Baron Discovery Fund Purchased Ategrity Specialty Insurance Company Holdings (ASIC) Backed by Multiple Catalysts

Baron Funds, an investment management company, released its “Baron Discovery Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund was up 14.76% (Institutional Shares), outperforming the 11.97% return for the Russell 2000 Growth Index. The fund was up 7.68% year-to-date, well ahead of the Index’s -0.48% return.  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 Discovery Fund highlighted stocks such as Ategrity Specialty Insurance Company Holdings (NYSE:ASIC). Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) is a US-based insurer that provides excess and surplus lines insurance and reinsurance products to small and medium-sized businesses. The one-month return of Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) was -6.67%. On July 30, 2025, Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) stock closed at $19.72 per share, with a market capitalization of $928.155 million.

Baron Discovery Fund stated the following regarding Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) in its second quarter 2025 investor letter:

"Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) is an insurance company focused on the excess and surplus (E&S) market. E&S insurance is a complementary market to the more heavily regulated “Admitted” market. The E&S market gives insurers more flexibility in policy terms and pricing than the Admitted market, which enables more suitable underwriting of certain risks. Ategrity is 100% focused on the E&S market, similar to existing Fund holding Kinsale Capital Group, Inc.

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Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) 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.

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