Vail Resorts (MTN) Fell Due to a Lack of Growth in Season Pass Sales

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund delivered strong results in the third quarter, appreciating 4.83% (Institutional Shares); however, the performance underperformed the Russell 2500 Growth Index’s (the Benchmark) 10.73% gain. The fund's underperformance stemmed from concerns over a slowdown in economic growth affecting the fund’s more economically sensitive Consumer Discretionary stocks. Furthermore, the rise in competitive pressures has adversely affected the valuations of a few of its holdings. 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 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 -8.24%, and its shares lost 21.15% of their value over the last 52 weeks. On November 4, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $141.91 per share, with a market capitalization of $5.102 billion.

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

"Shares of global ski resort company Vail Resorts, Inc. (NYSE:MTN) were down 4.7% for the quarter, detracting 18 bps. Vail’s stock was hurt by investor concerns about slowing visitation levels, driven by a lack of growth in season pass sales. In response, the company is refining its marketing strategy and investing in new media channels, including social media and influencer partnerships, to attract new skiers and accelerate pass sales. Vail also plans to narrow the pricing gap between lift tickets and season passes to encourage more non-pass holders to join its ecosystem, which should drive stronger pass growth next year. Consumer sentiment toward Vail’s pass products is improving, and management continues to enhance the value of the portfolio. The company maintains strong margins and cash flow, which support both share repurchases and a 6% dividend yield. We believe the stock’s significant discount to its historical valuation should narrow as growth reaccelerates in the coming years."

Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the second quarter, compared to 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 a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 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.