Baron Capitalan investment management firm, published its Q1 2026 investor letter for the “Baron Small Cap Fund.” A copy of the letter can be downloaded here. Baron Small Cap Fund was down 7.90% (institutional stocks) in the first quarter of 2026, lagging the -2.81% return of the Russell 2000 Growth Index. The first quarter began with optimism driven by expectations of higher growth and interest rate cuts, while market sentiment changed at the end of the quarter. The launch of new AI applications rattled markets due to fears of disruption and long-term effects on the software, causing stocks in these sectors to fall. In late February, the Iran war caused oil prices to skyrocket, causing interest rates and inflation to rise. Also, check out the Fund’s top five holdings to learn your best picks in 2026.
In its Q1 2026 investor letter, Baron Small Cap Fund highlighted Once Upon A Farm, PBC (NYSE:OFRM) as a newly added position. Once Upon A Farm, PBC (NYSE:OFRM) is a publicly traded company that produces and sells pouches of organic baby food, children’s meals and snacks. On May 4, 2026, Once Upon A Farm, PBC (NYSE:OFRM) closed at $14.73 per share. Once Upon A Farm, PBC (NYSE:OFRM)’s monthly performance was -9.35%. Once Upon A Farm, PBC (NYSE:OFRM) has a market capitalization of $616.91 million.
Baron Small Cap Fund stated the following regarding Once Upon A Farm, PBC (NYSE:OFRM) in its Q1 2026 investor letter:
“We started a position in Once upon a farm, PBC (NYSE:OFRM) during its IPO. The company is a rapidly growing leader in modern infant nutrition, offering innovative, nutrient-packed organic foods. Their products are made without added sugar, without preservatives and nothing artificial. Once Upon a Farm is led by industry veteran John Foraker, who ran Annie’s as a public company, who joined Jennifer Garner to help build the company. We believe Once Upon a Farm is one of the most attractive emerging brands in natural and organic foods, with a differentiated product, strong management and a still-early distribution footprint that we expect to drive many years of compound growth.
Once Upon a Farm products are unique through their product technology. Their core bags are produced using high cold pressure, never heating above 40 degrees, which preserves nutrients and produces a homemade flavor and texture. Traditional baby food manufacturers rely on high-temperature processing to create shelf-stable products, a method that compromises nutritional quality. The quality of the product has translated into a loyal and vocal consumer base with high Net Promoter Scores and strong word-of-mouth marketing…” (Click here to read the full text)