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The Fund invests in small-sized U.S. companies with significant growth potential. Investments include fallen angels with strong long-term franchises that have disappointed investors, and special situations where lack of investor awareness creates opportunities. Diversified.
For the period ended 12/31/2022, the Baron Small Cap Fund received a 3-Star Overall Morningstar Rating™, 3-Star 3-Year Rating, 3-Star 5-Year Rating, and 3-Star 10-Year Rating. The Morningstar Ratings are based on the Morningstar Risk-Adjusted Return measures of 576, 576, 530, and 399 funds in the category, respectively. This Morningstar Rating is for the Retail share class only; other classes may have different performance characteristics.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Morningstar classifies funds as being large-cap, mid-cap, or small-cap based on the market capitalization of the fund’s stock holdings; and as value, blend, or growth based on the value-growth orientation of the stock holdings. The nine possible combinations of these characteristics correspond to the nine squares of the Morningstar Style Box–size is displayed along the vertical axis and style is displayed along the horizontal axis. Please note that the style boxes indicate the Fund’s equity style, not necessarily its Morningstar Category.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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 12/31/22
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1 Year
3 Years
5 Years
10 Years
Since Inception
Expense Ratio2
Gross
Net
BSCFX - Baron Small Cap Fund
-31.22%
3.70%
6.79%
9.93%
9.40%
1.29%
1.29%
Russell 2000 Growth Index
-26.36%
0.65%
3.51%
9.20%
5.65%
S&P 500 Index
-18.11%
7.66%
9.42%
12.56%
7.68%
1Not annualized.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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.
Growth of 10k
1Not annualized.
Expense ratios are as of the fiscal year ended 9/30/2020
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 the 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 above.
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.
Historical Performance
as of 01/31/23
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Year
Baron Small Cap Fund
Russell 2000 Growth Index
S&P 500 Index
2022
-31.22%
-26.36%
-18.11%
2021
15.53%
2.83%
28.71%
2020
40.33%
34.63%
18.40%
2019
34.50%
28.48%
31.49%
2018
-7.39%
-9.31%
-4.38%
2017
27.13%
22.17%
21.83%
2016
9.94%
11.32%
11.96%
2015
-5.24%
-1.38%
1.38%
2014
1.69%
5.60%
13.69%
2013
37.77%
43.30%
32.39%
2012
17.98%
14.59%
16.00%
2011
-1.58%
-2.91%
2.11%
2010
23.47%
29.09%
15.06%
2009
35.26%
34.47%
26.46%
2008
-40.24%
-38.54%
-37.00%
2007
11.69%
7.05%
5.49%
2006
11.83%
13.35%
15.79%
2005
8.34%
4.15%
4.91%
2004
22.16%
14.31%
10.88%
2003
38.82%
48.54%
28.68%
2002
-9.66%
-30.26%
-22.06%
2001
5.19%
-9.23%
-11.93%
2000
-17.53%
-22.43%
-9.10%
1999
70.78%
43.09%
21.04%
1998
2.23%
1.23%
28.58%
1997
3.10%
-8.20%
2.87%
1Not annualized.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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.
