Here’s Why Baron Focused Growth Fund Invested in IDEXX Laboratories (IDXX)
Baron Funds, an investment management company, released its “Baron Focused Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund delivered strong results in the third quarter, appreciating 4.83% (Institutional Shares); however, the performance underperformed the Russell 2500 Growth Index’s (the Benchmark) 10.73% gain. The fund's underperformance stemmed from concerns over a slowdown in economic growth affecting the fund’s more economically sensitive Consumer Discretionary stocks. Furthermore, the rise in competitive pressures has adversely affected the valuations of a few of its holdings. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Baron Focused Growth Fund highlighted stocks such as IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. The one-month return of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 14.55%, and its shares gained 66.33% of their value over the last 52 weeks. On November 5, 2025, IDEXX Laboratories Inc. (NASDAQ:IDXX) stock closed at $720.21 per share, with a market capitalization of $57.51 billion.
Baron Focused Growth Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its third quarter 2025 investor letter:
"In Health Care, we invest in competitively advantaged companies that are leaders in their industries such as IDEXX Laboratories, Inc. (NASDAQ:IDXX), the leading provider of diagnostics to the veterinary industry and who is benefiting from the increase in pets that people acquired during the COVID pandemic, especially as these pets age."
IDEXX Laboratories Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held IDEXX Laboratories Inc. (NASDAQ:IDXX) at the end of the second quarter, compared to 51 in the previous quarter. IDEXX Laboratories Inc.’s (NASDAQ:IDXX) revenue increased 13% as reported and 12% organically in the third quarter of 2025. While we acknowledge the potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) 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 also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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