Prices & Performance

Prices

as of 10/11/19

scroll to view all
NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$11.83 $0.11 0.94% 0.08% 0.08% 28.03%

Performance

 

as of 08/31/19

scroll to view all
QTD1 YTD1 1 Year Since Inception Expense Ratio2
Gross Net
BDAIX - Baron Durable Advantage Fund - I 2.44% 27.06% 9.79% 10.33% 5.71% 0.70%
S&P 500 Index -0.17% 18.34% 2.92% 7.69%

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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 has reimbursed certain expenses (by contract as long as BAMCO, Inc. is the adviser to the Fund) and 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.

as of 09/30/19

scroll to view all
QTD1 YTD1 1 Year Since Inception Expense Ratio2
Gross Net
BDAIX - Baron Durable Advantage Fund - I 3.14% 27.92% 10.23% 10.25% 5.71% 0.70%
S&P 500 Index 1.70% 20.55% 4.25% 8.46%

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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 has reimbursed certain expenses (by contract as long as BAMCO, Inc. is the adviser to the Fund) and 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.

1Not annualized.

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.

Expense ratios are estimated for the current fiscal year.

as of 09/30/19

scroll to view all
Year Baron Durable Advantage Fund S&P 500 Index
2018 -7.28% -4.38%

1Not annualized.

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.

2Expense ratios are as of the fiscal year ended 9/30/2018

scroll to view all
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
11/28/2018 11/29/2018 11/30/2018 $0.035 $0.000 $0.000 $0.000 $0.035 $9.91 -7.28%
 
NAV $11.83
Daily Change ($) $0.11
Daily Change (%) 0.94%
MTD 0.08%
QTD 0.08%
YTD 28.03%
scroll to view all
BDAIX - Baron Durable Advantage Fund - I S&P 500 Index
QTD1 2.44% -0.17%
YTD1 27.06% 18.34%
1 Year 9.79% 2.92%
Since Inception 10.33% 7.69%
Expense Ratio2 - Gross 5.71%
Expense Ratio2 - Net 0.70%

*As of 08/31/19

*Annualized as of 09/30/19

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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 has reimbursed certain expenses (by contract as long as BAMCO, Inc. is the adviser to the Fund) and 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.

scroll to view all
BDAIX - Baron Durable Advantage Fund - I S&P 500 Index
QTD1 3.14% 1.70%
YTD1 27.92% 20.55%
1 Year 10.23% 4.25%
Since Inception 10.25% 8.46%
Expense Ratio2 - Gross 5.71%
Expense Ratio2 - Net 0.70%

*As of 09/30/19

*Annualized as of 09/30/19

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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 has reimbursed certain expenses (by contract as long as BAMCO, Inc. is the adviser to the Fund) and 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.

as of 10/14/19

3 Years 5 Years 10 Years Since Inception

as of 09/30/19

scroll to view all
Year Baron Durable Advantage Fund S&P 500 Index
2018 -7.28% -4.38%

1Not annualized.

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.

2Expense ratios are as of the fiscal year ended 9/30/2018

Select Year
Record Date 11/28/2018
Ex Date 11/29/2018
Payable Date 11/30/2018
Income $0.035
Return of Capital $0.000
Short-Term Capital Gain $0.000
Long-Term Capital Gain $0.000
Total $0.035
Re-Invest NAV $9.91
Calendar-Yr Return -7.28%

Portfolio Characteristics

 

as of 09/30/19

Baron Durable Advantage Fund S&P 500 Index
Net Assets$7.07 million
# of Equity Securities / % of Net Assets36 / 96.6%
Turnover (1 Year)13.23%
Active Share80.2%
Median Market Cap$78.56 billion$22.72 billion
Weighted Average Market Cap$199.99 billion$249.37 billion
EPS Growth (3-5 year forecast)11.9%11.4%
Price/Earnings Ratio (trailing 12-month)27.520.0
Price/Book Ratio4.53.1
Price/Sales Ratio3.92.1
Current Expense Ratio Date9/30/2018

