Baron Small Cap Fund (BSCFX)

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Fund Description

Baron Small Cap Fund invests primarily in small growth companies.

    

    

Facts & Characteristics as of June 30, 2016

Inception Date September 30, 1997
Net Assets (All share classes combined) $3.62 billion
# of Equity Securities / % of Net Assets 75/96.0%
Turnover (3 Year Average) 14.11%
Median Market Cap $2.31 billion
Weighted Average Market Cap $5.56 billion
CUSIP 068278308
Expense Ratio (as of FYE 09/15)* 1.30%
EPS Growth (3-5 year forecast) 16.9%
Price/Earnings Ratio (trailing 12-month) 29.0
Price/Book Ratio 3.2
Price/Sales Ratio 2.1

Top Ten Holdings as of August 31, 2016

Holding Sector Percentage*
TransDigm Group, Inc. (TDG), through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the United States.
Industrials 5.2%
Gartner, Inc. (IT) is the leading independent provider of research and analysis on the information technology industry.
Information Technology 4.1%
IDEXX Laboratories, Inc. (IDXX) is the leading provider of diagnostics to the veterinary industry.
Health Care 4.0%
Bright Horizons Family Solutions, Inc. (BFAM) is the leading provider of high quality corporate sponsored childcare in the U.S. and U.K., as well as other countries. It provides child care and early education services under multi-year contracts in its own or sponsor-owned centers.
Consumer Discretionary 3.9%
The Ultimate Software Group, Inc. (ULTI) is a leading provider of cloud-based payroll and human resources software.
Information Technology 3.7%
Waste Connections, Inc. (WCN) is an integrated solid-waste services company that provides solid-waste collection, transfer, disposal, and recycling services in mostly secondary markets in western and southern areas of the United States as well as Canada (via acquisition).  
Industrials 3.6%
Acuity Brands, Inc. (AYI) is North America’s leading provider of lighting solutions.
Industrials 3.5%
SBA Communications Corp. (SBAC) is the third largest independent owner of wireless towers in the U.S. and has a growing presence in Canada, Central America, and Brazil. SBA owns and operates over 25,000 towers in total.
Telecommunication Services 2.8%
Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global P&C insurance industry.
Information Technology 2.7%
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 2.5%
Total 36.0%
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Portfolio Holdings as of June 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
TransDigm Group, Inc. Industrials $13.970 4.9%
Gartner, Inc. Information Technology $8.037 4.4%
Waste Connections, Inc. Industrials $12.634 4.3%
PRINCIPAL CASH Cash & Cash Equivalents - 4.0%
The Ultimate Software Group, Inc. Information Technology $6.072 3.8%
Bright Horizons Family Solutions, Inc. Consumer Discretionary $3.959 3.8%
Acuity Brands, Inc. Industrials $10.882 3.4%
IDEXX Laboratories, Inc. Health Care $8.314 3.3%
SBA Communications Corp. Telecommunication Services $13.549 2.7%
Guidewire Software, Inc. Information Technology $4.479 2.7%
Gaming and Leisure Properties, Inc. Financials $6.967 2.6%
Press Ganey Holdings Inc Health Care $2.080 2.5%
On Assignment, Inc. Industrials $1.972 2.3%
FleetCor Technologies, Inc. Information Technology $13.247 2.0%
DexCom, Inc. Health Care $6.619 1.9%
Nord Anglia Education Inc. Consumer Discretionary $2.201 1.8%
ICON plc Health Care $3.848 1.6%
Cognex Corp. Information Technology $3.666 1.6%
Mettler-Toledo International, Inc. Health Care $9.765 1.5%
WEX Inc. Information Technology $3.431 1.5%
Electronics For Imaging Information Technology $2.027 1.5%
INC Research Holdings, Inc. Health Care $2.068 1.4%
Aspen Technology, Inc. Information Technology $3.294 1.3%
