Baron Real Estate Fund (BREFX)

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Fund Description

Baron Real Estate Fund invests in securities of real estate and real estate related companies of all sizes.


Facts & Characteristics as of September 30, 2016

Inception Date December 31, 2009
Net Assets (All share classes combined) $1.10 billion
# of Equity Securities / % of Net Assets 35/95.7%
Turnover (3 Year Average) 39.53%
Median Market Cap $11.36 billion
Weighted Average Market Cap $19.72 billion
CUSIP 06828M702
Expense Ratio (as of FYE 12/15) 1.31%
EPS Growth (3-5 year forecast) 12.8%
Price/Earnings Ratio (trailing 12-month) 27.3
Price/Book Ratio 2.6
Price/Sales Ratio 2.3

Top Ten Holdings as of September 30, 2016

Holding Sector Percentage*
MGM Resorts International (MGM) is a casino hospitality company with properties in Macau, Las Vegas, and regionally across the U.S.  85% of its EBITDA is in the U.S., while 15% is from Macau.  The company owns a 76% stake in MGM Growth Properties, a gaming REIT and a 56% stake in MGM China.
Consumer Discretionary 6.0%
Mohawk Industries, Inc. (MHK) is the largest player in the $18 billion U.S. flooring industry, with 22% share. Flooring categories include carpets, rugs/mats, ceramic, stone, countertops, and laminate/hardwood.
Consumer Discretionary 5.9%
InterXion Holding N.V. (INXN) is a European provider of cloud and carrier-neutral colocation data center services. It has 42 data centers across 13 cities in 11 countries, over 100,000 square meters of equipped space, and 1,500 customers.
Information Technology 5.5%
Gaming and Leisure Properties, Inc. (GLPI) holds all of the real property interests related to the gaming operations of Penn National Gaming and Pinnacle Entertainment, as well as the Casino Queen in Illinois. It also has full ownership of and operates Penn’s Baton Rouge and Maryland casinos.
Real Estate 5.4%
American Tower Corp. (AMT) is the largest independent wireless tower operator worldwide, with 144,000 towers in 13 countries on five continents.
Real Estate 4.7%
Macquarie Infrastructure Corp (MIC) owns a diversified group of infrastructure assets in the U.S.including: IMTT (bulk liquid storage for petroleum & chemicals), Atlantic Aviation (69 airport operators), Hawaii Gas (regulated gas utility), and Contracted Power & Energy (renewable power generation).
Industrials 4.6%
Equinix, Inc. (EQIX) is a network neutral operator of state-of-the-art data centers across North America, Europe, and Asia-Pacific. It provides highly reliable facilities and offers low latency interconnection to and among business partners, networks, and cloud service providers, among others.
Real Estate 3.9%
CBRE Group, Inc. (CBG) is a leading commercial real estate services company with the number one market share in all of its major businesses.
Real Estate 3.8%
MGM Growth Properties (MGP) is a newly formed triple net REIT that currently holds 11 MGM assets in the U.S., including seven in Las Vegas. The triple net REIT vehicle allows MGM to monetize its real estate assets and take advantage of the valuation disparity of the assets held in the operating company.
Real Estate 3.7%
Brookfield Asset Management, Inc. (BAM) invests in property, renewable power, and infrastructure assets worldwide. It has more than $100 billion under management.
Financials 3.3%
Total 46.8%
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Portfolio Holdings as of September 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
MGM Resorts International Consumer Discretionary $14.723 6.0%
Mohawk Industries, Inc. Consumer Discretionary $14.856 5.9%
Interxion Holding N.V. Information Technology $2.541 5.5%
Gaming and Leisure Properties, Inc. Real Estate $6.861 5.4%
American Tower Corp. Real Estate $48.221 4.7%
Macquarie Infrastructure Corporation Industrials $6.786 4.6%
PRINCIPAL CASH Cash & Cash Equivalents - 4.3%
Equinix, Inc. Real Estate $25.605 3.9%
CBRE Group, Inc. Real Estate $9.391 3.8%
MGM Growth Properties LLC Real Estate $5.620 3.7%
Brookfield Asset Management, Inc. Financials $34.696 3.3%
Toll Brothers, Inc. Consumer Discretionary $4.897 3.0%
Hilton Worldwide Holdings, Inc. Consumer Discretionary $22.696 2.9%
Douglas Emmett, Inc. Real Estate $5.532 2.8%
Simon Property Group, Inc. Real Estate $65.049 2.8%
American Campus Communities, Inc. Real Estate $6.637 2.7%
Brookdale Senior Living, Inc. Health Care $3.244 2.7%
Masonite International Corp. Industrials $1.901 2.7%
Home Depot, Inc. Consumer Discretionary $158.994 2.5%
Kennedy-Wilson Holdings, Inc. Real Estate $2.537 2.5%
Alexandria Real Estate Equities, Inc. Real Estate $8.481 2.4%
Vulcan Materials Company Materials $15.134 2.4%
Lowe's Companies, Inc. Consumer Discretionary $63.159 2.1%
Martin Marietta Materials, Inc. Materials $11.362 2.1%
Norwegian Cruise Line Holdings, Ltd. Consumer Discretionary $8.562 2.1%
Jones Lang LaSalle, Inc. Real Estate $5.141 1.8%
Digital Realty Trust, Inc. Real Estate $14.510 1.7%