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 09/30/19

Open All Close All Holding Sector % of Net Assets

Microsoft Corporation

Microsoft Corporation (MSFT) is a software company traditionally known for its Windows and Office products. Over the last five years, it has built a $38 billion cloud business. This includes its infrastructure-as-a-service Azure business, Office 365, and Dynamics 365 (Microsoft's CRM offering).
Microsoft is led by Satya Nadella, who has refocused the company on cloud computing and AI. He has been quite successful thus far, with Microsoft's commercial cloud business now representing over 25% of its revenues and growing at a 45% rate. The company's strong moat is based on the wide reach of its sales channel into enterprises, its hybrid cloud offering, its positioning in the public cloud market, high barriers to entry, and high switching costs. We believe Microsoft can grow by double digits for the next five years.

Information Technology 5.2%

IHS Markit Ltd.

IHS Markit Ltd. (INFO) provides critical information, analytics, and expertise across the financial services, natural resources, and transportation markets.
IHS Markit provides mission critical information and deep domain expertise across a variety of end markets to a highly diversified customer base. We expect management to achieve its 5-7% organic revenue growth target through new product introductions, cross-selling to existing customers, and selective price increases. Margins should expand by leveraging fixed costs. The business generates significant free cash flow, which is being used for accretive acquisitions and share repurchases.

Industrials 4.9%

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 the revenue comes from international markets, where consumer spending and the adoption rate of electronic payments have been rising quickly. Margins should continue expanding due to operating leverage. The company generates significant free cash flow, which is being used 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.

Information Technology 4.9%

S&P Global Inc.

S&P Global Inc. (SPGI) is the world's largest credit rating agency. The company also provides benchmarks, analytics, and data to the financial and commodities markets.
S&P Global benefits from the secular growth of 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 meaningful pricing power. Margin expansion should continue due to operating leverage and efficiency initiatives. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends.

Financials 4.7%

Moody's Corporation

Moody's Corporation (MCO) is the second largest credit rating agency providing research, professional services, and risk management software for financial institutions.
Moody's benefits from the secular growth of bond issuance as debt levels rise with the global economy and bond markets continue gaining share from unrated bank debt. We think the data and analytics business will generate steady growth from new sales, product upgrades, and price increases. Further, we believe margins should continue expanding due to operating leverage and efficiency initiatives. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends.

Financials 4.6%

Constellation Brands, Inc.

Constellation Brands, Inc. (STZ) produces and markets alcoholic beverages across North America, Europe, and Australia. It  has one of the fastest growing alcohol brand portfolios, the result of savvy bets on Mexican import beer brands such as Corona and Grupo Modelo as well as craft brand Ballast Point.
Constellation's strong portfolio of leading brands has helped the company consistently outgrow its peers through brand extensions, product introductions, and selective addition of high-margin, niche brands. Constellation recently streamlined its business by shedding a low-margin wine division. We believe the company is well-positioned to benefit from potential legalization of recreational cannabis given its significant investment in Canopy Growth, the largest and most sophisticated cannabis producer in Canada.

Consumer Staples 4.3%

Danaher Corporation

Danaher Corp. (DHR) is a leading manufacturer in the life sciences, diagnostics, dental, and environmental markets.
Danaher attributes much of its operating and financial performance to the Danaher Business System (DBS), an operating philosophy that stresses continuous improvement, innovation, and customer service. Danaher is known for generating substantial cash flow to deploy into accretive acquisitions that will benefit from the application of its DBS. We believe Danaher's recent acquisition of GE's Bioproduction business should turn its overall business from a 4% to a 5-6% organic sales grower.

Health Care 4.2%

Apple, Inc.

Apple, Inc. (AAPL) designs, manufactures, and markets consumer electronics, computer software, and online services. Its products include the iPhone, iPad, Mac personal computer, Apple smartwatch, Apple TV, and HomePod.
As the creator and owner of one of the largest and most popular consumer electronics platforms, Apple, in our view, is well-positioned to benefit from the network effect that typically accrues to platform companies. It has a large and growing ecosystem, a trusted brand, and positive optionality due to its effort to push into additional consumer and enterprise services with its large install base. We believe Apple trades at a discount to the market and to our estimate of its intrinsic value, with capital return offsetting near-term uncertainty on trade and iPhone demand.

