Prices & Performance

Prices

as of 08/23/19

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$11.29 -$0.20 -1.74% -3.26% -2.84% 18.72%

Performance

 

as of 07/31/19

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QTD1 YTD1 1 Year Since Inception Expense Ratio2
Gross Net
BHCFX - Baron Health Care Fund 0.43% 22.71% 8.76% 13.15% 4.94% 1.10%
Russell 3000 Health Care Index -1.36% 8.74% 4.05% 11.06%
S&P 500 Index 1.44% 20.24% 7.99% 12.15%

as of 06/30/19

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QTD1 YTD1 Since Inception Expense Ratio2
Gross Net
BHCFX - Baron Health Care Fund 6.31% 22.19% 13.73% 4.94% 1.10%
Russell 3000 Health Care Index 1.43% 10.23% 13.21%
S&P 500 Index 4.30% 18.54% 11.69%

as of 07/31/19

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Year Baron Health Care Fund Russell 3000 Health Care Index S&P 500 Index
2018 -4.90% 4.85% -4.02%

This information is not currently available.

 
NAV $11.29
Daily Change ($) -$0.20
Daily Change (%) -1.74%
MTD -3.26%
QTD -2.84%
YTD 18.72%
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BHCFX - Baron Health Care Fund Russell 3000 Health Care Index S&P 500 Index
QTD1 0.43% -1.36% 1.44%
YTD1 22.71% 8.74% 20.24%
1 Year 8.76% 4.05% 7.99%
Since Inception 13.15% 11.06% 12.15%
Expense Ratio2 - Gross 4.94%
Expense Ratio2 - Net 1.10%

*As of 07/31/19

*Annualized as of 07/31/19

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BHCFX - Baron Health Care Fund Russell 3000 Health Care Index S&P 500 Index
QTD1 6.31% 1.43% 4.30%
YTD1 22.19% 10.23% 18.54%
Since Inception 13.73% 13.21% 11.69%
Expense Ratio2 - Gross 4.94%
Expense Ratio2 - Net 1.10%

*As of 06/30/19

*Annualized as of 07/31/19

as of 08/25/19

3 Years 5 Years 10 Years Since Inception

as of 07/31/19

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Year Baron Health Care Fund Russell 3000 Health Care Index S&P 500 Index
2018 -4.90% 4.85% -4.02%

Portfolio Characteristics

 

as of 06/30/19

Baron Health Care Fund Russell 3000 Health Care Total Return Index
Net Assets$11.53 million
# of Equity Securities / % of Net Assets44 / 96.3%
Turnover (1 Year)53.89%
Active Share75.6%
Median Market Cap$9.28 billion$0.90 billion
Weighted Average Market Cap$48.07 billion$116.56 billion
EPS Growth (3-5 year forecast)28.5%11.8%
Price/Earnings Ratio (trailing 12-month)31.024.3
Price/Book Ratio5.44.1
Price/Sales Ratio3.22.1
Current Expense Ratio Date12/31/2018

The Net Assets include all share classes combined.

Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Holdings

as of 07/31/19

Open All Close All Holding Sector % of Net Assets

UnitedHealth Group Incorporated

UnitedHealth Group Incorporated (UNH) is a diversified health and well-being company with $200 billion in revenue that operates across four segments: United Healthcare, Optum Health, OptumInsight, and OptumRX. The company serves 134 million individuals in all 50 states and more than 125 countries.
At twice the size of the next largest health maintenance organization by revenue, UnitedHealth is the leading health care franchise in the U.S. We believe it should continue to see strong growth and profitability driven by positive demographic trends and its ability to manage health care costs by leveraging its size and scale, continuing its industry-leading technology investments, expanding its expertise in population health, and continuing to grow its portfolio of providers, all of which enables it to keep and effectively manage more of its health care spending in- house.

