Baron Discovery Fund (BDFIX)

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Fund Description

Baron Discovery Fund invests primarily in small growth companies.
 

Fund Resources

Latest Fact Sheets

Standard Fact Sheet

4Q15 Quarterly Letter

Facts & Characteristics as of December 31, 2015

Inception Date September 30, 2013
Net Assets (All share classes combined) $39.35 million
# of Equity Securities / % of Net Assets 53/95.9%
Turnover (2 Year Average) 117.08%
Median Market Cap $1.10 billion
Weighted Average Market Cap $1.48 billion
CUSIP 068278852
Gross Expense Ratio (as of 09/14) 1.91%
Less: Reimbursement of Expenses by Adviser (as of 09/14) (0.81)%
Net Expense Ratio (as of 09/14) 1.10%
EPS Growth (3-5 year forecast) 21.2%
Price/Earnings Ratio (trailing 12-month) 30.3
Price/Book Ratio 3.0
Price/Sales Ratio 2.3

Top Ten Holdings as of January 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.
Information Technology 5.5%
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 5.3%
Pinnacle Entertainment, Inc. (PNK) owns, develops, and operates casinos and related hospitality and entertainment facilities in the United States. It recently acquired Ameristar Casinos and is in the process of selling its real estate to Gaming and Leisure Properties and spinning off an operating unit.
Consumer Discretionary 5.3%
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 5.1%
Education Realty Trust, Inc. (EDR) is the second largest U.S. student housing operator and owns a $2 billion national portfolio.
Financials 5.0%
Examworks Group, Inc. (EXAM) provides a network of physician panels that provide medical exam services to health insurance companies. Its independent medical examiners (IMEs) operate in the U.S., the U.K., Australia, and Canada.
Health Care 4.7%
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 4.3%
American Assets Trust, Inc.
Financials 2.6%
Krispy Kreme Doughnuts, Inc.
Consumer Discretionary 2.5%
The Habit Restaurants, Inc.
Consumer Discretionary 2.5%
Total 42.8%
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Portfolio Holdings as of December 31, 2015

Holding Sector Market Cap ($Bn) Percentage*
Qualys, Inc. Information Technology $1.132 4.8%
Mercury Systems, Inc. Information Technology $0.637 4.4%
Press Ganey Holdings Inc Health Care $1.663 4.3%
M/A-COM Technology Solutions Holdings, Inc. Information Technology $2.170 4.2%
PRINCIPAL CASH Cash & Cash Equivalents - 4.1%
Wingstop Inc. Consumer Discretionary $0.652 4.1%
Pinnacle Entertainment, Inc. Consumer Discretionary $1.894 4.0%
Education Realty Trust, Inc. Financials $2.139 3.8%
JUST EAT plc Information Technology $4.916 3.7%
ExamWorks Group, Inc. Health Care $1.116 3.3%
Nord Anglia Education Inc. Consumer Discretionary $2.111 2.8%
Envestnet, Inc. Information Technology $1.253 2.5%
Pacira Pharmaceuticals, Inc. Health Care $2.823 2.3%
Flotek Industries, Inc. Materials $0.614 2.3%
Benefitfocus, Inc. Information Technology $1.061 2.3%
American Assets Trust, Inc. Financials $1.739 2.2%
Krispy Kreme Doughnuts, Inc. Consumer Discretionary $0.950 2.1%
Habit Restaurants, Inc. Consumer Discretionary $0.600 2.0%
Essent Group Ltd. Financials $2.028 1.9%
ClubCorp Holdings, Inc. Consumer Discretionary $1.183 1.9%
Rexford Industrial Realty, Inc. Financials $0.909 1.9%
Cerus Corporation Health Care $0.614 1.8%
ESCO Technologies Inc. Industrials $0.933 1.7%
CaesarStone Sdot-Yam Ltd. Industrials $1.530 1.7%
The Spectranetics Corporation Health Care $0.642 1.7%
Chesapeake Lodging Trust Financials $1.501 1.6%
Party City Holdco Inc. Consumer Discretionary $1.540 1.6%
Barfresh Food Group, Inc. - Physical Consumer Staples $0.070 1.6%
Cepheid Health Care $2.643 1.3%
Valero Energy Partners LP Energy $3.371 1.3%
Glaukos Corporation Health Care $0.793 1.3%
DigitalGlobe, Inc. Industrials $1.096 1.2%
Novadaq Technologies Inc. Health Care $0.716 1.2%
Foundation Medicine, Inc. Health Care $0.726 1.2%
INC Research Holdings, Inc. Health Care $2.749 1.2%
comScore, Inc. Information Technology $1.604 1.1%
Manchester United plc Consumer Discretionary $2.919 1.1%
Fiesta Restaurant Group, Inc. Consumer Discretionary $0.902 1.1%
NN, Inc. Industrials $0.428 1.1%
HealthEquity, Inc. Health Care $1.445 1.0%
TherapeuticsMD, Inc. Health Care $1.844 0.9%
Zoe's Kitchen, Inc. Consumer Discretionary $0.542 0.9%
Sage Therapeutics, Inc. Health Care $1.683 0.9%
Coherent, Inc. Information Technology $1.575 0.8%
Varonis Systems, Inc. Information Technology $0.484 0.8%
The KEYW Holding Corporation Industrials $0.240 0.7%
Quotient Technology Inc. Information Technology $0.610 0.7%
Amber Road, Inc. Information Technology $0.134 0.7%
Esperion Therapeutics, Inc. Health Care $0.501 0.7%
AMN HEALTHCARE SERVICES INC. Health Care $1.481 0.5%
Inogen, Inc. Health Care $0.788 0.5%
Boot Barn Holdings, Inc. Consumer Discretionary $0.324 0.4%
Neos Therapeutics, Inc. Health Care $0.228 0.4%
Barfresh Food Group, Inc.-Series F Warrants Consumer Staples $0.070 0.2%
ConforMIS, Inc. Health Care $0.704 0.2%
Total 100.0%
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Sector Breakdown as of January 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
8.0%
Consumer Discretionary
  • Restaurants 12.9%
  • Casinos & Gaming 6.4%
  • Education Services 1.8%
  • Movies & Entertainment 1.4%
  • Specialty Stores 1.0%
  • Leisure Facilities 0.6%
24.0%
Consumer Staples
  • Packaged Foods & Meats 1.9%
1.9%
Energy
  • Oil & Gas Storage & Transportation 1.1%
1.1%
Financials
  • Residential REITs 5.0%
  • Diversified REITs 2.6%
  • Industrial REITs 1.2%
  • Office REITs 0.1%
8.9%
Health Care
  • Health Care Services 5.3%
  • Health Care Technology 4.3%
  • Health Care Equipment 3.8%
  • Pharmaceuticals 3.8%
  • Biotechnology 3.7%
  • Health Care Supplies 2.6%
  • Life Sciences Tools & Services 0.8%
  • Managed Health Care 0.6%
25.0%
Industrials
  • Industrial Machinery 2.8%
  • Aerospace & Defense 1.6%
  • Building Products 1.3%
5.7%
Information Technology
  • Internet Software & Services 8.3%
  • Semiconductors 7.4%
  • Electronic Manufacturing Services 5.5%
  • Systems Software 2.5%
  • Electronic Equipment & Instruments 1.2%
24.9%
Materials
  • Specialty Chemicals 0.5%
0.5%
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Top Contributors & Detractors as of December 31, 2015

