Baron Discovery Fund (BDFFX)

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Fund Description

Baron Discovery Fund invests primarily in small growth companies.
 

Fund Resources

Latest Fact Sheets

Standard Fact Sheet

1Q16 Quarterly Letter

Facts & Characteristics as of March 31, 2016

Inception Date September 30, 2013
Net Assets (All share classes combined) $29.10 million
# of Equity Securities / % of Net Assets 53/93.2%
Turnover (2 Year Average) 110.19%
Median Market Cap $1.03 billion
Weighted Average Market Cap $1.43 billion
CUSIP 068278860
Gross Expense Ratio (as of 09/15) 1.57%
Less: Reimbursement of Expenses by Adviser (as of 09/15) (0.22)%
Net Expense Ratio (as of 09/15) 1.35%
EPS Growth (3-5 year forecast) 43.7%
Price/Earnings Ratio (trailing 12-month) 41.6
Price/Book Ratio 3.0
Price/Sales Ratio 2.5

Top Ten Holdings as of April 30, 2016

Holding Sector Percentage*
M/A-COM Technology Solutions Holdings, Inc. (MTSI) is a high performance analog semiconductor company. It sells semiconductors, components, and subsystems to the communications (data transmission and data centers), aerospace/defense (radar, electronic warfare), and industrial (including medical) markets .
Information Technology 5.5%
Mercury Computer Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software.
Information Technology 5.0%
Gaming and Leisure Properties, Inc. (GLPI) holds all of the real property interests related to Penn National Gaming’s gaming operations and the Casino Queen in Illinois. It also has full ownership and operates Penn’s Baton Rouge and Maryland casinos. It should close soon on its Pinnacle acquisition.
Financials 4.6%
Wingstop Inc. (WING) is a fast-growing franchisor of Wingstop chicken wing-centric fast-casual restaurants, with about 826 franchised locations and 19 company stores as of 4Q15.
Consumer Discretionary 4.5%
Education Realty Trust, Inc. (EDR) is the second largest U.S. student housing operator and owns a $2 billion national portfolio.
Financials 4.4%
Press Ganey Holdings, Inc. (PGND) is a leading provider of patient experience and employee engagement measurement, analytics, and strategic advisory solutions for health care organizations.
Health Care 4.0%
Qualys, Inc. (QLYS) provides information technology security risk and compliance management solutions. The company offers cloud-based software products for vulnerability management, policy compliance, web application scanning, malware detection, and associated security products.
Information Technology 3.4%
ESCO Technologies, Inc. (ESE) operates in 3 segments: filtration/fluid control mostly for commercial aerospace applications; RF Shielding and Test measures magnetic, electromagnetic, and acoustic energy; and Utility Solutions, providing high-end, intelligent diagnostic test solutions for electric utilities.
Industrials 2.4%
Envestnet, Inc.
Information Technology 2.4%
Nord Anglia Education Inc. (NORD) is the leading operator of premium K-12 schools with 41 schools, about 35,000 students, and 46,000 seat capacity, in 15 countries in Europe, the U.S., Middle and South East Asia, and China. Its schools teach a British curriculum and target primarily English speaking expats.
Consumer Discretionary 2.1%
Total 38.3%
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Portfolio Holdings as of March 31, 2016