Health Care 7.0%

Abbott Laboratories

Abbott Laboratories (ABT) is a global manufacturer and provider of health care products and medical devices in the areas of nutritionals, diagnostics, vascular intervention, diabetes, coronary, endovascular, and structural heart disease.
We expect Abbott to generate mid-to-high single digit organic revenue growth driven by multiple key products, including the Freestyle Libre glucose monitoring system for people with diabetes, the MitraClip device for mitral valve regurgitation, and the Alinity family of next-generation core lab systems. We think Abbott can generate mid-teens constant currency EPS growth.

Health Care 5.4%

Merck & Co., Inc.

Health Care 4.6%

Humana Inc.

Humana Inc. (HUM) is a diversified health and wellness company offering a broad portfolio of medical insurance and managed care products and services.
Humana is a leading player in the Medicare Advantage market, which should experience sustained growth driven by the aging population. We believe it is well-positioned to benefit from the shift toward value-based care, which rewards providers who deliver better health care outcomes at lower cost. Humana has particular expertise in managing high-cost, high-risk patients. We believe the company can take market share from state-based managed Medicaid programs. The company is also making progress in developing integrated care models, with a heavy investment in home health care.

Health Care 4.6%

argenx SE

argenx SE (ARGX) is a biotech company developing antibodies for the treatment of autoimmune disorders and cancer based on the uniquely powerful immune system of llamas.
argenx's main product, ARGX-113, which treats a rare muscle weakness disorder, showed positive results in a recent clinical trial and has potentially broad applicability in ameliorating overactive antibody-based diseases. We expect the share price to increase as the company proves its products' effectiveness in multiple autoantibody disorders.

Health Care 4.5%

AstraZeneca PLC

AstraZeneca PLC (AZN) is a global biopharmaceutical company that, since 2013, has followed a strategy based on pipeline-driven transformation, and a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses.
We think AstraZeneca’s focused strategy could potentially produce a best-in-class growth profile. The company is a leader in economically attractive markets, particularly oncology, and has an opportunity to participate in emerging transformative markets, such as Alzheimer’s. After a trough in revenue and earnings caused by patent expiration of its blockbuster drugs in 2016, AstraZeneca has experienced strong growth. We forecast 2018 to 2022 revenue and EPS compound annual growth rate of 7% and 15%, respectively.

Health Care 3.8%

Bio-Techne Corporation

Bio-Techne Corporation (TECH) is a leading developer and manufacturer of life sciences tools, such as high-quality purified proteins and protein analysis tools, which are sold to biomedical researchers and clinical research laboratories.
We believe Bio-Techne's core biotech reagents business is an attractive business which we think will generate consistent mid-single digit growth, very high margins, and strong free cash flow. Management has added several new growth drivers for the company through acquisitions, including an automated Western blotting platform and a urine-based prostate cancer biomarker test to reduce unnecessary prostate biopsies in men 50 or older with a PSA value between 2-10. The company's organic growth has been accelerating and we think the runway for growth is long.

Health Care 3.4%

Thermo Fisher Scientific Inc.

Health Care 3.1%

Vertex Pharmaceuticals Incorporated

Vertex Pharmaceuticals Incorporated (VRTX) is the leader in cystic fibrosis (CF) treatment. Vertex has three currently approved and marketed drugs, each for treatment of differing subsets of CF. These drugs represent paradigm shifts for CF patients hoping to extend their lives beyond their 30s-40s.
We believe Vertex can grow revenue and earnings in the double digits upon approval of the expanded access of its drugs into Europe. Longer term success over the next three to five years will depend on its development of a novel pipeline targeting diseases like sickle cell anemia or alpha-1 anti-trypsin disease.

Health Care 3.0%

Sage Therapeutics, Inc.

SAGE Therapeutics, Inc. (SAGE) is developing treatments for central nervous system disorders, particularly for depression. Lead asset SAGE-547 is being developed for postpartum depression (PPD) and major depressive disorder, with initial PPD commercialization expected this year.
We believe SAGE-547 has the ability to change the paradigm in treatment of postpartum depression. Confidence comes from strong Phase 2 and 3 results and the FDA's identification of SAGE-547 as a breakthrough drug. SAGE is also led by a talented CEO, Jeff Jones, who has 20+ years of experience in central nervous system-based development as a former CMO of Forest Labs. In our view, SAGE has impressive data for a major depression drug.

