Baron Funds, an investment management company, released its “Baron Discovery Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund was up 14.76% (Institutional Shares), outperforming the 11.97% return for the Russell 2000 Growth Index. The fund was up 7.68% year-to-date, well ahead of the Index’s -0.48% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Baron Discovery Fund highlighted stocks such as Dynatrace, Inc. (NYSE:DT). Dynatrace, Inc. (NYSE:DT) offers a security platform for multi-cloud environments. The one-month return of Dynatrace, Inc. (NYSE:DT) was -4.63%, and its shares gained 27.05% of their value over the last 52 weeks. On July 30, 2025, Dynatrace, Inc. (NYSE:DT) stock closed at $53.92 per share, with a market capitalization of $16.271 billion.
Baron Discovery Fund stated the following regarding Dynatrace, Inc. (NYSE:DT) in its second quarter 2025 investor letter:
“We exited our position in Dynatrace, Inc. (NYSE:DT) in order to fund additional purchases in Dynatrace, Inc. (while at the same time not becoming overly exposed to the software industry). While we are long-term believers in the Dayforce growth opportunity, growth recently fell below our expectations, and we felt Dynatrace exhibited stronger growth opportunities both near and long term.”
A close-up view of programmer hands typing on a keyboard for a 3D security platform.
Dynatrace, Inc. (NYSE:DT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Dynatrace, Inc. (NYSE:DT) at the end of the first quarter, which was 46 in the previous quarter. While we acknowledge the potential of Dynatrace, Inc. (NYSE:DT) 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 the best short-term AI stock.
In another article, we covered Dynatrace, Inc. (NYSE:DT) and shared AI news updates on Wall Street’s radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