BJ's Restaurants, Inc. Consumer Discretionary $1.057 1.3%
The Cheesecake Factory, Inc. Consumer Discretionary $2.335 1.3%
Berry Plastics Group, Inc. Materials $4.697 1.3%
Summit Materials, Inc. Materials $2.047 1.3%
Sarana Menara Nusantara Tbk PT Telecommunication Services $3.282 1.2%
Cantel Medical Corp. Health Care $2.866 1.2%
The Madison Square Garden Co. Consumer Discretionary $4.221 1.2%
ACI Worldwide, Inc. Information Technology $2.275 1.1%
HealthEquity, Inc. Health Care $1.765 1.1%
PRA Health Sciences, Inc. Health Care $2.529 1.1%
RBC Bearings Incorporated Industrials $1.707 1.1%
Nordson Corp. Industrials $4.770 1.0%
Valero Energy Partners LP Energy $3.105 1.0%
Diplomat Pharmacy, Inc. Health Care $2.309 1.0%
Liberty SiriusXM Group - Cl C Consumer Discretionary $10.404 1.0%
Acxiom Corp. Information Technology $1.711 0.9%
Penn National Gaming, Inc. Consumer Discretionary $1.138 0.9%
The Chefs' Warehouse, Inc. Consumer Staples $0.423 0.9%
Mattress Firm Holding Corp. Consumer Discretionary $1.249 0.9%
The Spectranetics Corporation Health Care $0.801 0.9%
Party City Holdco Inc. Consumer Discretionary $1.660 0.9%
Houghton Mifflin Harcourt Company Consumer Discretionary $1.925 0.9%
Moelis & Company Financials $1.924 0.8%
Red Rock Resorts, Inc. Class A Consumer Discretionary $2.547 0.8%
CBRE Group, Inc. Financials $8.882 0.7%
Healthcare Services Group, Inc. Industrials $2.994 0.7%
Financial Engines, Inc. Financials $1.629 0.7%
FEI Company Information Technology $4.373 0.7%
SiteOne Landscape Supply, Inc. Industrials $1.344 0.7%
Chesapeake Lodging Trust Financials $1.397 0.6%
Monro Muffler Brake, Inc. Consumer Discretionary $2.050 0.6%
Flotek Industries, Inc. Materials $0.711 0.6%
Manitowoc Foodservice, Inc. Industrials $2.416 0.6%
Bats Global Markets, Inc. Financials $2.476 0.6%
Ferroglobe PLC Materials $1.480 0.5%
PBF Logistics LP Energy $0.858 0.5%
Liberty Broadband-Cl C Consumer Discretionary $10.879 0.5%
Habit Restaurants, Inc. Consumer Discretionary $0.426 0.5%
Wingstop, Inc. Consumer Discretionary $0.780 0.5%
Brookdale Senior Living, Inc. Health Care $2.869 0.4%
SL Green Realty Corp. Financials $11.098 0.4%
DigitalGlobe, Inc. Industrials $1.347 0.4%
Scorpio Tankers Inc. Energy $0.736 0.4%
ExamWorks Group, Inc. Health Care $1.455 0.4%
Abcam plc Health Care $2.077 0.4%
MSG Networks, Inc. Consumer Discretionary $1.149 0.4%
comScore, Inc. Information Technology $1.353 0.3%
Mercury Systems, Inc. Industrials $0.995 0.3%
Dominion Midstream Partners, L.P. Energy $2.186 0.3%
Liberty Broadband-Cl A Consumer Discretionary $10.879 0.3%
Liberty SiriusXM Group - Cl A Consumer Discretionary $10.404 0.3%
Artisan Partners Asset Management Inc. Financials $1.142 0.2%
Westlake Chemical Partners LP Materials $0.541 0.2%
Catalent Inc. Health Care $2.867 0.2%
Liberty Media Group Cl C Consumer Discretionary $1.594 0.2%
Liberty Media Group - Cl A Consumer Discretionary $1.594 0.0%
Total 100.0%
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Sector Breakdown as of August 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
1.1%
Consumer Discretionary
  • Education Services 6.4%
  • Restaurants 3.8%
  • Cable & Satellite 2.6%
  • Casinos & Gaming 1.6%
  • Movies & Entertainment 1.6%
  • Specialty Stores 1.1%
  • Homefurnishing Retail 0.9%
  • Automotive Retail 0.5%
18.5%
Consumer Staples
  • Food Distributors 0.6%
0.6%
Energy
  • Oil & Gas Storage & Transportation 2.1%
2.1%
Financials
  • Specialized REITs 2.5%
  • Asset Management & Custody Banks 0.9%
  • Investment Banking & Brokerage 0.9%
  • Real Estate Services 0.8%
  • Specialized Finance 0.7%
  • Office REITs 0.5%
6.3%
Health Care
  • Health Care Equipment 7.2%
  • Life Sciences Tools & Services 6.8%
  • Health Care Technology 2.6%