Distributions
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Record Date
Ex Date
Payable Date
Income
Return of Capital
Short-Term Capital Gain
Long-Term Capital Gain
Total
Re-Invest NAV
Calendar-Yr Return
12/07/2022
12/08/2022
12/09/2022
$0.0000
$0.0000
$0.0000
$1.4521
$1.4521
11/22/2021
11/23/2021
11/24/2021
$0.0000
$0.0000
$0.0000
$4.7182
$4.7182
$37.91
15.53%
11/23/2020
11/24/2020
11/25/2020
$0.0000
$0.0000
$0.0000
$4.1153
$4.1153
$34.67
40.33%
11/25/2019
11/26/2019
11/27/2019
$0.0000
$0.0000
$0.0000
$2.8191
$2.8191
$29.16
11/28/2018
11/29/2018
11/30/2018
$0.0000
$0.0000
$0.0000
$2.6130
$2.6130
$27.12
-7.39%
11/27/2017
11/28/2017
11/29/2017
$0.0000
$0.0000
$0.0000
$3.8460
$3.8460
$28.03
27.13%
11/28/2016
11/29/2016
11/30/2016
$0.0000
$0.0000
$0.0000
$5.6812
$5.6812
$25.53
9.94%
12/02/2015
12/03/2015
12/04/2015
$0.0000
$0.0000
$0.0000
$3.4129
$3.4129
$28.52
-5.24%
12/01/2014
12/02/2014
12/03/2014
$0.0000
$0.0000
$0.0000
$2.0346
$2.0346
$32.77
1.69%
11/25/2013
11/26/2013
11/27/2013
$0.0000
$0.0000
$0.0000
$1.2843
$1.2843
$33.49
37.77%
11/28/2012
11/29/2012
11/30/2012
$0.0000
$0.0000
$0.0000
$0.8010
$0.8010
$25.65
17.98%
06/22/2012
06/25/2012
06/26/2012
$0.0000
$0.0000
$0.0000
$0.0130
$0.0130
$24.07
17.98%
11/28/2011
11/29/2011
11/30/2011
$0.0000
$0.0000
$0.0000
$0.4560
$0.4560
$22.10
-1.58%
05/27/2009
05/28/2009
05/29/2009
$0.0000
$0.0000
$0.0000
$0.0010
$0.0010
$15.18
35.26%
12/19/2007
12/20/2007
12/21/2007
$0.0000
$0.0000
$0.1070
$1.5600
$1.6670
$23.79
11.69%
11/17/2006
11/20/2006
11/21/2006
$0.0000
$0.0000
$0.0000
$3.0570
$3.0570
$22.66
11.83%
11/21/2005
11/22/2005
11/23/2005
$0.0000
$0.0000
$0.0000
$0.7360
$0.7360
$22.70
8.34%
11/22/2004
11/23/2004
11/24/2004
$0.0000
$0.0000
$0.0000
$0.5530
$0.5530
$20.62
22.16%
11/20/2002
11/21/2002
11/22/2002
$0.0000
$0.0000
$0.0000
$0.3810
$0.3810
$13.74
-9.66%
11/15/2000
11/16/2000
11/17/2000
$0.0000
$0.0000
$0.0000
$0.3790
$0.3790
$14.26
-17.53%
Performance Characteristics: BSCFX
as of 12/31/22
3 Years
5 Years
10 Years
Standard Deviation (%)
27.09
24.38
19.13
Sharpe Ratio
0.11
0.23
0.48
Alpha (%)
3.36
3.50
1.50
Beta
0.96
0.97
0.91
R-Squared (%)
88.78
90.70
89.22
Tracking Error (%)
9.13
7.47
6.52
Information Ratio
0.33
0.44
0.11
Upside Capture (%)
100.24
100.92
92.10
Downside Capture (%)
91.83
90.79
86.37
Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Small Cap Fund's(BSCFX) benchmark (Russell 2000 Growth Index). Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.
NAV
$28.80
Daily Change ($)
$0.58
Daily Change (%)
$0.58
MTD
3.90%
QTD
16.93%
YTD
16.93%
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BSCFX - Baron Small Cap Fund
Russell 2000 Growth Index
S&P 500 Index
QTD1
12.55%
9.95%
6.28%
YTD1
12.55%
9.95%
6.28%
1 Year
-9.93%
-6.50%
-8.22%
3 Years
7.27%
4.26%
9.88%
5 Years
8.32%
4.68%
9.54%
10 Years
10.56%
9.54%
12.68%
Since Inception
9.88%
6.03%
7.91%
Expense Ratio2 - Gross
1.30%
Expense Ratio2 - Net
1.30%
*As of 01/31/23
*Annualized as of 01/31/23
1Not annualized.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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.
