one-month return of -3.42% and a 280.58% gain over the last 52 weeks. On October 28, 2025, KTOS stock closed at $89.78 per share, with a market cap of $15.154 billion.

Baron Discovery Fund praised Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) in its Q3 2025 letter, attributing strong performance to a robust earnings report and new contracts amid a generational upswing in defense spending. The company’s innovative solutions and government support bolster its growth potential in the current global conflicts landscape.

Read more at Yahoo Finance: Kratos Defense & Security Solutions (KTOS) Surged on Strong Results and Continued Momentum