Baron Small Cap Fund (BSFIX)

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Fund Description

Baron Small Cap Fund invests primarily in small growth companies.

    

    

Facts & Characteristics as of September 30, 2016

Inception Date September 30, 1997
Net Assets (All share classes combined) $3.51 billion
# of Equity Securities / % of Net Assets 74/99.1%
Turnover (3 Year Average) 13.77%
Median Market Cap $2.33 billion
Weighted Average Market Cap $6.04 billion
CUSIP 068278803
Expense Ratio (as of FYE 09/15)* 1.04%
EPS Growth (3-5 year forecast) 16.1%
Price/Earnings Ratio (trailing 12-month) 29.0
Price/Book Ratio 3.3
Price/Sales Ratio 2.2

Top Ten Holdings as of October 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 5.5%
Gartner, Inc. (IT) is the leading independent provider of research and analysis on the information technology industry.
Information Technology 4.3%
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 4.2%
The Ultimate Software Group, Inc. (ULTI) is a leading provider of cloud-based payroll and human resources software.
Information Technology 4.1%
IDEXX Laboratories, Inc. (IDXX) is the leading provider of diagnostics to the veterinary industry.
Health Care 4.0%
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%
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 3.1%
Acuity Brands, Inc. (AYI) is North America’s leading provider of lighting solutions.
Industrials 3.0%
Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global P&C insurance industry.
Information Technology 2.8%
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 2.7%
Total 37.3%
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Portfolio Holdings as of September 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
TransDigm Group, Inc. Industrials $15.400 5.6%
Gartner, Inc. Information Technology $7.308 4.2%
IDEXX Laboratories, Inc. Health Care $10.094 4.0%
Bright Horizons Family Solutions, Inc. Consumer Discretionary $3.938 4.0%
The Ultimate Software Group, Inc. Information Technology $5.915 3.8%
Acuity Brands, Inc. Industrials $11.613 3.4%
Waste Connections, Inc. Industrials $13.103 3.4%
SBA Communications Corp. Telecommunication Services $13.977 2.9%
Guidewire Software, Inc. Information Technology $4.383 2.7%
Gaming and Leisure Properties, Inc. Real Estate $6.861 2.6%
FleetCor Technologies, Inc. Information Technology $16.080 2.5%
On Assignment, Inc. Industrials $1.936 2.3%
DexCom, Inc. Health Care $7.353 2.0%
Cognex Corp. Information Technology $4.499 2.0%
ICON plc Health Care $4.252 1.9%
Nord Anglia Education Inc. Consumer Discretionary $2.267 1.9%
Mettler-Toledo International, Inc. Health Care $11.121 1.8%
INC Research Holdings, Inc. Health Care $2.380 1.7%
Electronics For Imaging, Inc. Information Technology $2.286 1.7%
Aspen Technology, Inc. Information Technology $3.731 1.6%
PRA Health Sciences, Inc. Health Care $3.443 1.6%
The Cheesecake Factory, Inc. Consumer Discretionary $2.407 1.4%
WEX Inc. Information Technology $4.618 1.4%
Cantel Medical Corp. Health Care $3.253 1.4%
Press Ganey Holdings, Inc Health Care $2.242 1.4%
Nordson Corp. Industrials $5.698 1.3%
HealthEquity, Inc. Health Care $2.220 1.3%
Berry Plastics Group, Inc. Materials $5.332 1.2%
RBC Bearings Incorporated Industrials $1.817 1.2%
