The information contained on this site is intended for institutional investors only, and is published strictly for informational purposes only without regard to the investment objective, financial situation or specific needs of any particular investor. The information is not intended for use by institutional investors in a jurisdiction where distribution or purchase is not authorized.
An institutional investor is one that falls within one or more of the following categories:
If you do not fall within at least one of the above categories you should not access the information contained in the site.
Baron Capital Management, Inc. makes reasonable efforts to ensure the material on the site is as accurate and timely as possible and that disruptions of service are minimal, Baron Capital Management, Inc. makes no warranty or guarantee concerning the availability of this site or the services or the accuracy of the information on it. In addition, the information contained on the site is in no way intended to constitute investment advice, an offer to sell, or a recommendation of any security or investment product. In fact, the products described herein may not be available to, or suitable for, all investors. You should consider, if appropriate, obtaining independent professional advice before making an investment decision. Please consider the charges, risks, expenses and investment objectives carefully before investing. Nothing on this site is intended to constitute legal or tax advice.
Please keep in mind that the opinions and views expressed through the content and commentaries published on the site are just that - opinions and views - and that they are published on the site for informational purposes only. In addition, views and opinions are based on the information available at the time and may not necessarily be shared by Baron Capital Management, Inc., or its employees, in general. As the investing environment changes, so could this information, and Baron Capital Management, Inc. has no responsibility to update it.
Past performance is not a guarantee of future performance. Investment results and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Investors should be aware of the additional risks associated with investments in non-diversification, undervalued or overlooked companies and investments in specific industries. Additional risks may include those associated with investing in foreign securities, emerging markets, and companies with relatively small market capitalizations.
By selecting “I Agree” below, you confirm that you are an institutional investor or consultant to an institutional investor.
The link you have selected is not available within the Institution user experience. You will be switched to view this website as a Financial Advisor.
When you wish to view strategies again, click an 'Institution' link within the 'View As' menu or 'Strategies' in the footer.
Thank you for your email. We will respond as soon as possible.
as of 06/30/21
U.S. equity markets continued to move higher in the second quarter in conjunction with strong macroeconomic data, supportive fiscal and monetary policy, and excellent corporate earnings results. After ceding leadership to cyclical “recovery” stocks, secular growth stocks were back in favor in the back half of the quarter, especially among large-cap technology stocks. The market rotation during the first half of the year has resulted in a more normalized overall balance among various sectors, styles, and market caps, in our opinion.
The economy continued to grow rapidly as the effects of the pandemic receded, and U.S growth appears likely to stay strong. However, inflation accelerated significantly during the quarter, both in goods and wages. This metric caused consternation about whether policy is too stimulative, whether the Fed needs to change course, and whether interest rates will continue to rise, all of which muted the market’s appreciation.
Baron Discovery Fund increased in the quarter. Holdings within Information Technology (IT), Health Care, and Communication Services contributed the most. Third largest contributor Endava Plc led advances within IT. Appreciation within Health Care was led by CareDx, Inc. Shares of this market leader in transplant diagnostics increased after the company beat earnings estimates and raised full-year 2021 guidance by 6%. Its flagship kidney testing product is growing rapidly, and it is adding new tests for lung and heart transplant testing. Top contributor Future plc led positive performance within Communication Services. Top detractor Array Technologies, Inc. led losses within the Industrials sector. We exited our position. Holdings within Financials detracted slightly as well.
We are closely watching policy decisions by the federal government and the Federal Reserve as well as commodity pricing, which might give us hints about whether the current inflationary pressures we are seeing (wages, basic materials, transportation) will persist. However, we always manage the portfolio on a micro, not a macro basis, and feel that each of our investments stands alone on its merits. New opportunities abound, and many are extremely interesting. Generally, we feel good about our companies’ prospects, about our idea generation, and about the state of the U.S. economy.
as of 06/30/21
Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus and summary prospectuses contain this and other information about the Funds. You may obtain them from the Funds’ distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted.
Risks:All investments are subject to risk and may lose value.
The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed on this page reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time and are subject to change at any time based on market and other conditions and Baron has no obligation to update them
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
The index performance is not fund performance; one cannot invest directly into an index.