Baron Discovery Fund (BDFIX)

Invest In Baron Funds Today

Fund Description

Baron Discovery Fund invests primarily in small growth companies.
 

Fund Resources

Latest Fact Sheets

Standard Fact Sheet

3Q16 Quarterly Letter

Facts & Characteristics as of September 30, 2016

Inception Date September 30, 2013
Net Assets (All share classes combined) $43.43 million
# of Equity Securities / % of Net Assets 62/98.5%
Turnover (3 Year Average) 104.99%
Median Market Cap $1.25 billion
Weighted Average Market Cap $1.60 billion
CUSIP 068278852
Gross Expense Ratio (as of 09/15) 1.25%
Less: Reimbursement of Expenses by Adviser (as of 09/15) (0.15)%
Net Expense Ratio (as of 09/15) 1.10%
EPS Growth (3-5 year forecast) 18.8%
Price/Earnings Ratio (trailing 12-month) 37.0
Price/Book Ratio 3.2
Price/Sales Ratio 2.8

Top Ten Holdings as of October 31, 2016

Holding Sector Percentage*
Mercury Computer Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software.
Industrials 4.8%
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 4.1%
MACOM 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 3.9%
Education Realty Trust, Inc. (EDR) is the second largest U.S. student housing operator, with a $2 billion nationwide portfolio.
Real Estate 3.5%
JUST EAT plc (je.ln) is the leading online restaurant delivery aggregator in the U.K., Denmark, Ireland, France, Spain, Switzerland, Norway, Mexico, Italy, Brazil and Canada. The company generates a 10-13% commission on gross food sales ordered via its websites and mobile apps.
Information Technology 2.9%
Amber Road, Inc. (AMBR) is a software-as-a-service company that streamlines the import/export processes of goods. The software is powered by a proprietary database of continuously updated information regarding shipping schedules, trade agreements, and tariffs from around the world.
Information Technology 2.8%
Dominion Midstream Partners, L.P.
Energy 2.5%
Kinsale Capital Group, Inc. (KNSL) is a specialty insurance company.  Kinsale focuses exclusively on the excess and surplus lines (E&S) market, which includes risks that are unique or hard to place in the standard insurance market.
Financials 2.5%
Wingstop Inc. (WING) is a fast-growing franchisor of Wingstop fast-casual restaurants, with about 894 franchised locations and 20 company stores.
Consumer Discretionary 2.2%
ESCO Technologies, Inc. (ESE) operates in three segments: filtration/fluid control 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 2.1%
Total 31.3%
Back to Top

Portfolio Holdings as of September 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
Mercury Systems, Inc. Industrials $0.992 4.2%
MACOM Technology Solutions Holdings, Inc. Information Technology $2.272 4.2%
Qualys, Inc. Information Technology $1.351 4.2%
Education Realty Trust, Inc. Real Estate $3.151 3.0%
Amber Road, Inc. Information Technology $0.255 2.8%
JUST EAT plc Information Technology $4.704 2.7%
Gaming and Leisure Properties, Inc. Real Estate $6.861 2.4%
Wingstop Inc. Consumer Discretionary $0.842 2.4%
Kinsale Capital Group, Inc. Financials $0.461 2.3%
ESCO Technologies, Inc. Industrials $1.194 2.2%
The KEYW Holding Corporation Industrials $0.452 2.2%
Flotek Industries, Inc. Materials $0.823 2.2%
Inogen, Inc. Health Care $1.204 2.2%
Varonis Systems, Inc. Information Technology $0.794 2.2%
Sientra, Inc. Health Care $0.163 2.2%
Coherent, Inc. Information Technology $2.689 2.0%
Liberty Media Group - Cl A Consumer Discretionary $2.371 2.0%
Myriad Genetics, Inc. Health Care $1.423 1.9%
Novadaq Technologies Inc. Health Care $0.665 1.9%
Foundation Medicine, Inc. Health Care $0.816 1.9%
Glaukos Corporation Health Care $1.246 1.9%
Medpace Holdings, Inc. Health Care $1.184 1.9%
Envestnet, Inc. Information Technology $1.561 1.8%
Acxiom Corporation Information Technology $2.063 1.7%
TherapeuticsMD, Inc. Health Care $1.338 1.7%
Nord Anglia Education Inc. Consumer Discretionary $2.267 1.7%
Flexion Therapeutics Inc Health Care $0.538 1.7%
The Spectranetics Corporation Health Care $1.078 1.6%
Nevro Corp. Health Care $2.975 1.6%
Pinnacle Entertainment, Inc. Consumer Discretionary $0.705 1.6%
PRINCIPAL CASH Cash & Cash Equivalents - 1.5%
Cerus Corporation Health Care $0.638 1.5%
SiteOne Landscape Supply, Inc. Industrials $1.421 1.5%
The Trade Desk Information Technology $1.117 1.5%
DigitalGlobe, Inc. Industrials $1.723 1.4%
Domino's Pizza Group plc Consumer Discretionary $2.391 1.4%
Easterly Government Properties, Inc. Real Estate $0.671 1.4%
Impinj, Inc. Information Technology $0.703 1.4%
Sonic Corp. Consumer Discretionary $1.245 1.3%
Kennedy-Wilson Holdings, Inc. Real Estate $2.537 1.2%
Benefitfocus, Inc. Information Technology $1.184 1.2%
Quotient Technology Inc. Information Technology $1.117 1.2%
Red Rock Resorts, Inc. Class A Consumer Discretionary $2.734 1.2%
Sage Therapeutics, Inc. Health Care $1.680 1.1%
Mellanox Technologies Ltd. Information Technology $2.081 1.0%
American Assets Trust, Inc. Real Estate $1.970 1.0%
Manchester United plc Consumer Discretionary $2.769 1.0%
Pacira Pharmaceuticals, Inc. Health Care $1.276 0.9%
Neos Therapeutics, Inc. Health Care $0.106 0.9%
HealthEquity, Inc. Health Care $2.220 0.8%
Kornit Digital Ltd. Industrials $0.285 0.8%
Barfresh Food Group, Inc. - Physical Consumer Staples $0.060 0.8%
Rexford Industrial Realty, Inc. Real Estate $1.511 0.7%
QAD Inc. - Cl B Information Technology $0.415 0.7%
Party City Holdco Inc. Consumer Discretionary $2.045 0.6%
TESARO, Inc. Health Care $5.149 0.6%
Westlake Chemical Partners LP Materials $0.618 0.5%
Adamas Pharmaceuticals, Inc. Health Care $0.360 0.5%
Noble Midstream Partners LP Energy $0.887 0.5%
Cepheid Health Care $3.858 0.4%
Zoe's Kitchen, Inc. Consumer Discretionary $0.432 0.4%
RBC Bearings Incorporated Industrials $1.817 0.4%
comScore, Inc. Information Technology $1.738 0.3%
Barfresh Food Group, Inc.-Series F Warrants Consumer Staples $0.060 0.1%
Total 100.0%
Back to Top