Summit Materials, Inc. Materials $1.856 1.2%
The Madison Square Garden Company Consumer Discretionary $4.078 1.2%
Acxiom Corporation Information Technology $2.063 1.1%
BJ's Restaurants, Inc. Consumer Discretionary $0.859 1.1%
PT Sarana Menara Nusantara Tbk. Telecommunication Services $3.049 1.1%
ACI Worldwide, Inc. Information Technology $2.271 1.1%
The Spectranetics Corporation Health Care $1.078 1.1%
Party City Holdco Inc. Consumer Discretionary $2.045 1.1%
Liberty SiriusXM Group - Cl C Consumer Discretionary $11.258 1.1%
Valero Energy Partners LP Energy $2.886 1.0%
Moelis & Company Financials $1.463 1.0%
Red Rock Resorts, Inc. Class A Consumer Discretionary $2.734 1.0%
PRINCIPAL CASH Cash & Cash Equivalents - 0.9%
Univar Inc. Industrials $3.015 0.9%
CBRE Group, Inc. Real Estate $9.391 0.8%
Financial Engines, Inc. Financials $1.836 0.8%
Diplomat Pharmacy, Inc. Health Care $1.859 0.8%
SiteOne Landscape Supply, Inc. Industrials $1.421 0.8%
Healthcare Services Group, Inc. Industrials $2.868 0.7%
Penn National Gaming, Inc. Consumer Discretionary $1.132 0.7%
Flotek Industries, Inc. Materials $0.823 0.7%
Bats Global Markets, Inc. Financials $2.904 0.7%
Monro Muffler Brake, Inc. Consumer Discretionary $1.975 0.6%
DigitalGlobe, Inc. Industrials $1.723 0.6%
Liberty Broadband Corporation - Cl C Consumer Discretionary $12.948 0.6%
Wingstop Inc. Consumer Discretionary $0.842 0.6%
Manitowoc Foodservice, Inc. Industrials $2.225 0.6%
Liberty Media Group Cl C Consumer Discretionary $2.371 0.6%
Brookdale Senior Living, Inc. Health Care $3.244 0.5%
SL Green Realty Corp. Real Estate $11.277 0.5%
The Chefs' Warehouse, Inc. Consumer Staples $0.292 0.5%
PBF Logistics LP Energy $0.827 0.5%
Abcam plc Health Care $2.208 0.5%
MSG Networks Inc. Consumer Discretionary $1.395 0.5%
Medpace Holdings, Inc. Health Care $1.184 0.5%
comScore, Inc. Information Technology $1.738 0.4%
Ferroglobe PLC Materials $1.552 0.4%
Mercury Systems, Inc. Industrials $0.992 0.4%
Scorpio Tankers Inc. Energy $0.812 0.4%
Zoe's Kitchen, Inc. Consumer Discretionary $0.432 0.3%
Dominion Midstream Partners, L.P. Energy $1.858 0.3%
Liberty Broadband Corporation - Cl A Consumer Discretionary $12.948 0.3%
Liberty SiriusXM Group - Cl A Consumer Discretionary $11.258 0.3%
Westlake Chemical Partners LP Materials $0.618 0.2%
The Habit Restaurants, Inc. Consumer Discretionary $0.364 0.2%
Houghton Mifflin Harcourt Company Consumer Discretionary $1.640 0.2%
HealthStream, Inc. Health Care $0.876 0.2%
Patheon N.V. Health Care $4.299 0.1%
Flotek Industries, Inc.-144 Restricted Materials $0.823 0.1%
Total 100.0%
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Sector Breakdown as of October 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
1.1%
Consumer Discretionary
  • Education Services 6.2%
  • Restaurants 3.7%
  • Cable & Satellite 3.0%
  • Movies & Entertainment 1.9%
  • Casinos & Gaming 1.6%
  • Automotive Retail 1.3%
  • Specialty Stores 1.1%
18.7%
Consumer Staples
  • Food Distributors 0.5%
0.5%
Energy
  • Oil & Gas Storage & Transportation 2.1%
2.1%
Financials
  • Investment Banking & Brokerage 0.9%
  • Asset Management & Custody Banks 0.8%
  • Financial Exchanges & Data 0.7%
2.5%
Health Care
  • Life Sciences Tools & Services 7.8%
