Baron Funds, an investment management company, released its “Baron FinTech Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund fell 4.29% (Institutional Shares) compared to a 1.90% decline for the FactSet Global FinTech Index (Benchmark). Since its inception, the fund has appreciated at an annualized rate of 11.10%, compared to a 4.00% return for the Benchmark. The market strength in the quarter was primarily driven by the resumption of Federal Reserve (the Fed) rate cuts and AI optimism. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Baron FinTech Fund highlighted stocks such as Capital One Financial Corporation (NYSE:COF). Capital One Financial Corporation (NYSE:COF) is a financial services holding company for Capital One, National Association that offers various financial products and services. The one-month return of Capital One Financial Corporation (NYSE:COF) was -2.10%, and its shares gained 15.03% of their value over the last 52 weeks. On November 14, 2025, Capital One Financial Corporation (NYSE:COF) stock closed at $211.15 per share, with a market capitalization of $137.827 billion.
Baron FinTech Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) in its third quarter 2025 investor letter:
“During the quarter, we invested in Capital One Financial Corporation (NYSE:COF), a leading credit card issuer. We believe Capital One’s acquisition of Discover is a game-changer that will create significant value through network ownership and market share gains.