Holding Sector Market Cap ($Bn) Percentage*
PRINCIPAL CASH Cash & Cash Equivalents - 6.8%
M/A-COM Technology Solutions Holdings, Inc. Information Technology $2.325 6.0%
Pinnacle Entertainment, Inc. Consumer Discretionary $2.144 5.9%
ExamWorks Group, Inc. Health Care $1.213 5.0%
Mercury Systems, Inc. Information Technology $0.707 4.9%
Education Realty Trust, Inc. Financials $2.630 4.7%
Wingstop Inc. Consumer Discretionary $0.648 4.2%
Press Ganey Holdings Inc Health Care $1.588 4.0%
Qualys, Inc. Information Technology $0.872 3.5%
ESCO Technologies Inc. Industrials $1.007 2.5%
Inogen, Inc. Health Care $0.894 2.2%
Nord Anglia Education Inc. Consumer Discretionary $2.175 2.2%
Mellanox Technologies Ltd. Information Technology $2.587 2.1%
American Assets Trust, Inc. Financials $1.813 2.1%
Pacira Pharmaceuticals, Inc. Health Care $1.963 2.1%
Envestnet, Inc. Information Technology $1.143 2.1%
Krispy Kreme Doughnuts, Inc. Consumer Discretionary $0.985 2.0%
JUST EAT plc Information Technology $3.661 2.0%
Habit Restaurants, Inc. Consumer Discretionary $0.484 1.7%
The KEYW Holding Corporation Industrials $0.265 1.6%
Barfresh Food Group, Inc. - Physical Consumer Staples $0.066 1.6%
Easterly Government Properties Financials $0.448 1.6%
Coherent, Inc. Information Technology $2.585 1.5%
Benefitfocus, Inc. Information Technology $0.974 1.5%
Cepheid Health Care $2.425 1.4%
Acxiom Corp. Information Technology $1.666 1.3%
Penn National Gaming, Inc. Consumer Discretionary $1.357 1.3%
Foundation Medicine, Inc. Health Care $0.628 1.3%
Cerus Corporation Health Care $0.589 1.3%
Manchester United plc Consumer Discretionary $2.366 1.2%
Novadaq Technologies Inc. Health Care $0.624 1.2%
DigitalGlobe, Inc. Industrials $1.113 1.1%
The Spectranetics Corporation Health Care $0.620 1.1%
TherapeuticsMD, Inc. Health Care $1.255 1.1%
INC Research Holdings, Inc. Health Care $2.224 1.1%
comScore, Inc. Information Technology $1.702 1.0%
Amber Road, Inc. Information Technology $0.142 1.0%
Party City Holdco Inc. Consumer Discretionary $1.794 1.0%
Glaukos Corporation Health Care $0.545 1.0%
Fiesta Restaurant Group, Inc. Consumer Discretionary $0.879 0.9%
Quotient Technology Inc. Information Technology $0.872 0.9%
HealthEquity, Inc. Health Care $1.425 0.9%
Sage Therapeutics, Inc. Health Care $1.027 0.7%
Valero Energy Partners LP Energy $3.094 0.6%
Varonis Systems, Inc. Information Technology $0.477 0.6%
Neos Therapeutics, Inc. Health Care $0.173 0.6%
Zoe's Kitchen, Inc. Consumer Discretionary $0.756 0.5%
Sientra, Inc. Health Care $0.124 0.5%
RBC Bearings Incorporated Industrials $1.768 0.5%
Kornit Digital Ltd. Industrials $0.302 0.5%
Nevro Corp Health Care $1.586 0.5%
Rexford Industrial Realty, Inc. Financials $1.010 0.3%
Barfresh Food Group, Inc.-Series F Warrants Consumer Staples $0.066 0.3%
Tesaro Inc Health Care $1.774 0.3%
Flotek Industries, Inc. Materials $0.402 0.2%
Total 100.0%
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Sector Breakdown as of April 30, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
7.7%
Consumer Discretionary
  • Restaurants 9.0%
  • Casinos & Gaming 4.0%
  • Education Services 2.1%
  • Movies & Entertainment 1.4%
  • Specialty Stores 1.0%
17.5%
Consumer Staples
  • Packaged Foods & Meats 1.6%
1.6%
Energy
  • Oil & Gas Storage & Transportation 0.5%
0.5%
Financials
  • Specialized REITs 4.6%
  • Residential REITs 4.4%
  • Diversified REITs 2.0%
  • Office REITs 1.5%
  • Industrial REITs 0.3%
12.8%
Health Care
  • Health Care Equipment 5.7%
