Baron Fund released its Q4 2025 letter for Baron Small Cap Fund, showing a 1.56% loss in the quarter compared to Russell 2000 Growth Index’s 1.22% gain. Large-cap growth stocks led the market, with the fund trailing the index by 13.67 percentage points in 2025. The firm expects better growth for small caps in 2026.

Cognex Corporation (NASDAQ: CGNX) weighed on Baron Small Cap Fund’s performance in Q4 2025, with a one-month return of 7.46%. The stock closed at $42.37 on February 6, 2026, and has a market capitalization of $7.101 billion. The company’s forward guidance suggested continued growth but at a slower pace.

Barclays remains optimistic about Cognex Corporation (NASDAQ: CGNX) as industrial tech demand holds up. The company is not among the 30 most popular stocks among hedge funds, with 43 hedge fund portfolios holding CGNX at the end of Q3 2025. While CGNX has potential, other AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: Cognex Corporation (CGNX) Fell on Weaker-Than-Expected Guidance