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FIGS shares fall as Baron Focused Growth Fund lags in Q2
Baron Focused Growth Fund returned 13.26% in Q2, well below the Russell 2500 Growth Index’s 24.02%, with AI exposure and positioning cited as key drags.
Baron Focused Growth Fund highlighted FIGS, Inc. in its Q2 2026 investor letter, but the stock slipped even as the fund reported a strong gain for the quarter. In the fund’s letter, the investment management firm tied weaker performance to investor positioning that weighed on FIGS shares, despite describing the company as having a strong first quarter.
For the quarter, the Baron Focused Growth Fund gained 13.26%, still trailing the Russell 2500 Growth Index’s 24.02% return. The firm said concerns about AI’s impact on portfolio businesses, along with underexposure to AI infrastructure, contributed to the underperformance.
The letter also pointed to the role of market and fundamentals. While FIGS was mentioned as detracting from performance due to the share price pullback, the broader discussion said fund companies are seeing robust revenue growth and strengthening margins through enhanced client engagement and product offerings.
In the FIGS update, the outlet cited recent performance and company context from the letter. FIGS closed on August 19, 2026 at $14.49 per share, with a $2.41 billion market capitalization, and the stock was up 56.82% over one month and 109.09% over 52 weeks; the letter also said FIGS reported first-quarter revenue of $159.9 million, up 28%.