Baron Small Cap Fund Sold SBA Communications Corp. (SBAC) on Price Appreciation

Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, the fund was down 9.07% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) -11.12% return. Small-cap stocks continued to underperform larger market caps meaningfully, so the Fund lagged the Russell 3000 Index, which fell 4.72% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as SBA Communications Corporation (NASDAQ:SBAC). SBA Communications Corporation (NASDAQ:SBAC) is an independent owner and operator of wireless communications infrastructure. The one-month return of SBA Communications Corporation (NASDAQ:SBAC) was 2.79%, and its shares gained 22.03% of their value over the last 52 weeks.  On May 23, 2025, SBA Communications Corporation (NASDAQ:SBAC) stock closed at $229.52 per share with a market capitalization of $24.661 billion.

Baron Small Cap Fund stated the following regarding SBA Communications Corporation (NASDAQ:SBAC) in its Q1 2025 investor letter:

"We sold the remnants of our SBA Communications Corporation (NASDAQ:SBAC) holding to fund growthier names after the stock moved higher as interest rates fell. We purchased this position in 2004, and it has been a great holding for the Fund, generating over $350 million in total profits (21.9% annualized return)."

SBA Communications Corporation (NASDAQ:SBAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held SBA Communications Corporation (NASDAQ:SBAC) at the end of the first quarter, which was 44 in the previous quarter. While we acknowledge the potential of SBA Communications Corporation (NASDAQ:SBAC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered SBA Communications Corporation (NASDAQ:SBAC) and shared Andvari Associates' views on the company. In addition, please check out our hedge fund investor letters Q1 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.