CrowdStrike Holdings (CRWD) is Reaccelerating from Last Year's Outage

Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the fund gained 5.7% (Institutional Shares) compared to the Russell 1000 Growth Index’s (R1KG) 10.5% gain and the S&P 500 Index’s (SPX) 8.1% return. The fund is up 14.4% YTD compared to 17.2% and 14.8% for the indexes. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Baron Fifth Avenue Growth Fund highlighted stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was -5.58%, and its shares gained 44.06% of their value over the last 52 weeks. On December 01, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $504.13 per share, with a market capitalization of $126.514 billion.

Baron Fifth Avenue Growth Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its third quarter 2025 investor letter:

"Lastly, we added to our position in the leading cybersecurity platform, CrowdStrike Holdings, Inc. (NASDAQ:CRWD). A year post the famous outage that grounded planes and impacted a broad array of the company’s customers, we can conclude that management has done an excellent job in the aftermath of the outage. CrowdStrike is now seeing a reacceleration in net new annualized recurring revenues driven by strong adoption of its new Flacon Flex offering, which enables customers to use multiple modules from the company without having to go back to procurement. Additionally, customer care packages provided in the aftermath of the outage also incentivized customers to use more of the platform, planting seeds for broader adoption over time.

We visited CrowdStrike’s West Coast office in September, to spend some time with management and drill down into the emerging growth areas and ability to consolidate more wallet share. We came away incrementally positive on several of the products, including Next-Gen SIEM (security information and event management), Cloud Security and Identity, as well as their opportunity in Security for AI. A week later we spent three days at Falcon, the company’s annual user conference, speaking with customers and partners, and attending its Investor Day. Key takeaways include: i) customer trust as high as we've seen; ii) CrowdStrike’s platform leverages its market leading end point product and best-in-class threat prevention capability powering its Threat Graph that collects and correlates the data across its large customer base, adding key contextual awareness, and; iii) utilizing this across a large and growing set of products on the back of strong innovation and a rapid customer feedback loop, helps customers plan and spend more with CrowdStrike over time. We continue to view CrowdStrike as one of the long-term winners in cyber and a core long-term durable grower with strong margin and cash flow generation."

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared Sands Capital Technology Innovators Fund's views 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.