Baron Discovery Fund Trimmed Advanced Energy Industries (AEIS) on Valuation and Position Size

4 days ago 4

Soumya Eswaran

Wed, August 12, 2026 astatine 8:03 AM CDT 3 min read

Baron Capital, an concern absorption company, released its Q2 2026 capitalist missive for the "Baron Discovery Fund". A transcript of the missive is disposable to download here. Baron Discovery Fund appreciated by 19.08% (Institutional Shares) successful the quarter, underperforming the Russell 2000 Growth Index, which gained 25.71%. This lag was chiefly owed to a momentum-driven "AI winners" trade, with these stocks mostly contributing to the Benchmark's performance. The Fund experienced a 6.63% underperformance, mostly driven by an underweight successful strong-performing Momentum and Beta factors. The Fund prioritizes a semipermanent balanced portfolio implicit chasing momentum. The missive discussed parallels betwixt the existent AI marketplace and the precocious 1990s dot-com bubble. The steadfast remains focused connected institution fundamentals and semipermanent valuation. Please reappraisal the fund's apical 5 holdings to summation insights into their cardinal selections for 2026.

In its Q2 2026 capitalist letter, Baron Discovery Fund highlighted Advanced Energy Industries, Inc. (NASDAQ:AEIS). Advanced Energy Industries, Inc. (NASDAQ:AEIS) is simply a starring precision powerfulness conversion, measurement, and power solutions supplier for semiconductor instrumentality and information centers. On August 11, 2026, Advanced Energy Industries, Inc. (NASDAQ:AEIS) closed astatine $327.59 per share, reflecting a marketplace capitalization of $13.12 billion. Advanced Energy Industries, Inc. (NASDAQ:AEIS) posted a one-month instrumentality of 8.52%, and its shares gained 101.57% implicit the past 52 weeks.

Baron Discovery Fund stated the following regarding Advanced Energy Industries, Inc. (NASDAQ:AEIS) successful its Q2 2026 capitalist letter:

"Advanced Energy Industries, Inc. (NASDAQ:AEIS) is simply a decorator and shaper of powerfulness components that guarantee precision powerfulness transportation for extremity marketplace applications including semiconductor manufacturing, aesculapian procedures and information halfway equipment. We were meaningful buyers betwixt $50 and $110 during calendar years 2020 and 2021 erstwhile the institution was trading astatine precise debased multiples and its strategical worth was unrecognized. In the 4th we sold astir 60% of our concern astatine $375, connected the backmost of excitement astir the maturation successful AI information halfway buildouts. We judge that astatine those levels the institution was approaching our semipermanent terms target, and the presumption had grown to astir 4% of the portfolio. Both are reasons that we would merchantability according to our long-standing hazard absorption process. We truly similar the institution and the absorption squad and would look to adhd to our concern astatine little valuations."

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