Here's Why Vail Resorts (MTN) Fell in Q2

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund maintained its strong relative performance from the first quarter into the second quarter, with overall performance improving as it completely recovered from the losses experienced earlier, which were related to economic concerns stemming from newly implemented tariffs by the administration. Most of the firm’s company management teams expect the tariffs to have a minimal impact, as costs will likely be shared with suppliers and passed through in small price increases that won't significantly affect demand. As a result of this clarity, the fund appreciated by 12.78% (Institutional Shares) compared to an 11.31% gain for the Russell 2500 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Focused Growth Fund highlighted stocks such as Vail Resorts, Inc. (NYSE:MTN). Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resort and ski area operator. The one-month return of Vail Resorts, Inc. (NYSE:MTN) was -6.79%, and its shares lost 12.49% of their value over the last 52 weeks.  On July 30, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $152.88 per share, with a market capitalization of $5.68 billion.

Baron Focused Growth Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its second quarter 2025 investor letter:

"Global ski resort company Vail Resorts, Inc. (NYSE:MTN) detracted from performance on investor concerns about slowing visitation levels and the potential impact on early season pass sales for the upcoming ski season. The return of former CEO Rob Katz added uncertainty about the company’s future strategic direction, further pressuring shares. We remain investors. Vail continues to deliver consistent revenue and earnings, with roughly a third of revenue already secured in advance of the season, providing strong financial visibility and enabling more effective operational and strategic planning. We view Katz’s return positively and expect his emphasis on guest experience, pricing, and targeted acquisitions to reignite growth. Combined with a well-covered mid-single-digit dividend yield and a strong balance sheet that supports strategic growth through M&A, reinvestment in the portfolio, and share repurchases, we see an attractive long-term opportunity and the potential for multiple expansion from multi-year lows."

Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Vail Resorts, Inc. (NYSE:MTN) and shared the list of best dividend stocks from Jim Cramer’s choices. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.