Baron Capital Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The psychological portrait of Baron Capital is one of "patient capital." With 326 holdings in its portfolio, the institution might appear diversified at first glance. However, a deeper look at the concentration of its top positions reveals a "core-and-satellite" structure. Ron Baron is famous for his "owner-operator" mentality, often holding stocks for decades rather than quarters. This quarter’s data confirms that while the total number of stocks is high, the vast majority of the $33.13 billion is concentrated in a select group of high-conviction growth companies. This approach suggests an investment style that prioritizes deep fundamental research and a belief in secular growth themes—such as the electrification of transport, the digitization of financial data, and the scaling of software-as-a-service (SaaS) platforms—over short-term market timing.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

Financials (21.23%) serves as the portfolio's "intellectual infrastructure." Baron’s preference in this sector is not for traditional commercial banks, which are sensitive to interest rate spreads and credit cycles. Instead, the institution favors "financial data and exchange" companies. These are businesses that act as "toll bridges" for the global financial system—companies like MSCI Inc. and FactSet Research Systems Inc. This allocation suggests a macro judgment that while the economy may fluctuate, the demand for sophisticated financial data, indexing, and risk management tools is a permanent, non-cyclical growth trend.

From a macro perspective, this allocation reveals an institution that is optimistic about innovation but cautious about traditional economic cycles . By avoiding staples and utilities while leaning heavily into data-driven financials and tech-enabled discretionary, Baron is betting that the "digital transformation" of the global economy will continue to outpace traditional GDP growth. The concentration in the top three sectors suggests that the institution believes the "winners" in the new economy will capture a disproportionate share of the total market value, making a diversified, index-like approach suboptimal.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Tesla remains the undisputed crown jewel of the Baron Capital portfolio, representing 13.39% of the total assets. This is a classic "conviction holding" that Ron Baron has defended through numerous market cycles. This quarter, the institution made a marginal addition of 0.05% to the position, which, given the scale, is essentially a "maintenance" move. However, the portfolio weight actually decreased from 14.53% to 13.39%. This discrepancy is crucial: it indicates that the decrease in weight was driven by stock price depreciation rather than an active sell-off. Baron is not "timing" Tesla; he is riding the long-term wave of the energy transition. The motivation here is a steadfast belief in Tesla’s lead in autonomous driving, battery technology, and its potential to evolve into an AI and robotics powerhouse. For Baron, Tesla is not a car company; it is a generational technology play.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The most aggressive addition this quarter was in Shopify Inc. , where Baron more than doubled his position with a 106.19% increase . This move, involving an estimated $288 million , signals a massive shift in conviction. Shopify has evolved from a simple e-commerce tool for small businesses into a comprehensive retail operating system for brands of all sizes. Baron’s motivation likely stems from "growth acceleration mining." As Shopify integrates more AI-driven tools for merchants and expands its enterprise-level offerings (Shopify Plus), its addressable market has expanded significantly. By adding so aggressively, Baron is betting that Shopify is the primary beneficiary of the "independent brand" movement, providing a viable alternative to the Amazon ecosystem. The timing suggests Baron believes the stock’s valuation has finally aligned with its long-term growth trajectory after the post-pandemic correction.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The reduction of 16.33% in CoStar Group , realizing approximately $128 million , is a "major strategic contraction." CoStar is the leading provider of online real estate marketplaces and information. While Baron remains a significant holder, this trim suggests a "tactical defense" against the headwinds in the commercial real estate sector. As interest rates remain elevated and office vacancies persist, the growth trajectory for real estate data services may be slowing. Baron is likely "right-sizing" the position to reflect a more cautious outlook on the sector while reallocating that capital into higher-growth software opportunities like Shopify.

The complete liquidation of the $96.9 million position in Exact Sciences is a "Strategic Retreat." Exact Sciences, known for its Cologuard cancer screening test, has been a long-term holding since 2023. A total exit suggests a "logical clearing" based on a breakdown in the fundamental thesis. This could be due to increasing competition in the liquid biopsy space or concerns over the company’s path to sustained profitability. For a long-term investor like Baron, a 100% exit is a loud signal that the risk-reward profile has permanently shifted for the worse.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

Ron Baron is not backing away from growth; he is refining what "growth" means in a higher-interest-rate environment. The logic chain is clear: 1. Sold what : Mature financial services (Morningstar), challenged healthcare (Exact Sciences), and cyclical industrials/real estate (Louisiana-Pacific, CoStar). 2. Why sell : To harvest profits from peak-valuation sectors and exit positions where the competitive moat is being challenged by new technology or macro headwinds. 3. Bought what : Dominant software platforms (Shopify, Guidewire), essential business data providers (Gartner, Verisk, FactSet), and disruptive consumer brands (On Holding, Spotify). 4. Why buy : These companies possess "operating leverage" and "pricing power." They are the "toll bridges" of the digital economy, capable of growing margins even if broad economic growth is tepid.

For retail investors, the reference value lies in Baron’s unwavering long-term horizon . His refusal to sell Tesla despite its weight fluctuations, combined with his patience in building positions in "boring" but essential companies like Gartner, provides a masterclass in "compounding." However, investors should be wary of simple imitation; Baron’s massive capital base allows him to withstand volatility that would be ruinous for a smaller, less diversified portfolio.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.