  • Health Care Supplies 1.2%
  • Managed Health Care 1.1%
  • Health Care Services 0.9%
  • Health Care Facilities 0.5%
  • Biotechnology 0.4%
20.6%
Industrials
  • Aerospace & Defense 6.1%
  • Environmental & Facilities Services 3.6%
  • Electrical Components & Equipment 3.5%
  • Industrial Machinery 3.0%
  • Human Resource & Employment Services 2.3%
  • Trading Companies & Distributors 1.7%
  • Diversified Support Services 0.7%
20.9%
Information Technology
  • Application Software 8.8%
  • IT Consulting & Other Services 5.1%
  • Data Processing and Outsourced Services 3.6%
  • Electronic Equipment & Instruments 2.5%
  • Technology Hardware, Storage & Peripherals 1.6%
  • Internet Software & Services 0.4%
22.0%
Materials
  • Construction Materials 1.2%
  • Metal & Glass Containers 1.2%
  • Specialty Chemicals 0.8%
  • Diversified Metals & Mining 0.5%
  • Commodity Chemicals 0.2%
4.0%
Telecommunication Services
  • Integrated Telecommunication Services 2.8%
  • Wireless Telecommunication Services 1.1%
3.9%
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Top Contributors & Detractors as of June 30, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Aerospace & Defense 5.32% 1.03%
Health Care Equipment 6.21% 0.75%
Application Software 8.40% 0.68%
Health Care Technology 2.14% 0.61%
Electrical Components & Equipment 3.88% 0.55%
Top Detractors Average Weight Contribution
Food Distributors 1.03% -0.30%
Homefurnishing Retail 0.98% -0.23%
Asset Management & Custody Banks 1.15% -0.22%
Investment Banking & Brokerage 0.94% -0.19%
Casinos & Gaming 1.69% -0.13%
By Holdings
Top Contributors Average Weight Contribution
TransDigm Group, Inc. 4.71% 0.88%
Press Ganey Holdings, Inc. 2.14% 0.61%
Acuity Brands, Inc. 3.88% 0.55%
IDEXX Laboratories, Inc. 3.12% 0.55%
Waste Connections, Inc. 4.10% 0.46%
Top Detractors Average Weight Contribution
Houghton Mifflin Harcourt Company 1.02% -0.25%
The Chefs' Warehouse, Inc. 0.96% -0.25%
Mattress Firm Holding Corp. 0.98% -0.23%
Financial Engines, Inc. 0.96% -0.21%
Penn National Gaming, Inc. 1.24% -0.21%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Environmental & Facilities Services 3.54% 1.37%
Electrical Components & Equipment 3.68% 1.19%
Health Care Equipment 5.54% 1.05%
Application Software 7.07% 0.78%
IT Consulting & Other Services^ 4.87% 0.68%
Top Detractors Average Weight Contribution
Oil & Gas Storage & Transportation 3.54% -1.70%
Food Distributors 1.80% -1.06%
Health Care Facilities 0.90% -0.97%
Asset Management & Custody Banks 1.71% -0.95%
Specialty Chemicals 0.96% -0.84%
By Holdings
Top Contributors Average Weight Contribution
Waste Connections, Inc. 3.17% 1.60%
Acuity Brands, Inc. 3.67% 1.20%
IDEXX Laboratories, Inc. 2.45% 0.99%
The Ultimate Software Group, Inc. 3.08% 0.73%
Press Ganey Holdings, Inc. 1.62% 0.64%
Top Detractors Average Weight Contribution
Brookdale Senior Living, Inc. 0.90% -0.97%
United Natural Foods, Inc. 0.96% -0.90%
Mattress Firm Holding Corp. 1.34% -0.81%
Ferroglobe PLC 0.94% -0.77%
Platform Specialty Products Corp. 0.35% -0.74%
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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%.

Please Note: Baron Small Cap Fund sold out of Equinix, inc. as of April 28, 2016. We began to purchase SiteOne Landscape Supply, Inc. into the portfolio as of May 12, 2016.

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 Fund’s Industrial holdings have, on average, low degree of commodity exposure. Within the Fund’s Industrials exposure, 84.3% of the weight has low to no degree, 6% has medium degree and 9.7% has high degree of commodity exposure. The Fund’s Industrials weight as of 6/30/2015 was 17.6%.
 
^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.