  • Health Care Technology 4.0%
  • Pharmaceuticals 4.0%
  • Health Care Services 3.8%
  • Health Care Supplies 3.5%
  • Biotechnology 3.0%
  • Life Sciences Tools & Services 1.2%
  • Managed Health Care 0.9%
26.1%
Industrials
  • Industrial Machinery 3.4%
  • Aerospace & Defense 3.0%
6.4%
Information Technology
  • Internet Software & Services 8.5%
  • Semiconductors 6.4%
  • Electronic Manufacturing Services 5.0%
  • Systems Software 4.0%
  • IT Consulting & Other Services 1.5%
  • Electronic Equipment & Instruments 1.5%
26.9%
Materials
  • Specialty Chemicals 0.5%
0.5%
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Top Contributors & Detractors as of March 31, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Semiconductors 7.08% 1.31%
Casinos & Gaming 5.91% 0.97%
Electronic Manufacturing Services 5.12% 0.72%
Residential REITs 4.70% 0.61%
Electronic Equipment & Instruments 1.23% 0.51%
Top Detractors Average Weight Contribution
Internet Software & Services 8.67% -1.46%
Pharmaceuticals 3.74% -1.40%
Biotechnology 3.93% -0.95%
Systems Software 4.22% -0.86%
Leisure Facilities 0.47% -0.77%
By Holdings
Top Contributors Average Weight Contribution
Pinnacle Entertainment, Inc. 5.05% 0.75%
Mercury Systems, Inc. 5.12% 0.72%
Mellanox Technologies Ltd. 1.74% 0.66%
M/A-COM Technology Solutions Holdings, Inc. 5.34% 0.65%
Education Realty Trust, Inc. 4.70% 0.61%
Top Detractors Average Weight Contribution
JUST EAT plc 2.48% -1.13%
Pacira Pharmaceuticals, Inc. 2.16% -0.89%
ClubCorp Holdings, Inc. 0.47% -0.77%
Flotek Industries, Inc. 0.54% -0.77%
Qualys, Inc. 3.44% -0.75%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Semiconductors 3.47% 1.94%
Electronic Manufacturing Services 3.20% 1.24%
Residential REITs 1.69% 0.83%
Life Sciences Tools & Services 1.51% 0.53%
Electronic Equipment & Instruments 1.30% 0.43%
Top Detractors Average Weight Contribution
Health Care Supplies 4.53% -3.57%
Internet Software & Services 9.37% -3.45%
Biotechnology 4.08% -3.38%
Systems Software 5.43% -3.09%
Pharmaceuticals 3.75% -1.84%
By Holdings
Top Contributors Average Weight Contribution
M/A-COM Technology Solutions Holdings, Inc. 3.03% 1.29%
Mercury Systems, Inc. 3.20% 1.24%
Inogen, Inc. 1.38% 1.07%
Education Realty Trust, Inc. 1.69% 0.83%
Mellanox Technologies Ltd. 0.43% 0.66%
Top Detractors Average Weight Contribution
The Spectranetics Corporation 2.15% -2.05%
Foundation Medicine, Inc. 1.76% -1.67%
DigitalGlobe, Inc. 2.24% -1.65%
Qualys, Inc. 2.90% -1.29%
Amber Road, Inc. 1.65% -1.26%
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Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

*Top Ten Holdings, Portfolio Holdings, and Sector Breakdown based on net assets. Positions smaller than 0.05% round to 0.0%. Portfolio holdings may change over time. As of 3/12/2014, Baron Discovery Fund no longer owns shares of Mandarin Oriental International.

Industry sector or sub-industry group levels are provided from the Global Industry Classification Standard ("GICS"), developed and exclusively owned by MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"), unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided "as is" with no warranties.

^The Adviser has reclassified/classified certain securities in or out of this Sub-Industry. Such reclassifications/classifications are not supported by S&P or MSCI.

Top Contributors & Detractors Source: FactSet PA.

One year turnover information to the most recent quarter and average market cap (unweighted) is available upon request.