Baron Funds released its second-quarter 2025 investor letter, reporting a 14.76% return for the Baron Discovery Fund (Institutional Shares), outperforming the Russell 2000 Growth Index. The fund’s year-to-date return was 7.68%, surpassing the Index’s -0.48%. Check the fund’s top five holdings for 2025’s best picks.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) saw a 31.91% one-month return and a 153.28% increase in shares over the last 52 weeks. On July 29, 2025, KTOS stock closed at $57.09 per share with a market cap of $9.613 billion. The company offers mission-critical technology solutions.

Baron Discovery Fund praised Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) in its Q2 2025 investor letter. The company’s performance contributed to strong results, driven by investments in hypersonic technology, drone engines, and more. Kratos is well-positioned for growth with increased defense spending globally.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is not among the 30 Most Popular Stocks Among Hedge Funds. However, 17 hedge fund portfolios held KTOS in Q1, down from 21 in Q4. The company reported revenue of $302.6 million in Q1, exceeding guidance. Consider AI stocks for greater potential and lower risk.

Read more at Yahoo Finance: Is Kratos Defense & Security Solutions (KTOS) Poised for an Accelerated Multi-Year Growth?