Sector Breakdown as of October 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
2.8%
Consumer Discretionary
  • Restaurants 4.3%
  • Movies & Entertainment 2.8%
  • Casinos & Gaming 2.6%
  • Education Services 1.7%
  • Specialty Stores 0.6%
11.9%
Consumer Staples
  • Packaged Foods & Meats 1.2%
1.2%
Energy
  • Oil & Gas Storage & Transportation 2.6%
2.6%
Financials
  • Property & Casualty Insurance 2.5%
2.5%
Health Care
  • Biotechnology 7.5%
  • Health Care Equipment 7.2%
  • Health Care Supplies 4.7%
  • Pharmaceuticals 3.1%
  • Life Sciences Tools & Services 1.8%
  • Managed Health Care 0.7%
25.0%
Industrials
  • Aerospace & Defense 8.4%
  • Industrial Machinery 3.5%
  • Trading Companies & Distributors 1.4%
13.4%
Information Technology
  • Internet Software & Services 10.8%
  • Semiconductors 6.8%
  • Systems Software 6.2%
  • Application Software 2.5%
  • IT Consulting & Other Services 1.5%
  • Electronic Equipment & Instruments 1.0%
28.9%
Materials
  • Specialty Chemicals 1.8%
  • Commodity Chemicals 0.4%
2.2%
Real Estate
  • Residential REITs 3.5%
  • Specialized REITs 2.1%
  • Office REITs 1.6%
  • Industrial REITs 1.3%
  • Real Estate Operating Companies 1.1%
9.5%
Back to Top

Top Contributors & Detractors as of September 30, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Semiconductors 6.68% 2.76%
Internet Software & Services 11.19% 2.24%
Biotechnology 6.35% 1.87%
Health Care Equipment 7.02% 1.78%
Systems Software 5.52% 1.41%
Top Detractors Average Weight Contribution
Pharmaceuticals 3.48% -0.54%
Health Care Services 0.10% -0.20%
Residential REITs 3.65% -0.16%
Trading Companies & Distributors 0.64% -0.05%
Office REITs 1.43% -0.03%
By Holdings
Top Contributors Average Weight Contribution
Impinj, Inc. 1.26% 1.65%
MACOM Technology Solutions Holdings, Inc. 4.55% 1.20%
Qualys, Inc. 3.92% 1.03%
Amber Road, Inc. 3.29% 0.81%
Wingstop Inc. 3.40% 0.81%
Top Detractors Average Weight Contribution
TherapeuticsMD, Inc. 1.39% -0.34%
Neos Therapeutics, Inc. 0.77% -0.29%
American Renal Associates Holdings, Inc. 0.10% -0.20%
Education Realty Trust, Inc. 3.65% -0.16%
The Habit Restaurants, Inc. 0.95% -0.12%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Semiconductors 5.76% 3.50%
Internet Software & Services 9.77% 3.37%
Aerospace & Defense 5.16% 2.83%
Health Care Equipment 4.79% 2.50%
Casinos & Gaming 4.49% 2.16%
Top Detractors Average Weight Contribution
Pharmaceuticals 3.54% -2.30%
Leisure Facilities 0.52% -1.25%
Thrifts & Mortgage Finance 0.61% -0.95%
Specialty Chemicals 1.52% -0.73%
Apparel, Accessories & Luxury Goods 0.15% -0.72%
By Holdings
Top Contributors Average Weight Contribution
Mercury Systems, Inc. 4.68% 2.55%
Amber Road, Inc. 1.71% 2.10%
Wingstop Inc. 3.74% 1.80%
The KEYW Holding Corporation 1.62% 1.79%
Impinj, Inc. 0.32% 1.65%
Top Detractors Average Weight Contribution
ClubCorp Holdings, Inc. 0.52% -1.25%
The Habit Restaurants, Inc. 1.82% -0.98%
Essent Group Ltd. 0.61% -0.95%
Fiesta Restaurant Group, Inc. 0.83% -0.91%
Pacira Pharmaceuticals, Inc. 1.69% -0.79%
Back to Top

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.