General Growth Properties, Inc. Real Estate $24.419 1.6%
SBA Communications Corp. Telecommunication Services $13.977 1.4%
Boston Properties, Inc. Real Estate $20.947 1.2%
Royal Caribbean Cruises Ltd. Consumer Discretionary $16.134 1.2%
Vornado Realty Trust Real Estate $19.111 1.1%
PT Sarana Menara Nusantara Tbk. Telecommunication Services $3.049 1.1%
Aena SA Industrials $22.124 1.0%
Armstrong World Industries, Inc. Industrials $2.293 0.6%
Rexford Industrial Realty, Inc. Real Estate $1.511 0.5%
Total 100.0%
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Sector Breakdown as of September 30, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
Consumer Discretionary
  • Hotels, Resorts & Cruise Lines 6.2%
  • Casinos & Gaming 6.0%
  • Home Furnishings 5.9%
  • Home Improvement Retail 4.7%
  • Homebuilding 3.0%
  • Asset Management & Custody Banks 3.3%
Health Care
  • Health Care Facilities 2.7%
  • Industrial Conglomerates ^ 4.6%
  • Building Products 3.4%
  • Airport Services^ 1.0%
Information Technology
  • IT Consulting & Other Services 5.5%
  • Construction Materials 4.4%
Real Estate
  • Specialized REITs^ 18.0%
  • Real Estate Services 5.6%
  • Office REITs^ 5.1%
  • Retail REITs 4.4%
  • Hotel & Resort REITs 3.7%
  • Residential REITs 2.7%
  • Real Estate Operating Companies 2.5%
  • Industrial REITs 0.5%
Telecommunication Services
  • Integrated Telecommunication Services 1.4%
  • Wireless Telecommunication Services 1.1%
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Top Contributors & Detractors as of September 30, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Real Estate Services 7.94% 0.99%
Casinos & Gaming 5.87% 0.82%
Industrial Conglomerates ^ 4.34% 0.59%
Health Care Facilities 2.73% 0.35%
Home Furnishings 6.01% 0.31%
Top Detractors Average Weight Contribution
Specialized REITs^ 17.40% -0.44%
Construction Materials 3.71% -0.30%
Retail REITs 5.31% -0.23%
Building Products 3.64% -0.16%
Home Improvement Retail 4.83% -0.15%
By Holdings
Top Contributors Average Weight Contribution
MGM Resorts International 5.87% 0.82%
Macquarie Infrastructure Corporation 4.38% 0.56%
Kennedy-Wilson Holdings, Inc. 2.59% 0.47%
Jones Lang LaSalle, Inc. 2.31% 0.41%
Brookdale Senior Living, Inc. 2.73% 0.35%
Top Detractors Average Weight Contribution
Digital Realty Trust, Inc. 2.04% -0.24%
Equinix, Inc. 3.46% -0.24%
Lowe’s Companies, Inc. 2.29% -0.19%
Masonite International Corp. 3.07% -0.18%
Martin Marietta Materials, Inc. 2.27% -0.15%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 13.28% 4.31%
Casinos & Gaming 4.67% 1.35%
Airport Services^ 2.29% 0.96%
Hotel & Resort REITs 2.05% 0.82%
Retail REITs 5.39% 0.81%
Top Detractors Average Weight Contribution
Hotels, Resorts & Cruise Lines 13.08% -3.30%
Real Estate Services 10.40% -2.63%
Building Products 4.72% -0.81%
Leisure Facilities 0.50% -0.76%
Wireless Telecommunication Services 1.97% -0.30%
By Holdings
Top Contributors Average Weight Contribution
Equinix, Inc. 3.79% 1.35%
MGM Resorts International 4.67% 1.35%
Macquarie Infrastructure Corporation 2.26% 1.28%
Digital Realty Trust, Inc. 1.81% 0.89%
American Tower Corp. 3.10% 0.84%
Top Detractors Average Weight Contribution
Norwegian Cruise Line Holdings, Ltd. 3.49% -1.68%
Jones Lang LaSalle, Inc. 3.38% -1.53%
CBRE Group, Inc. 4.81% -1.04%
Royal Caribbean Cruises Ltd. 2.25% -0.80%
ClubCorp Holdings, Inc. 0.50% -0.76%
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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. Portfolio holdings may change over time. Positions smaller than 0.05% round to 0.0%. Portfolio holdings are subject to change over time.

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.

Definitions (provided by Baron Capital, Inc.): EPS Growth Rate (3-5 Year): indicates the long-term forecasted EPS growth of the companies in the portfolio, calculated using the weighted average of the available 3-to-5 year forecasted growth rates for each of the stocks in the portfolio provided by Factset Estimates. The EPS Growth rate does not forecast the Fund’s performance. Price/ Earnings Ratio (trailing 12-months): is a valuation ratio of a company’s current share price compared to its actual earnings per share over the last twelve months. Price/Book Ratio: is a ratio used to compare a company’s stock price to its tangible assets, and it is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. Price/Sales Ratio: is a valuation ratio of a stock’s price relative to its past performance. It represents the amount an investor is willing to pay for a dollar generated from a particular company’s operations. Price/Sales is calculated by dividing a stock’s current price by its revenue per share for the last 12 months. Weighted Harmonic Average: is a calculation that reduces the impact of extreme observation on the aggregate calculation by weighting them based on their size in the fund.

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