Baron Partners Fund highlights FactSet (FDS) as undervalued, trading at a 52% discount to its 10-year average multiple, despite its role as critical AI infrastructure.
Baron Partners Fund highlighted FactSet Research Systems Inc. (FDS) in its Q2 2026 investor letter, stating that the market significantly understates FactSet's positioning as AI becomes more deeply embedded in financial workflows. The fund believes FactSet is becoming critical AI infrastructure for the industry. FactSet's shares came under pressure due to perceived AI disruption risk, but the company saw AI drive meaningful client expansions, including a top 10 bank doubling its data subscriptions. Management repurchased $163 million in the most recent quarter.
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