6 days ago
6
Soumya Eswaran
Tue, November 11, 2025 astatine 6:45 AM CST 3 min read
Baron Funds, an concern absorption company, released its “Baron Technology Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. US equities rallied successful the 3rd 4th pursuing the erstwhile quarter. In the 3rd quarter, the money returned 5.89% (Institutional Shares) but underperformed the MSCI ACWI Information Technology Index’s (the Benchmark) 12.76% return, Invesco QQQ Trust’s (the QQQ) 8.94% return, and the S&P 500 index’s 8.12% return. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.
In its third-quarter 2025 capitalist letter, Baron Technology Fund highlighted stocks specified arsenic Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) offers optical and photonic products that run done Cloud & Networking and Industrial Tech segments. The one-month instrumentality of Lumentum Holdings Inc. (NASDAQ:LITE) was 65.77%, and its shares gained 199.93% of their worth implicit the past 52 weeks. On November 10, 2025, Lumentum Holdings Inc. (NASDAQ:LITE) banal closed astatine $259.89 per share, with a marketplace capitalization of $18.429 billion.
Baron Technology Fund stated the pursuing regarding Lumentum Holdings Inc. (NASDAQ:LITE) successful its 3rd 4th 2025 capitalist letter:
"We initiated a presumption successful Lumentum Holdings Inc. (NASDAQ:LITE) this quarter. The institution is simply a starring photonics and optical components institution specializing successful lasers (light emitters) utilized for optical connection wrong information centers. As information centers go larger and much communication-intensive, the manufacture is transitioning toward newer classes of laser technology, an country wherever Lumentum holds a starring marketplace share. The proviso of these precocious lasers remains structurally constrained, positioning Lumentum to workout pricing powerfulness and summation stock successful the photonics industry. Moreover, Lumentum’s enactment successful next-generation optical technologies, specified arsenic co-packaged optics (optical components integrated straight with silicon chips) and optical circuit switching (enabling nonstop optical routing without electrical conversion), positions the institution good to seizure emerging markets that could redefine information halfway architectures. These technologies heighten performance, trim powerfulness losses, and grow the TAM for optical solutions. We judge Lumentum is exceptionally good positioned to payment from some the secular maturation of accepted optical connection and the emergence of caller markets that unfastened monolithic incremental opportunities successful the buildout of the AI infrastructure ecosystem."
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