Baron Funds, an investment management firm, published its 2025 Q4 Investor Letter “Baron Discovery Fund”. A copy of the letter can be downloaded here. The fund focuses on long-term, competitively positioned, well-managed companies with significant potential in untapped markets. The letter also addressed advances in AI and how humans define themselves in the changing landscape. In the fourth quarter, the fund returned 0.19% (institutional stocks), underperforming the Russell 2000 Growth Index by 1.03 percentage points. For the full year, the fund returned 10.96%, while the index returned 13.01%. The outperformance of low-quality, price-driven stocks in the short term affected the Fund’s focus on long-term valuation metrics. The top 10 holdings accounted for 26.7% of the fund’s net assets, and cash accounted for 3.3%. The fund remains strongly bullish and expects a high-growth, low-inflation environment in 2026. Review the fund’s top five holdings to learn about its key picks for 2025.

In its Q4 2025 letter to investors, Baron Discovery Fund highlighted stocks like Waystar Holding Corp. (NASDAQ:MANNER). Waystar Holding Corp. (NASDAQ:WAY) is a technology company that provides software solutions for healthcare payments. On February 3, 2026, the shares of Waystar Holding Corp. (NASDAQ:WAY) closed at $24.50 per share. Waystar Holding Corp. (NASDAQ:WAY) returned -27.26% over the past month, and its stock has fallen 41.61% over the past twelve months. Waystar Holding Corp. (NASDAQ:WAY) has a market cap of $4.687 billion.

Baron Discovery Fund stated the following about Waystar Holding Corp. (NASDAQ:WAY) in its Q4 2025 investor letter:

“We initiated a position in Waystar Holding Corp. (NASDAQ:WAY), which provides a full spectrum of revenue cycle management software to healthcare providers. The company serves 30,000 customers, representing more than 1 million different suppliers. And it processes 6 billion transactions a year, including more than $1.8 trillion in gross annual claims covering about 50% of all US patients. Waystar’s more than $1 billion in estimated revenue by 2025 is a 50/50 mix of subscription and volume-based revenue (we believe volume is a true secular producer as health care claims continue to rise).