Information Technology 4.0%

Accenture plc

Accenture plc (ACN) is a consulting and technology services company that serves corporate clients around the world.
Accenture is a leading professional services company with a broad service offering, global footprint, and entrenched customer relationships. The company is gaining share by focusing on digital, cloud, and security-related services (referred to as "the New"), which comprise over 60% of revenue. 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 3.8%

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 3.3%

Total

43.9%

Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.

as of 09/30/19

Name Sector % of Net Assets

Microsoft Corporation

Information Technology 5.2%

Mastercard Incorporated

Information Technology 4.9%

IHS Markit Ltd.

Industrials 4.9%

S&P Global Inc.

Financials 4.7%

Moody's Corporation

Financials 4.6%

Constellation Brands, Inc. - Cl A

Consumer Staples 4.3%

Danaher Corporation

Health Care 4.2%

Apple, Inc.

Information Technology 4.0%

Accenture plc

Information Technology 3.8%

UnitedHealth Group Incorporated

Health Care 3.3%

Adobe, Inc.

Information Technology 3.0%

AstraZeneca PLC

Health Care 3.0%

Thermo Fisher Scientific Inc

Health Care 2.8%

Alexandria Real Estate Equities, Inc.

Real Estate 2.8%

IQVIA Holdings Inc.

Health Care 2.7%

BlackRock Inc.

Financials 2.6%

SS&C Technologies Holdings, Inc.

Information Technology 2.5%

Alphabet Inc. - Cl C

Communication Services 2.5%

TE Connectivity Ltd.

Information Technology 2.4%

CME Group, Inc. Cl - A

Financials 2.4%

LVMH Moët Hennessy Louis Vuitton SE

Consumer Discretionary 2.1%

Texas Instruments Incorporated

Information Technology 2.1%

Fidelity National Information Services, Inc.

Information Technology 2.0%

Charter Communications, Inc. - Cl - A

Communication Services 2.0%

Equinix, Inc.

Real Estate 2.0%

Mettler-Toledo International, Inc.

Health Care 1.8%

Costco Wholesale Corporation

Consumer Staples 1.8%

The Sherwin-Williams Company

Materials 1.7%

Agilent Technologies, Inc.

Health Care 1.7%

ASML Holding N.V.

Information Technology 1.7%

Electronic Arts Inc.

Communication Services 1.6%

The Estee Lauder Companies Inc.

Consumer Staples 1.5%

Booking Holdings Inc

Consumer Discretionary 1.3%

The Walt Disney Company

Communication Services 1.0%

Fastenal Co.

Industrials 0.9%

Illinois Tool Works Inc.

Industrials 0.8%

GICS SECTOR BREAKDOWN

As of 09/30/19

As of 09/30/19

Colors of Sub-Industry bars correspond to the GICS sector chart.

Contributors/Detractors

Quarterly as of 09/30/19

Top Contributors Average Weight Contribution
Apple, Inc. 3.58% 0.48%
Alphabet Inc. 3.35% 0.42%
ASML Holding N.V. 1.99% 0.37%
S&P Global Inc. 4.72% 0.34%
Equinix, Inc. 2.34% 0.32%

Quarterly as of 09/30/19

Top Detractors Average Weight Contribution
Mettler-Toledo International, Inc. 2.30% -0.45%
UnitedHealth Group Incorporated 4.38% -0.42%
LVMH Moet Hennessy Louis Vuitton SE 3.03% -0.20%
Iqvia Holdings Inc. 2.49% -0.20%
BlackRock Inc. 2.76% -0.15%

Source: FactSet PA.

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: The Fund invests primarily in equity securities, which are subject to price fluctuations in the stock market. In addition, because the Fund invests primarily in large-cap company securities, it may underperform other funds during periods when the Fund’s securities are out of favor.

The Fund may not achieve its objectives.

Definitions (provided by BAMCO, Inc.): The index is unmanaged. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The S&P 500 Index and the Fund are with dividends, which positively impact the performance results. Index performance is not fund performance. Investors cannot invest directly in 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.

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.