5 days ago
5
Soumya Eswaran
Wed, February 11, 2026 astatine 8:16 AM CST 3 min read
Baron Fund, an concern absorption company, released its Q4 2025 missive for “Baron Durable Advantage Fund”. A transcript of the missive tin beryllium downloaded here. The Fund returned 2.6% successful the 4th quarter, which mirrored the S&P 500 Index’s 2.7% return. The Fund returned 16.6% successful 2025, compared to 17.9% for the Index and 16.1% summation for the Peer Group, Morningstar Large Growth Category average. Moving to 2026, successful an situation dominated by geopolitics, changing regulatory trends, and artificial intelligence, the Fund focuses connected investing successful high-quality, large-cap companies with coagulated competitory advantages, proven way record, and accordant shareholder returns. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.
In its fourth-quarter 2025 capitalist letter, Baron Durable Advantage Fund highlighted Broadcom Inc. (NASDAQ:AVGO) arsenic a notable contributor. Broadcom Inc. (NASDAQ:AVGO)is a starring semiconductor and infrastructure bundle solutions company. On February 10, 2026, Broadcom Inc. (NASDAQ:AVGO) banal closed astatine $340.44 per share. One-month instrumentality of Broadcom Inc. (NASDAQ:AVGO) was 0.16%, and its shares are up 44.04% implicit the past 12 months. Broadcom Inc. (NASDAQ:AVGO) has a marketplace capitalization of $1.614 trillion.
Baron Durable Advantage Fund stated the pursuing regarding Broadcom Inc. (NASDAQ:AVGO) successful its 4th fourth 2025 capitalist letter:
"Broadcom Inc. (NASDAQ:AVGO) is simply a starring fabless semiconductor and endeavor bundle company, generating astir 60% of gross from semiconductors and 40% from software. The institution is strategically positioned astatine the intersection of high-performance AI compute and networking infrastructure, portion besides demonstrating disciplined execution successful software. Broadcom has extended its enactment successful merchant networking silicon from the unreality epoch into the AI epoch and is regarded arsenic the astir reliable silicon spouse for AI foundational exemplary builders designing customized chips to bid frontier models. Shares roseate 5.0% successful the 4th quarter, ending 2025 up 50.6%, driven by beardown momentum successful AI, with cardinal lawsuit Google continuing to ramp and further ample customers entering important measurement production. The institution ended its fiscal 2025 with AI gross maturation of 65%, which reached $20 cardinal (nearly one-third of full revenues), with quarterly AI revenues up 10x successful the past 11 quarters. Broadcom besides announced wide AI backlog of $73 billion, which is astir fractional of the company’s full backlog of $162 billion. It present has 5 XPU (AI accelerator) customers, including Anthropic which was announced successful the past quarter. Despite the robust growth, Broadcom guided AI revenues to further accelerate successful fiscal twelvemonth 2026. In addition, VMware integration progresses and the non-AI semiconductor businesses look to beryllium bottoming, which has driven wide institution maturation to 24% successful fiscal twelvemonth 2025 with 67% EBITDA margins. We judge that Broadcom’s maturation runway is agelong arsenic an enabler of a full-stack solution arsenic request is expected to stay durable for years to travel underpinned by the AI infrastructure build-out."
English (CA) · 
English (US) · 
Spanish (MX) ·