They Beat All US Stock Funds Since 2003 | Michael Baron on the AI Winners Investors Miss

Baron Capital bets that proprietary-data software firms discounted as "AI losers" are mispriced, while Tesla and SpaceX's vertical integration compounds into outsized optionality.

• Track record claim: Baron says 92% of its funds rank in the top quartile of their category since inception, over half in the top 1%.
• AI "losers" are mispriced: Shopify, Guidewire, FactSet, MSCI and Gartner have seen valuations cut roughly in half despite high-single-digit to 20%+ growth, which Baron attributes to proprietary data moats AI can't replicate.

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