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BSCFX - Baron Small Cap Fund
Russell 2000 Growth Index
S&P 500 Index
1 Year
-31.22%
-26.36%
-18.11%
3 Years
3.70%
0.65%
7.66%
5 Years
6.79%
3.51%
9.42%
10 Years
9.93%
9.20%
12.56%
Since Inception
9.40%
5.65%
7.68%
Expense Ratio2 - Gross
1.29%
Expense Ratio2 - Net
1.29%
*As of 12/31/22
*Annualized as of 01/31/23
1Not annualized.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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.
as of 12/31/22
3 Years
5 Years
10 Years
Standard Deviation (%)
27.09
24.38
19.13
Sharpe Ratio
0.11
0.23
0.48
Alpha (%)
3.36
3.50
1.50
Beta
0.96
0.97
0.91
R-Squared (%)
88.78
90.70
89.22
Tracking Error (%)
9.13
7.47
6.52
Information Ratio
0.33
0.44
0.11
Upside Capture (%)
100.24
100.92
92.10
Downside Capture (%)
91.83
90.79
86.37
Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Small Cap Fund's(BSCFX) benchmark (Russell 2000 Growth Index). Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.
as of 01/31/23
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Year
Baron Small Cap Fund
Russell 2000 Growth Index
S&P 500 Index
2022
-31.22%
-26.36%
-18.11%
2021
15.53%
2.83%
28.71%
2020
40.33%
34.63%
18.40%
2019
34.50%
28.48%
31.49%
2018
-7.39%
-9.31%
-4.38%
2017
27.13%
22.17%
21.83%
2016
9.94%
11.32%
11.96%
2015
-5.24%
-1.38%
1.38%
2014
1.69%
5.60%
13.69%
2013
37.77%
43.30%
32.39%
2012
17.98%
14.59%
16.00%
2011
-1.58%
-2.91%
2.11%
2010
23.47%
29.09%
15.06%
2009
35.26%
34.47%
26.46%
2008
-40.24%
-38.54%
-37.00%
2007
11.69%
7.05%
5.49%
2006
11.83%
13.35%
15.79%
2005
8.34%
4.15%
4.91%
2004
22.16%
14.31%
10.88%
2003
38.82%
48.54%
28.68%
2002
-9.66%
-30.26%
-22.06%
2001
5.19%
-9.23%
-11.93%
2000
-17.53%
-22.43%
-9.10%
1999
70.78%
43.09%
21.04%
1998
2.23%
1.23%
28.58%
1997
3.10%
-8.20%
2.87%
1Not annualized.
2Expense ratios are as of the fiscal year ended 9/30/2021
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 the 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 above.
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.
Gartner, Inc. (IT) is the leading independent provider of research and advisory services for IT, HR, sales, finance, and marketing leaders. Gartner has a vast addressable market, which management estimates exceeds $70 billion annually, implying a penetration rate of less than 3%. IT is rapidly changing and growing in strategic importance, leading users to turn to third-party providers for insight into trends. Gartner enjoys retention rates of more than 100%, driven by the low price of its research relative to value. We think consistent execution in Global Technology Sales and improvements in Global Business Sales will help accelerate Research growth into the low double digits.
Information Technology
6.4%
ASGN Incorporated
ASGN Incorporated (ASGN) is the second largest staffing firm in the U.S., providing IT and professional services in the technology, digital, and creative fields across commercial and government sectors. ASGN participates in segments of the professional staffing industry (scientific, IT/engineering, advertising, digital, creative, marketing, and government) experiencing robust secular growth. Focus on the non-commoditized high end of the market should allow the company to maintain industry-high organic growth rates and gross margins. We think it should benefit from increased U.S. outsourcing penetration and the shortage of skilled workers in its verticals. Its business model is characterized by robust operating margins and substantial free cash flow generation.
Industrials
3.6%
ICON Plc
ICON plc (ICLR) is the second largest global contract research organization (CRO), providing outsourced drug development services to pharmaceutical and biotechnology clients. ICON has expertise in multiple therapeutic areas. ICON is the second largest CRO post its 2021 merger with PRA Health. As drug trials become increasingly complex and biopharma companies consolidate vendor lists among top-tier providers and seek stickier strategic relationships, we believe large global CROs will be the primary beneficiaries. ICON's scale benefits enhance relevance to existing and potential customers. The outsourcing trend is accelerating, driven by biopharma's need for a lower, more variable cost structure and the inherent lack of biotechnology infrastructure.
