Review and Outlook

as of 12/31/21

The Review and Outlook for period ending December 31, 2021, is not yet available.

Top Contributors/Detractors to Performance

as of 12/31/21


  • Shares of Watches of Switzerland Group Limited, a leading retailer of luxury watches in the U.S. and U.K., increased due to strong execution in its U.S. store rollout and underlying demand strength for leading luxury watch brands. We believe Watches of Switzerland will benefit from its concentration in share-taking brands such as Rolex and from these brands consolidating distribution in higher-quality retailers like Watches of Switzerland. We reduced our position slightly as its valuation has expanded significantly since we invested in early 2021, but we remain investors. 
  • Endava plc provides consulting and outsourced software development for businesses. Shares increased on quarterly results that beat Street estimates, with 55% revenue growth and 89% EPS growth.  Full-year financial guidance was raised to reflect strong demand across all verticals and geographies. Management expects organic revenue growth to exceed 30% this year and 20% over the long term with upside from accretive acquisitions. We continue to own the stock because we believe Endava will continue gaining share in a large global market for IT services.
  • Compagnie Financiere Richemont SA, a conglomerate of leading global luxury goods brands, contributed during the quarter on continued global strength in luxury goods demand and particular outperformance of Richemont's flagship jewelry brands, Cartier and Van Cleef & Arpels. We remain investors as the thesis that drove our initial investment in the first half of 2021 is playing out, namely that the flagship jewelry brands would take share and underperformance in other segments, such as watches and YOOX Net-a-Porter Group, have bottomed.


  • S4 Capital Plc is a global marketing services business founded by Sir Martin Sorrell, the founder and prior CEO of WPP, the largest ad agency in the world. S4 encompasses creative production firm MediaMonks and data-driven media consultancy MightyHive. Shares of S4 were down on a slightly lowered margin outlook into 2022 as S4 opted to reinvest in its technology and marketing teams to support larger client wins. We believe S4 is doing the right thing by penalizing near-term earnings to support long-term growth. We retain conviction in the long-term outlook.
  • TeamViewer AG, a global software connectivity platform, detracted from performance. The company reported disappointing quarterly earnings and lowered 2021 guidance. Management underestimated many of the headwinds impacting the business coming out of COVID. Due to the string of negative news flow and ongoing uncertainty, we have sold our position.
  • Zai Lab Limited is a Chinese biotechnology company dedicated to bringing Western medicines to greater China and transitioning to a fully integrated company with internal drug development capabilities. Shares declined due to concerns related to investing in China given government actions to curb profitability. We exited our position.

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 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.