Baron Small Cap Fund Sold its Position in Utz Brands (UTZ) in Q2

Baron Funds, an investment management company, released its “Baron Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, the fund was up 10.38%% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) 11.97% return. Year to date, the Fund is up 0.36% compared to the index’s (0.48)% return. Small-cap stocks recovered well during the quarter and performed in line with the overall market but have significantly trailed larger-cap stocks this year. 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 Small Cap Fund highlighted stocks such as Utz Brands, Inc. (NYSE:UTZ). Utz Brands, Inc. (NYSE:UTZ) is a U.S.-based snack foods manufacturer. The one-month return of Utz Brands, Inc. (NYSE:UTZ) was 8.20%, and its shares lost 22.65% of their value over the last 52 weeks. On August 8, 2025, Utz Brands, Inc. (NYSE:UTZ) stock closed at $12.77 per share, with a market capitalization of $1.101 billion.

Baron Small Cap Fund stated the following regarding Utz Brands, Inc. (NYSE:UTZ) in its second quarter 2025 investor letter:

"We sold our position in Utz Brands, Inc. (NYSE:UTZ). Sales and earnings are growing slower than we had originally expected, with a more intense promotional and competitive environment along with weaker consumer spending. We don’t see a reversal of those trends soon, so on to better ideas."

Utz Brands, Inc. (NYSE:UTZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Utz Brands, Inc. (NYSE:UTZ) at the end of the first quarter, which was 15 in the previous quarter. While we acknowledge the potential of Utz Brands, Inc. (NYSE:UTZ) 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 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.