  • Health Care Equipment 7.2%
  • Managed Health Care 1.2%
  • Health Care Supplies 1.0%
  • Health Care Services 0.6%
  • Biotechnology 0.5%
  • Health Care Facilities 0.3%
  • Health Care Technology 0.2%
18.8%
Industrials
  • Aerospace & Defense 6.6%
  • Environmental & Facilities Services 3.6%
  • Industrial Machinery 3.1%
  • Electrical Components & Equipment 3.0%
  • Human Resource & Employment Services 2.3%
  • Trading Companies & Distributors 1.8%
  • Diversified Support Services 0.7%
21.0%
Information Technology
  • Application Software 9.7%
  • IT Consulting & Other Services 5.4%
  • Data Processing and Outsourced Services 4.1%
  • Electronic Equipment & Instruments 2.0%
  • Technology Hardware, Storage & Peripherals 1.6%
  • Internet Software & Services 0.3%
23.2%
Materials
  • Construction Materials 1.3%
  • Metal & Glass Containers 1.3%
  • Specialty Chemicals 0.7%
  • Diversified Metals & Mining 0.5%
  • Commodity Chemicals 0.2%
4.0%
Real Estate
  • Specialized REITs 2.7%
  • Real Estate Services 0.8%
  • Office REITs 0.4%
3.9%
Telecommunication Services
  • Integrated Telecommunication Services 3.1%
  • Wireless Telecommunication Services 1.1%
4.2%
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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
Life Sciences Tools & Services 6.50% 1.15%
Health Care Equipment 6.90% 1.08%
Homefurnishing Retail 0.66% 0.76%
Data Processing and Outsourced Services 3.55% 0.69%
Aerospace & Defense 6.00% 0.61%
Top Detractors Average Weight Contribution
Food Distributors 0.70% -0.27%
Restaurants 3.56% -0.25%
IT Consulting & Other Services 5.22% -0.21%
Health Care Services 1.07% -0.20%
Oil & Gas Storage & Transportation 2.13% -0.12%
By Holdings
Top Contributors Average Weight Contribution
Mattress Firm Holding Corp. 0.66% 0.76%
IDEXX Laboratories, Inc. 3.65% 0.72%
TransDigm Group, Inc. 5.14% 0.48%
FleetCor Technologies, Inc. 2.17% 0.43%
PRA Health Sciences, Inc. 1.29% 0.40%
Top Detractors Average Weight Contribution
Gartner, Inc. 4.22% -0.40%
The Chefs' Warehouse, Inc. 0.70% -0.27%
BJ's Restaurants, Inc. 1.16% -0.24%
Diplomat Pharmacy, Inc. 0.96% -0.20%
Summit Materials, Inc. 1.29% -0.12%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Health Care Equipment 6.06% 1.80%
Environmental & Facilities Services 3.69% 1.78%
Electrical Components & Equipment 3.73% 1.66%
Life Sciences Tools & Services 6.26% 1.55%
Aerospace & Defense 5.29% 1.53%
Top Detractors Average Weight Contribution
Food Distributors 1.42% -0.67%
Specialty Chemicals 0.75% -0.45%
Wireless Telecommunication Services 2.30% -0.43%
Oil & Gas Storage & Transportation 2.86% -0.41%
Health Care Facilities 0.62% -0.33%
By Holdings
Top Contributors Average Weight Contribution
Waste Connections, Inc. 3.58% 1.81%
Acuity Brands, Inc. 3.73% 1.66%
IDEXX Laboratories, Inc. 2.89% 1.53%
TransDigm Group, Inc. 4.58% 1.38%
Cognex Corp. 1.40% 0.76%
Top Detractors Average Weight Contribution
Scorpio Tankers Inc. 0.66% -0.53%
United Natural Foods, Inc. 0.58% -0.52%
The Container Store Group, Inc. 0.10% -0.41%
Houghton Mifflin Harcourt Company 0.87% -0.35%
Brookdale Senior Living, Inc. 0.62% -0.33%
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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.