Health Care
3.5%
Kinsale Capital Group, Inc.
Kinsale Capital Group, Inc. (KNSL) is a property and casualty insurer focused exclusively on the excess and surplus (E&S) lines market, which includes risks that are unique or difficult to place in the standard insurance market. We believe Kinsale is a well-run insurer that should grow earnings and book value per share much faster than its peers. Its small size, E&S market focus, underwriting discipline, and efficient technology platform enable Kinsale to rapidly grow premiums while delivering industry-leading underwriting margins. Management is highly regarded and has decades of experience in the E&S market. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.
Financials
3.3%
SiteOne Landscape Supply, Inc.
SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in North America. Through its large branch network, the company offers a broad selection of products across irrigation, agronomics, hardscapes, and nursery to landscaping professionals. While SiteOne is more than five times the size of its closest competitor, it has only 15% share of a highly fragmented market. It has significant opportunity to further consolidate the industry through accretive acquisitions, driven by an experienced management team with a strong M&A track record. The core landscaping market generally grows faster than GDP over time and is relatively recession resilient. SiteOne is also investing in initiatives to increase the productivity of its sales force and in-store associates to expand margins over time.
Industrials
3.1%
Red Rock Resorts, Inc.
Red Rock Resorts, Inc. (RRR) owns 20 local casinos in Las Vegas, manages one tribal casino in California, and is in the planning stages of developing another tribal casino in California. It also controls eight gaming-entitled sites consisting of almost 600 acres in Las Vegas and 30 acres in Reno. The company operates in the improving Las Vegas locals gaming market, which is now back up to its 2007 peak. We think the market is attractive, given favorable fundamentals, including population growth 2.7 times the national average and $20 billion of development projects that are either in the planning stages or under development. The market also offers the lowest tax rate in the U.S. with limitations on the development of other casinos in the region. Red Rock also has the option to develop or sell its owned acreage for gaming in Las Vegas and Reno.
Consumer Discretionary
2.8%
Installed Building Products, Inc.
Installed Building Products, Inc. (IBP) is the second largest residential insulation installer in the U.S., with 27% market share. The company also installs complementary building products, including garage doors, shower doors, closet shelving, mirrors, and rain gutters. Installed Building Products is poised to benefit from ongoing growth across its primary markets, including U.S. residential and non-residential construction. Its durable cost advantage enables it to expand faster than the market through share gains and accretive acquisitions and mitigates disintermediation risk. We believe the company can compound EBITDA at 15% to 20% per year over the next several years. The management team owns significant stock, and the valuation is attractive, in our view.
Consumer Discretionary
2.7%
Vertiv Holdings, LLC
Vertiv Holdings, LLC (VRT) came public in February 2020 through a SPAC backed by Goldman Sachs and David Cote, Honeywell's highly regarded former CEO. Vertiv is a pure-play full-service provider of digital-critical infrastructure solutions for the data center and communications end markets. Vertiv was poorly managed by its former owner, and we think the new management team will be able to improve operations and close the 500 basis point margin gap that exists between Vertiv and its peers as Vertiv executes on its strategy and improves its balance sheet. We are also positive on the fundamentals of the data center market and Vertiv's competitive position, which underpins a top-line growth rate well above industrial peers.
Industrials
2.7%
Floor & Decor Holdings, Inc.
Floor & Decor Holdings, Inc. (FND) is a specialty retailer of hard-surface flooring (tile, vinyl, wood, stone, and laminate) and accessories in the U.S. By sourcing directly from vendors, Floor & Decor can sell at low prices. It operates 178 low-cost warehouse stores catering to professional contractors. We view Floor & Decor as a differentiated, high-growth retailer offering a broader assortment of low-cost products than its competitors. The company holds an 8% market share in the highly fragmented $21 billion U.S. hard-surface flooring market, where we believe it will continue to gain share. We believe the replacement of carpet with hard-surface flooring, which we see as a secular shift in the flooring industry, will aid growth. We believe Floor & Decor can continue to grow stores 20%+ and generate strong shareholder returns.
