Slower Income Development Impacted Verisk Analytics (VRSK) Efficiency in Q3

Baron Funds, an funding administration firm, launched its “Baron Targeted Development Fund” third-quarter 2025 investor letter. A duplicate of the letter may be downloaded right here. The Fund delivered robust leads to the third quarter, appreciating 4.83% (Institutional Shares); nonetheless, the efficiency underperformed the Russell 2500 Development Index’s (the Benchmark) 10.73% acquire. The fund’s underperformance stemmed from considerations over a slowdown in financial progress affecting the fund’s extra economically delicate Client Discretionary shares. Moreover, the rise in aggressive pressures has adversely affected the valuations of some of its holdings. As well as, please verify the fund’s high 5 holdings to know its finest picks in 2025.

In its third-quarter 2025 investor letter, Baron Targeted Development Fund highlighted shares comparable to Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) provides knowledge analytics and know-how options to the insurance coverage trade. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -9.64%, and its shares misplaced 21.18% of their worth during the last 52 weeks. On November 4, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) inventory closed at $220.00 per share, with a market capitalization of $30.662 billion.

Baron Targeted Development Fund acknowledged the next relating to Verisk Analytics, Inc. (NASDAQ:VRSK) in its third quarter 2025 investor letter:

“Shares of Verisk Analytics, Inc. (NASDAQ:VRSK), a number one knowledge and analytics vendor, declined 19.1% within the quarter and harm efficiency by 51 bps. The decline was attributable to considerations of a deceleration in income progress within the second half of the 12 months attributable to softer insurance coverage market in addition to a big acquisition the corporate made within the quarter to develop its product pipeline and speed up progress within the coming years. Nevertheless, whereas the income progress considerations are legitimate, it’s only a distinction in progress of fifty bps relying on whether or not they’re promoting into a robust or softer insurance coverage market. The corporate continues to generate robust excessive single-digit income progress and stays upbeat on their pipeline of recent merchandise transferring ahead. We imagine that Verisk is properly positioned round AI given they’re a essential asset for insurance coverage firms within the property and casualty insurance coverage ecosystem and the deeply proprietary nature of lots of their knowledge belongings. We nonetheless imagine the corporate is properly positioned for long-term progress, margin growth, and robust returns on investments over the approaching years.”

Verisk Analytics, Inc. (NASDAQ:VRSK) will not be on our listing of 30 Most Well-liked Shares Amongst Hedge Funds. In line with our database, 49 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) on the finish of the second quarter, in comparison with 45 within the earlier quarter. Within the third quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $768 million in income, representing a rise of 5.9% from Q3 2024. Whereas we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) as an funding, we imagine sure AI shares provide higher upside potential and carry much less draw back threat. In the event you’re on the lookout for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.