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The Fund invests in companies of any market capitalization that develop or use innovative technologies related in a significant way to financial services. The Fund invests principally in U.S. securities but may invest up to 35% in non-U.S. securities. Non-diversified.
2Expense ratios are as of the fiscal year ended 12/31/2021
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 Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and 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.
The Fund’s 3-year historical performance was impacted by gains from IPOs and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.
Quarterly Returns
as of 06/30/23
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QTD1
YTD1
1 Year
3 Years
Since Inception
Expense Ratio2
Gross
Net
BFIIX - Baron FinTech Fund - I
5.29%
10.38%
13.86%
2.67%
6.59%
1.20%
0.95%
FactSet Global FinTech Index
5.78%
14.50%
12.82%
-0.53%
-0.41%
S&P 500 Index
8.74%
16.89%
19.59%
14.60%
11.39%
1Not annualized.
2Expense ratios are as of the fiscal year ended 12/31/2021
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 Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and 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.
The Fund’s 3-year historical performance was impacted by gains from IPOs and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.
Performance Characteristics: BFIIX
as of 06/30/23
3 Years
Since Inception
Standard Deviation (%)
23.28
24.84
Sharpe Ratio
0.06
0.21
Alpha (%)
3.52
6.87
Beta
0.94
0.84
R-Squared (%)
83.39
84.83
Tracking Error (%)
9.58
10.63
Information Ratio
0.33
0.66
Upside Capture (%)
113.46
108.40
Downside Capture (%)
102.22
89.17
NAV
$12.49
Daily Change ($)
-$0.06
Daily Change (%)
-$0.06
MTD
-3.55%
QTD
1.30%
YTD
11.82%
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BFIIX - Baron FinTech Fund - I
FactSet Global FinTech Index
S&P 500 Index
QTD1
5.03%
-0.56%
1.57%
YTD1
15.94%
13.86%
18.73%
1 Year
10.53%
4.83%
15.94%
3 Years
0.31%
-5.03%
10.52%
Since Inception
7.71%
-0.54%
11.32%
Expense Ratio2 - Gross
1.20%
Expense Ratio2 - Net
0.95%
*As of 08/31/23
*Annualized as of 08/31/23
1Not annualized.
2Expense ratios are as of the fiscal year ended 12/31/2021
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 Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and 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.
The Fund’s 3-year historical performance was impacted by gains from IPOs and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.
scroll to view all
BFIIX - Baron FinTech Fund - I
FactSet Global FinTech Index
S&P 500 Index
QTD1
5.29%
5.78%
8.74%
YTD1
10.38%
14.50%
16.89%
1 Year
13.86%
12.82%
19.59%
3 Years
2.67%
-0.53%
14.60%
Since Inception
6.59%
-0.41%
11.39%
Expense Ratio2 - Gross
1.20%
Expense Ratio2 - Net
0.95%
*As of 06/30/23
*Annualized as of 08/31/23
1Not annualized.
2Expense ratios are as of the fiscal year ended 12/31/2021
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 Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and 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.
The Fund’s 3-year historical performance was impacted by gains from IPOs and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.
Intuit Inc. (INTU) is the leading provider of accounting and business management software for small businesses and tax preparation software for individuals. Intuit has leading positions in two large markets: individual tax preparation software and small business accounting software. TurboTax is the leader in the DIY individual tax business, but with just 30% share of total U.S. tax returns, the company has a long runway for growth, in our view. The company's QuickBooks software is used by eight million businesses for accounting, payroll, and other business management processes. Management targets double-digit revenue growth, with expanding margins and ample cash flow generation over the long term.
Information Technology
5.2%
Mastercard Incorporated
Mastercard Incorporated (MA) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks. Mastercard benefits from consumer spending growth and the secular shift from cash to electronic payments. Most of its revenue comes from international markets, where consumer spending and the adoption rate of electronic payments are rising quickly. Margins should continue expanding due to operating leverage. The company generates significant free cash flow, which it uses for acquisitions and share repurchases. We believe Mastercard enjoys high barriers to entry given its well-established brand, ubiquitous acceptance network, and extensive banking relationships.
Financials
5.1%
Visa Inc.
Visa Inc. (V) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks. Visa benefits from consumer spending growth and the secular shift from cash to electronic payments. Most of its revenue comes from international markets, where consumer spending and the adoption rate of electronic payments are rising quickly. The company generates significant free cash flow, which is being returned to shareholders through dividends and share repurchases. We believe Visa enjoys high barriers to entry given its well-established brand, ubiquitous merchant acceptance network, and extensive banking relationships.
Financials
5.1%
S&P Global Inc.
S&P Global Inc. (SPGI) provides credit ratings, indices, data, and analytics to the financial, transportation, and commodities markets. S&P Global benefits from the secular growth of rated bond issuance, the ongoing shift from active to passive investing, and growing demand for data and analytics. The company operates in oligopoly markets, where it enjoys formidable competitive advantages. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends. We believe the 2022 merger with IHS Markit will create significant shareholder value through cost savings and cross-selling services to the combined customer base.
