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Baron Focused Growth Fund highlights IDEXX after a sharp 52-week slide
The fund’s Q2 2026 letter points to IDEXX’s robust revenue growth and margin gains, despite the stock down 11.2% over 52 weeks as of August 19, 2026.
Baron Capital’s Baron Focused Growth Fund released its Q2 2026 investor letter, reporting a 13.26% gain for the quarter while trailing the Russell 2500 Growth Index’s 24.02% return. The letter attributes the relative underperformance to ongoing concerns about how AI may affect portfolio businesses and to underexposure to AI infrastructure.
Within the letter, Baron Capital highlighted IDEXX Laboratories, Inc. (NASDAQ: IDXX) as part of its Health Care investing approach. IDEXX develops, manufactures, and distributes products used in companion animal veterinary care, livestock and poultry, dairy and water testing.
As of August 19, 2026, IDEXX closed at $562.20 per share, putting its market capitalization at $44.29 billion. The stock showed a 4.23% one-month return, but fell 11.19% over the prior 52 weeks.
Baron Capital also said the fund’s companies are generating strong revenue growth and strengthening margins through enhanced client engagement and product offerings, while noting many stocks remain historically undervalued. The letter adds that accelerated share repurchases are beginning, and it expects inflation and interest rates to remain stable.
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