Baron Funds released its fourth-quarter 2025 investor letter for the Baron Discovery Fund, focusing on long-term, well-managed companies with untapped potential. The fund returned 0.19% in Q4, underperforming the Russell 2000 Growth Index by 1.03 percentage points. Top 10 holdings comprised 26.7% of net assets, with cash at 3.3%.

In the same letter, Baron Discovery Fund highlighted Indie Semiconductor, Inc. (NASDAQ: INDI), a company that designs and develops semiconductor and infrastructure software solutions. Indie Semiconductor, Inc. (NASDAQ: INDI) experienced a one-month return of -4.44% and lost 10.42% over the last 52 weeks. On February 3, 2026, its stock closed at $3.66 per share.

Baron Discovery Fund mentioned buying more shares of Indie Semiconductor, Inc. (NASDAQ: INDI) in the second quarter at an average price of $1.82, despite concerns about the company’s growth. The stock ended the year at $3.53 per share.

Indie Semiconductor, Inc. (NASDAQ: INDI) is not among the 30 most popular stocks among hedge funds. However, 17 hedge fund portfolios held shares at the end of the third quarter, up from 13 in the previous quarter. While acknowledging its potential, some believe other AI stocks offer greater upside with less downside risk.

Read more at Yahoo Finance: Baron Discovery Fund Increased Its Holdings in indie Semiconductor (INDI) in 2025