Financials
4.7%
Fair Isaac Corporation
Fair Isaac Corporation (FICO) is a data and analytics company focused on predicting consumer behavior through re-sellable algorithms (FICO Scores) and software (Applications and Decision Management Software). We believe Fair Isaac has meaningful growth opportunities across all its business lines. In FICO Scores, special pricing initiatives in B2B seem likely to continue. In Software, years of substantial investment are beginning to bear fruit and should lead to notable margin expansion over the next several years. Management has a shareholder-friendly capital allocation strategy with nearly all free cash flow used for share repurchases.
Information Technology
3.8%
Apollo Global Management, Inc.
Financials
3.7%
Accenture plc
Accenture plc (ACN) provides consulting and technology services to corporate clients around the world. Accenture is an industry leader with a global footprint, broad service offering, and entrenched customer relationships. The company is gaining market share by focusing on fast-growing digital, cloud, and security-related services. Margins are expanding even as the company invests in growth. Accenture generates significant free cash flow, which is being used for M&A, dividends, and share repurchases.
Information Technology
3.6%
MercadoLibre, Inc.
MercadoLibre, Inc. (MELI) is the largest e-commerce company in Latin America. The company operates the MercadoLibre e-commerce marketplace, the Mercado Pago fintech platform, and the Mercado Envios suite of shipping solutions for sellers on its platform. MercadoLibre benefits from the emergence of two secular trends: e-commerce and digital payments. The company has a significant first mover advantage and is investing aggressively in logistics to widen its competitive moat. Latin America is a predominantly cash-based economy with e-commerce penetration under 20%, and MercadoLibre has an attractive, asset-light marketplace business model. We believe its logistics network will become a key competitive advantage at scale, and we see a significant opportunity in Mercado Pago off-platform.
Consumer Discretionary
3.5%
MSCI Inc.
MSCI Inc. (MSCI) provides investment decision support tools to global investment institutions. We believe MSCI, the de facto standard for measuring global market performance, is positioned to benefit from the continuing development of emerging markets, passive investing, ESG, and the growth of global financial assets. We believe the company's indexes remain the global standard for cross-border investing and will continue to be selected by institutions when issuing new mandates. Both the index and multi-asset portfolio and risk analytics products are mission-critical and deeply embedded in client workflows.
Financials
3.4%
LPL Financial Holdings Inc.
LPL Financial Holdings Inc. (LPLA) is the largest independent broker-dealer in the U.S., with $1.1 trillion in AUM. It offers independent financial advisors the technology, brokerage services, and practice management support they need to run their own practice. As advisors continue to break away from wirehouses, we believe LPL is an attractive home for them and will continue to win share in this market. As it gathers more assets, LPL benefits from rising interest rates. LPL can leverage its economies of scale and generate superior margins that it can reinvest into its business. With a profitable business, good growth prospects, and underlying tailwinds, we believe LPL is well positioned to continue growing earnings per share at a rapid rate.
Moelis & Company CEO Ken Moelis at the 2018 Baron Investment Conference
11/09/18
At the 2018 Baron Investment Conference, Ron Baron joined Ken Moelis, chairman and CEO of Moelis & Company, on CNBC’s “Squawk Box” to discuss Moelis’ investment strategy and the outlook for M&A activity. Watch the full interview on www.cnbc.com.
Portfolio holdings as a percentage of net assets as of September 30, 2018 for Moelis & Company are as follows: Baron Growth Fund (0.6%), Baron Small Cap Fund (0.9%).
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.
Risks: In addition to general market conditions, FinTech Companies may be adversely impacted by government regulations, economic conditions and deterioration in credit markets. The Fund is non-diversified, which means it may have a greater percentage of its assets in a single issuer than a diversified fund. The Fund invests in companies of all sizes, including small and medium sized companies whose securities may be thinly traded and more difficult to sell during market downturns.
The Fund may not achieve its objectives.
Definitions (provided by BAMCO, Inc.): The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The FactSet Global Fintech IndexTM is an unmanaged and equal-weighted index that measures the equity market performance of companies engaged in Financial Technologies, primarily in the areas of software and consulting, data and analytics, digital payment processing, money transfer, and payment transaction-related hardware, across 30 developed and emerging markets. The Fund and the indexes include reinvestment of dividends. The indexes are unmanaged. The index performance is not fund performance; one cannot invest directly into an index.
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. Active Share is a term used to describe the share of a portfolio’s holdings that differ from that portfolio’s benchmark index. It is calculated by comparing the weight of each holding in the Fund to that holding’s weight in the benchmark. Positions with either a positive or negative weighting versus the benchmark have Active Share. An Active Share of 100% implies zero overlap with the benchmark. Active Share was introduced in 2006 in a study by Yale academics, M. Cremers and A. Petajisto, as a measure of active portfolio management.