Baron Funds released its Q4 2025 investor letter for the Baron Discovery Fund, focusing on long-term, competitively positioned companies with untapped potential. The fund returned 0.19% in Q4, underperforming the Russell 2000 Growth Index by 1.03%. Top 10 holdings comprised 26.7% of net assets, with strong optimism for a high-growth, low-inflation environment in 2026.

In the Q4 2025 investor letter, Baron Discovery Fund highlighted Waystar Holding Corp. (NASDAQ:WAY), a healthcare payments technology company. WAY stock closed at $24.50 per share on February 3, 2026, delivering a -27.26% return in the past month and down 41.61% over the past year. Waystar Holding Corp. has a market cap of $4.687 billion.

Baron Discovery Fund initiated a position in Waystar Holding Corp. (NASDAQ:WAY), providing revenue cycle management software to healthcare providers. The company services 30,000 clients, processes 6 billion transactions annually, and is expected to generate $1 billion+ in revenues in 2025. Subscription and volume-based revenue sources contribute to Waystar’s growth.

Read more at Yahoo Finance: Here’s Why Baron Discovery Fund Betted on Waystar Holding Corp. (WAY)