Original Coverage & Source Attribution: finance.yahoo.com
Baron Capital, an investment management company, released its third-quarter 2026 investor letter for its “Baron Global Opportunity Fund”. The letter can be downloaded here. The fund gained 3.3% (Institutional Shares) in the quarter, outperforming the 1.6% gain for the MSCI ACWI Index (the Index) and the 0.5% decline for the MSCI ACWI Growth Index, the Fund’s benchmarks. YTD, the Fund is up 24.6% vs. 13.0% and 10.1% gains for the benchmarks, respectively. Strong stock selection and sector allocation drove 172 bps of outperformance in the quarter. Information Technology and Health Care led sector returns, while Developed Markets led regional gains. The Fund remains optimistic about the potential of AI and the Space Economy despite geopolitical uncertainties and rising interest rates. Guided by its long-term strategy, the Fund remains optimistic about its portfolio’s prospects and is patiently seeking new opportunities that trade at attractive discounts to intrinsic value. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its Q3 2026 investor letter, Baron Global Opportunity Fund highlighted Space Exploration Technologies Corp. (NASDAQ:SPCX). Space Exploration Technologies Corp. (NASDAQ:SPCX) is a US-based aerospace company specializing in advanced rockets and spacecraft, operating through Space, Connectivity, and AI segments. On November 11, 2026, Space Exploration Technologies Corp. (NASDAQ:SPCX) closed at $139.75 per share with a market capitalization of $1.9 trillion, capping a three-month return of 1.89%.
Baron Global Opportunity Fund stated the following regarding Space Exploration Technologies Corp. (NASDAQ:SPCX) in its Q3 2026 investor letter:
“Space Exploration Technologies Corp. (NASDAQ:SPCX) develops and launches advanced rockets, satellites, and spacecraft, with the long-term goal of making humanity multi-planetary. The stock detracted from performance as shares pulled back 11.7%, despite strong underlying fundamentals. We remain long-term shareholders and believe the company is in the early stages of a multi-decade growth opportunity. SpaceX’s first public-company results reinforced our conviction, with revenue nearly doubling year-over-year and losses narrowing sharply on high incremental margins. Growth was driven by rapidly scaling, multibillion-dollar compute-hosting deals with AI leaders, including Anthropic and Google, alongside Starlink momentum. Management guided to a robust $100 billion annualized revenue run rate by year-end 2026 and forecasted up to five times more computing capacity exiting 2027, well above Street expectations. SpaceX also closed its acquisition of Cursor, a premier enterprise AI-powered coding platform, accelerated product development with Grok Bot and more advanced Grok models, and progressed Starship toward full reusability.”