Consumer Discretionary
2.5%
Planet Fitness, Inc.
Planet Fitness, Inc. (PLNT) is the leading franchiser and operator of low-cost fitness centers, with 2,353 gyms (the majority of which are franchises) and 16.6 million members. The company also sells branded fitness equipment and merchandise to all franchise locations. As the largest low-cost gym operator in the U.S. with the largest marketing budget in the industry, Planet Fitness is positioned to benefit from industry growth driven by increasing consumer focus on health and wellness. The company is also expanding its market by attracting first-time users (78% of Americans do not belong to a fitness club), with a long-term target of more than 4,000 gyms in the U.S. Its asset-light franchise business model produces high margins, returns, and free cash flow as well as recurring revenue streams.
Consumer Discretionary
2.0%
Total
32.6%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
All Holdings
as of 12/31/22
Name
Sector
% of Net Assets
Gartner, Inc.
Information Technology
6.4%
ASGN Incorporated
Industrials
3.6%
ICON Plc
Health Care
3.5%
Kinsale Capital Group, Inc.
Financials
3.3%
SiteOne Landscape Supply, Inc.
Industrials
3.1%
Red Rock Resorts, Inc. - Cl. A
Consumer Discretionary
2.8%
Installed Building Products, Inc.
Consumer Discretionary
2.7%
Floor & Decor Holdings, Inc.
Consumer Discretionary
2.5%
TransDigm Group, Inc.
Industrials
2.0%
Planet Fitness Inc - Cl a
Consumer Discretionary
2.0%
BRP Group, Inc.
Financials
2.0%
Chart Industries, Inc.
Industrials
1.9%
Guidewire Software, Inc.
Information Technology
1.9%
The Cheesecake Factory, Inc.
Consumer Discretionary
1.8%
Liberty Media Corporation Series C Liberty Formula One
Baron Small Cap Fund Featured Among “6 Funds to Play a Rally”
09/07/21
In a September 7, 2021, article, Barrons featured Baron Small Cap Fund as a fund that has outpaced peers and could be well positioned for a recovery in the small cap space. Read the full Baron article. [Subscription required to access]
Ron Baron Interviewed on Bloomberg’s Masters in Business Podcast
We are pleased to announce that Cliff Greenberg and Andrew Peck have been named Co-Chief Investment Officers of Baron Capital.
Morningstar Reaffirms Baron Small Cap Fund’s “Silver” Rating
09/18/19
In its annual update of Baron Small Cap Fund’s profile, Morningstar reaffirmed the Fund’s “Silver” Analyst Rating, citing Portfolio Manager Cliff Greenberg’s proven investment process over the 23 years he has managed the Fund and his instrumental role in the Firm’s success. To view the profile, visit www.morningstar.com. (Subscription required to access).
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%).
Morningstar Reaffirms Baron Small Cap Fund’s “Silver” Rating
10/11/18
In its annual update of Baron Small Cap Fund’s profile, Morningstar reaffirmed the Fund’s “Silver” Analyst Rating, citing Portfolio Manager Cliff Greenberg’s proven investment process over the 22 years he has managed the Fund and his instrumental role in the Firm’s success. Read the profile at www.morningstar.com. (Subscription required to access).
The Morningstar Analyst Rating is not a credit or risk rating, but a subjective evaluation performed by the analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars (process, performance, people, parent and price). Morningstar’s analysts use this valuation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors and the weightings of each pillar may vary. The Analyst Rating reflects overall assessment and is overseen by Morningstar’s Analyst Rating Committee. The analyst rating scale is five-tiered, with three positive ratings (Gold, Silver, Bronze), a Neutral rating and a Negative rating, with Gold being the highest rating and Negative being the lowest rating. The Morningstar Analyst Ratings should not be used as the sole basis in evaluating a mutual fund and are based on Morningstar’s current expectations about future events. Morningstar does not represent ratings as a guarantee. Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction. A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars that give the analysts a high level of conviction. A “Bronze”-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars, nor does it distinguish itself very positively. A “Negative” rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months.
