While much of the market in 2025 has concentrated on artificial intelligence and major technology companies, billionaire fund manager Ron Baron emphasized the importance of exploring a variety of market caps and sectors for better investment opportunities. During this week's appearance on CNBC's 'ETF Edge,' Baron noted a shift as many investors are gradually moving away from tech stocks in search of value in other sectors, particularly in finance.
Baron highlighted two companies from the financial sector that Baron Capital currently invests in: MSCI and FactSet. He remarked that these companies receive scant attention from individual investors but offer confidence in their future potential, thanks in part to their strong leadership.
Baron was on 'ETF Edge' to discuss his company's launch of new exchange-traded funds. These are Baron Capital's first ETFs after decades of managing mutual funds and other investments, which have earned an estimated $57 billion in profits for their investors over the past four decades. Baron projects another $250 billion in profits over the next decade, focusing on identifying stocks that are currently overlooked by the majority of the market.
'There are so many companies that are interesting right now with everyone focusing on technology,' Baron said.
MSCI, renowned for its stock indexes utilized by asset managers, pension funds, and ETF providers globally, plays a crucial role in financial markets with its developed, emerging, and ESG market benchmarks. Beyond indexes, MSCI also offers analytics and risk management tools integral to institutional investing. Despite its significant contributions, MSCI's shares have been on a downward trend, falling close to 8% over the past year and trading at $563 as of Thursday, indicating it may have been overlooked in the latest bull market.