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Semiconductors 2.97% 1.01%
Health Care Supplies 3.05% 0.85%
Internet Software & Services 9.72% 0.71%
Building Products 1.49% 0.49%
Industrial REITs 2.40% 0.44%
Top Detractors Average Weight Contribution
Restaurants 8.54% -0.70%
Apparel, Accessories & Luxury Goods 0.58% -0.59%
Casinos & Gaming 4.38% -0.49%
Aerospace & Defense 3.15% -0.46%
Specialty Chemicals 2.42% -0.44%
By Holdings
Top Contributors Average Weight Contribution
M/A-COM Technology Solutions Holdings, Inc. 2.97% 1.01%
Pacira Pharmaceuticals, Inc. 1.42% 0.89%
JUST EAT plc 3.78% 0.56%
CaesarStone Sdot-Yam Ltd. 1.49% 0.49%
Cerus Corporation 1.33% 0.46%
Top Detractors Average Weight Contribution
Iconix Brand Group, Inc. 0.58% -0.59%
Fiesta Restaurant Group, Inc. 1.26% -0.53%
Intersect ENT, Inc. 0.54% -0.51%
DigitalGlobe, Inc. 2.27% -0.50%
Pinnacle Entertainment, Inc. 4.38% -0.49%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Biotechnology 4.70% 1.65%
Life Sciences Tools & Services 1.88% 0.95%
Semiconductors 1.81% 0.74%
Pharmaceuticals 4.71% 0.72%
Electronic Manufacturing Services 2.14% 0.44%
Top Detractors Average Weight Contribution
Health Care Supplies 5.57% -3.17%
Health Care Services 4.11% -2.76%
Systems Software 6.13% -2.28%
Aerospace & Defense 3.83% -1.97%
Internet Software & Services 9.69% -1.71%
By Holdings
Top Contributors Average Weight Contribution
JUST EAT plc 3.02% 1.06%
Foundation Medicine, Inc. 2.53% 1.00%
INC Research Holdings, Inc. 1.64% 0.98%
Esperion Therapeutics, Inc. 1.30% 0.80%
M/A-COM Technology Solutions Holdings, Inc. 1.78% 0.76%
Top Detractors Average Weight Contribution
The Spectranetics Corporation 2.80% -1.98%
BioScrip, Inc. 1.02% -1.64%
DigitalGlobe, Inc. 2.69% -1.58%
Amber Road, Inc. 2.03% -1.54%
ExamWorks Group, Inc. 2.94% -1.21%
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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.