Baron Funds, an investment management company, published its Q3 2025 “Baron Fifth Avenue Growth Fund” investor letter. A copy of the letter can be downloaded here. In Q3 2025, the fund gained 5.7% (institutional stocks) compared to the Russell 1000 Growth Index’s (R1KG) gain of 10.5% and the S&P 500 Index’s (SPX) return of 8.1%. The fund is up 14.4% year to date compared to 17.2% and 14.8% for the indices. Additionally, you can check out the fund’s top five holdings to determine your best picks for 2025.
In its Q3 2025 investor letter, Baron Fifth Avenue Growth Fund highlighted stocks like Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. Meta Platforms, Inc. (NASDAQ:META)’s monthly performance was 2.16% and its shares gained 4.44% of its value in the last 52 weeks. On December 1, 2025, shares of Meta Platforms, Inc. (NASDAQ:META) closed at $640.87 per share, with a market capitalization of $1.615 million.
Baron Fifth Avenue Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2025 investor letter:
“In addition to this journey, the quarterly earnings reporting season offered an avalanche of data points supporting the significant opportunity behind AI in terms of both productivity improvements and incremental revenue: • Metaplatformas, Inc. (NASDAQ:META) reported quarterly revenue growth of 22% and highlighted AI as a tailwind for advertisers’ engagement and return on ad spend, leading the company to raise estimated 2026 capital spending expectations to $100 billion, $30 billion higher than Wall Street expectations. We thought Mark Zuckerberg’s comments on “The first glimpses of AI improving itself” were particularly insightful.8 If AI can improve itself, a self-reinforcing flywheel may emerge resulting in superintelligence.”
Meta Platforms, Inc. (NASDAQ:META) comes in at number three on our list of the 30 most popular stocks among hedge funds. According to our database, Meta Platforms, Inc. (NASDAQ:META) had 273 hedge fund portfolios at the end of the third quarter, up from 260 in the previous quarter. In the third quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $51.2 billion, up 26% or 25% in constant currency. While we recognize the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, we believe certain AI stocks offer greater upside 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.