The Morningstar Analyst Rating is not a credit or risk rating, but a subjective evaluation performed by the analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars (process, performance, people, parent and price). Morningstar’s analysts use this valuation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors and the weightings of each pillar may vary. The Analyst Rating reflects overall assessment and is overseen by Morningstar’s Analyst Rating Committee. The analyst rating scale is five-tiered, with three positive ratings (Gold, Silver, Bronze), a Neutral rating and a Negative rating, with Gold being the highest rating and Negative being the lowest rating. The Morningstar Analyst Ratings should not be used as the sole basis in evaluating a mutual fund and are based on Morningstar’s current expectations about future events. Morningstar does not represent ratings as a guarantee. Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction. A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars that give the analysts a high level of conviction. A “Bronze”-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars, nor does it distinguish itself very positively. A “Negative” rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months.
Baron Capital Inc., bears no responsibility for the external website provided and makes no warranties, either express or implied, concerning the content of such site or any information, products or services linked to the website.
Baron Small Cap Fund Earns "Silver" Rating from Morningstar
11/15/17
We are pleased to announce that Baron Small Cap Fund has been awarded Morningstar Research’s “Silver” Analyst Rating.™ Fewer than 2% of funds in Morningstar’s U.S. mutual fund database earn “Silver” or “Gold” ratings. The Fund, managed by Cliff Greenberg since its September 30, 1997 inception, invests in small-sized U.S. companies with significant growth potential.
The Morningstar Analyst Rating is not a credit or risk rating, but a subjective evaluation performed by the analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars (process, performance, people, parent and price). Morningstar’s analysts use this valuation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors and the weightings of each pillar may vary. The Analyst Rating reflects overall assessment and is overseen by Morningstar’s Analyst Rating Committee. The analyst rating scale is five-tiered, with three positive ratings (Gold, Silver, Bronze), a Neutral rating and a Negative rating, with Gold being the highest rating and Negative being the lowest rating. The Morningstar Analyst Ratings should not be used as the sole basis in evaluating a mutual fund and are based on Morningstar’s current expectations about future events. Morningstar does not represent ratings as a guarantee. Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction. A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars that give the analysts a high level of conviction. A “Bronze”-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars, nor does it distinguish itself very positively. A “Negative” rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months.
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: Specific risks associated with investing in smaller companies include that the securities may be thinly traded and more difficult to sell during market downturns. Even though the Fund is diversified, it may establish significant positions where the Adviser has the greatest conviction. This could increase volatility of the Fund's returns.
The Fund may not achieve its objectives.
Definitions (provided by BAMCO, Inc.): The indexes are unmanaged. The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The indexes and the Fund include reinvestment of dividends, net of withholding taxes, which positively impact the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly into an index.
Definitions (provided by BAMCO, Inc.): Standard Deviation: measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility (risk). Sharpe Ratio: is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better a fund’s risk adjusted performance. Alpha: measures the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. Beta: measures a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. R-Squared: measures how closely a fund’s performance correlates to the performance of the benchmark index, and thus is a measurement of what portion of its performance can be explained by the performance of the index. Values for R-Squared range from 0 to 100, where 0 indicates no correlation and 100 indicates perfect correlation. Tracking Error: measures how closely a fund’s return follows the benchmark index returns. It is calculated as the annualized standard deviation of the difference between the fund and the index returns. Information Ratio: measures the excess return of a fund divided by the amount of risk the fund takes relative to the benchmark index. The higher the information ratio, the higher the excess return expected of the fund, given the amount of risk involved. Upside Capture: explains how well a fund performs in time periods where the benchmark’s returns are greater than zero. Downside Capture: explains how well a fund performs in time periods where the benchmark’s returns are less than zero
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.
One year turnover information to the most recent quarter and average market cap (unweighted) is available upon request.
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”). All GICS data is provided “as is” with no warranties. The Adviser may have reclassified/classified certain securities in or out of a sub-industry. Such reclassifications are not supported by S&P or MSCI.