Baron Funds, an investment management company, published its Q3 2025 “Baron FinTech Fund” investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund fell 4.29% (institutional stocks) compared to a 1.90% decline for the FactSet Global FinTech Index (benchmark). Since its creation, the fund has appreciated at an annualized rate of 11.10%, compared to a return of 4.00% for the benchmark index. Market strength in the quarter was mainly due to the resumption of Federal Reserve (Fed) rate cuts and AI optimism. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Baron FinTech Fund highlighted stocks like Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) develops digital analytics, software, and decision-making technologies and services. Fair Isaac Corporation (NYSE:FICO)’s monthly performance was 7.47% and its shares lost 23.37% of its value in the last 52 weeks. On November 14, 2025, Fair Isaac Corporation (NYSE:FICO) stock closed at $1,741.37 per share, with a market capitalization of $41.286 million.
Baron FinTech Fund stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its Q3 2025 investor letter:
“Within information services, data and analytics companies Fair Isaac Corporation (NYSE:FICO) and Verisk Analytics, Inc. hampered performance for the second consecutive quarter. Despite reporting strong quarterly results and raising full-year guidance, FICO stock underperformed due to regulatory pressure from the Federal Housing Finance Agency, and CEO Bill Pulte advocated for greater credit scoring competition in the mortgage market. We expect FICO to maintain its dominant market position and continue to grow earnings per share at a rapid pace thanks to price increases, a rebound in mortgage originations and continued growth in non-mortgage consumer loans.”
Fair Isaac Corporation (NYSE:FICO) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, Fair Isaac Corporation (NYSE:FICO) had 74 hedge fund portfolios at the end of the second quarter, up from 68 in the previous quarter. While we recognize the potential of Fair Isaac Corporation (NYSE:FICO) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.