Health Care 2.8%

Total

42.2%

as of 06/30/19

Name Sector % of Net Assets

UnitedHealth Group Incorporated

Health Care 6.9%

argenx SE - ADR

Health Care 5.2%

Abbott Laboratories

Health Care 4.8%

DexCom, Inc.

Health Care 4.5%

Sage Therapeutics, Inc.

Health Care 4.3%

Bio-Techne Corporation

Health Care 3.8%

Vertex Pharmaceuticals Incorporated

Health Care 3.5%

HUMANA, INC.

Health Care 3.3%

CareDx, Inc.

Health Care 3.2%

INSULET CORPORATION

Health Care 3.2%

Illumina, Inc.

Health Care 3.1%

AstraZeneca PLC

Health Care 2.9%

Merck & Co., Inc.

Health Care 2.8%

IDEXX Laboratories, Inc.

Health Care 2.7%

Intuitive Surgical, Inc.

Health Care 2.5%

Alcon Inc.

Health Care 2.5%

Acceleron Pharma Inc.

Health Care 2.4%

HCA Healthcare, Inc.

Health Care 2.3%

Teleflex Incorporated

Health Care 2.3%

Dechra Pharmaceuticals PLC

Health Care 2.0%

Covetrus, Inc.

Health Care 2.0%

The Cooper Companies, Inc.

Health Care 1.9%

Alexandria Real Estate Equities, Inc.

Real Estate 1.7%

Veracyte, Inc.

Health Care 1.7%

Iqvia Holdings Inc.

Health Care 1.6%

Silk Road Medical, Inc.

Health Care 1.6%

Inspire Medical Systems, Inc.

Health Care 1.6%

Edwards Lifesciences Corp.

Health Care 1.6%

Mettler-Toledo International, Inc.

Health Care 1.6%

ICON plc

Health Care 1.4%

Veeva Systems Inc. Cl - A

Health Care 1.4%

Neurocrine Biosciences, Inc.

Health Care 1.3%

ViewRay Incorporated

Health Care 1.2%

Zai Lab Limited -Adr

Health Care 1.1%

HealthEquity, Inc.

Health Care 0.9%

West Pharmaceutical Services, Inc.

Health Care 0.9%

Arrowhead Pharmaceuticals, Inc.

Health Care 0.9%

Exact Sciences Corporation

Health Care 0.8%

Catalent, Inc.

Health Care 0.7%

Alector, Inc.

Health Care 0.6%

Guardant Health, Inc.

Health Care 0.5%

Align Technology, Inc.

Health Care 0.5%

Ligand Pharmaceuticals Incorporated

Health Care 0.5%

Adaptive Biotechnologies Corporation

Health Care 0.1%

GICS SECTOR BREAKDOWN

As of 07/31/19

As of 07/31/19

Contributors/Detractors

Quarterly as of 06/30/19

Top Contributors Average Weight Contribution
DexCom, Inc. 3.79% 1.03%
Insulet Corp. 2.98% 0.73%
Silk Road Medical, Inc. 1.50% 0.69%
IDEXX Laboratories, Inc. 2.99% 0.67%
argenx SE 4.87% 0.62%

Quarterly as of 06/30/19

Top Detractors Average Weight Contribution
Covetrus, Inc. 1.91% -0.53%
InflaRx N.V. 0.43% -0.44%
Intersect ENT, Inc. 0.77% -0.40%
Acceleron Pharma Inc. 2.35% -0.34%
Intuitive Surgical, Inc. 2.72% -0.33%

Insights & News

Documents

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, the value of the Fund will be affected by investments in health care companies which are subject to a number of risks, including the adverse impact of legislative actions and government regulations. 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 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 indexes are unmanaged. The Russell 3000® Health Care Index is an unmanaged index representative of companies involved in medical services or health care in the Russell 3000 Index, which is comprised of the 3,000 largest U.S. companies as determined by total market capitalization. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The indexes and the Fund are with dividends, which positively impact the performance results. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Russell Investment Group. Index performance is not fund performance. Investors cannot invest directly in 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.