Prices & Performance

Prices

as of 02/20/19

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$10.24 $0.00 0.00% 3.33% 10.82% 10.82%

Performance

 

as of 01/31/19

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QTD1 YTD1 1 Year Since Inception Expense Ratio2
Gross Net
BDAIX - Baron Durable Advantage Fund - I 7.25% 7.25% -6.27% -0.51% 5.71% 0.70%
S&P 500 Index 8.01% 8.01% -2.31% 3.02%

1Not annualized.

2Expense ratios are estimated for the current fiscal year.

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 12/31/18

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1 Year Since Inception Expense Ratio2
Gross Net
BDAIX - Baron Durable Advantage Fund - I -7.28% -7.28% 1.61% 0.70%
S&P 500 Index -4.38% -4.38%

1Not annualized.

2Expense ratios are estimated for the current fiscal year.

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 01/31/19

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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.

Expense ratios are estimated for the current fiscal year.

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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
11/28/2018 11/29/2018 11/30/2018 $0.035 $0.000 $0.000 $0.000 $0.035 $9.91
 
NAV $10.24
Daily Change ($) $0.00
Daily Change (%) 0.00%
MTD 3.33%
QTD 10.82%
YTD 10.82%
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BDAIX - Baron Durable Advantage Fund - I S&P 500 Index
QTD1 7.25% 8.01%
YTD1 7.25% 8.01%
1 Year -6.27% -2.31%
Since Inception -0.51% 3.02%
Expense Ratio2 - Gross 5.71%
Expense Ratio2 - Net 0.70%

*As of 01/31/19

*Annualized as of 01/31/19

1Not annualized.

2Expense ratios are estimated for the current fiscal year.

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.

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BDAIX - Baron Durable Advantage Fund - I S&P 500 Index
1 Year -7.28% -4.38%
Since Inception -7.28% -4.38%
Expense Ratio2 - Gross 1.61%
Expense Ratio2 - Net 0.70%

*As of 12/31/18

*Annualized as of 01/31/19

1Not annualized.

2Expense ratios are estimated for the current fiscal year.

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 02/21/19

3 Years 5 Years 10 Years Since Inception

as of 01/31/19

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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.

Expense ratios are estimated for the current fiscal year.

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

Portfolio Characteristics

 

as of 12/31/18

Baron Durable Advantage Fund S&P 500 Index
Net Assets$3.52 million
# of Equity Securities / % of Net Assets37 / 94.0%
Turnover (1 Year)8.38%
Active Share81.5%
Median Market Cap$62.33 billion$18.50 billion
Weighted Average Market Cap$178.27 billion$200.91 billion
EPS Growth (3-5 year forecast)12.0%12.9%
Price/Sales Ratio3.01.9
Price/Earnings Ratio (trailing 12-month)20.716.2
Price/Book Ratio4.02.6
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 01/31/19

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 5.3%

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 cloud business to a run rate of over $20bn. 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 about 20% of its revenues and growing at a 50% 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 5.0%

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. A majority of the business 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 returned to shareholders. We believe Mastercard enjoys high barriers to entry given its well-established brand, ubiquitous merchant acceptance network, and extensive banking relationships.

Information Technology 4.9%

Alphabet Inc.

Alphabet Inc. (GOOG) (formerly Google Inc.) is the world's most recognized and dominant online search provider, as well as the owner and operator of YouTube. The company provides a variety of services and tools for advertisers, primarily for search and display advertising.
Alphabet is the largest beneficiary of a secular shift of advertising from all other mediums to online and mobile. Data is becoming increasingly important, and Alphabet has processed and indexed more data than any other company. Alphabet's leadership position in artificial intelligence allows it to leverage its large data sets to quickly improve its products, and subsidiary Waymo provides entry into autonomous driving. We believe Alphabet has the greatest collection of engineering talent of any company we cover, which should allow it to grow and innovate for years to come.

Communication Services 4.4%

S&P Global Inc.

S&P Global Inc. (SPGI) is the 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 4.2%

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.

Health Care 4.2%

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 global economic growth and bond markets continue gaining share from 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 cost synergies from the recent Bureau van Dijk acquisition. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends.

Financials 4.1%

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 is, in our view, 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.

Information Technology 3.9%

CME Group, Inc.

CME Group, Inc. (CME) is the world's largest and most diversified derivatives marketplace. Its exchanges support trading of futures and options across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, currencies, and metals.
CME should benefit as higher volatility and rising interest rates lead to higher trading volumes. New capital requirements for banks favor trading of CME's centrally-cleared futures over non-cleared, OTC financial products. We anticipate margin expansion as a result of operating leverage and efficiency initiatives. The company's deep liquidity pools, vertical integration into post-trade clearing, and cross-margining benefits for customers represent high barriers to entry. CME produces significant free cash flow that is being returned to shareholders.

Financials 3.8%

BlackRock Inc.

BlackRock Inc. (BLK) is the largest global asset management firm, with over $6 trillion in assets. BlackRock came to dominate the asset management industry through key acquisitions of product and distribution. It is best known for its iShare ETFs, and its products cover nearly all categories and geographies.
We think BlackRock will gain assets as the estimated $70 trillion of idle cash is invested in global markets and advisors shift to passive style investments. Its technology solutions can help with allocation of assets among extensive options, and iShare will be a key building block, in our view. We expect BlackRock to supplement its passive index products with factor-based custom indexes and alternative portfolios with higher fees and profitability. We also think it will expand its geographic reach as countries shift to an open architecture structure.

Financials 3.5%

Total

43.3%

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

as of 12/31/18

Name Sector % of Net Assets

UnitedHealth Group Incorporated

Health Care 5.2%

Microsoft Corporation

Information Technology 5.1%

Mastercard Incorporated

Information Technology 4.7%

Alphabet Inc. - Cl C

Communication Services 4.3%

CME Group, Inc. Cl - A

Financials 4.1%

Danaher Corporation

Health Care 4.0%

S&P Global Inc.

Financials 4.0%

Apple, Inc.

Information Technology 3.9%

Moody’s Corporation

Financials 3.8%

BlackRock Inc.

Financials 3.3%

LVMH Moët Hennessy Louis Vuitton SE

Consumer Discretionary 3.2%

TE Connectivity Ltd.

Information Technology 3.1%

Electronic Arts Inc.

Communication Services 2.7%

Home Depot, Inc.

Consumer Discretionary 2.6%

Accenture plc

Information Technology 2.4%

Agilent Technologies, Inc.

Health Care 2.4%

Mettler-Toledo International, Inc.

Health Care 2.4%

Equinix, Inc.

Real Estate 2.3%

Charter Communications, Inc. - Cl - A

Communication Services 2.3%

Constellation Brands, Inc. - Cl A

Consumer Staples 2.3%

Booking Holdings Inc

Consumer Discretionary 2.2%

IHS Markit Ltd.

Industrials 2.2%

ASML Holding N.V.

Information Technology 2.0%

AbbVie Inc.

Health Care 2.0%

ACTIVISION BLIZZARD INC COM

Communication Services 2.0%

The Sherwin-Williams Company

Materials 1.8%

Illinois Tool Works Inc.

Industrials 1.7%

Costco Wholesale Corporation

Consumer Staples 1.6%

Taiwan Semiconductor Manufacturing Company Ltd. - ADR

Information Technology 1.5%

AstraZeneca PLC

Health Care 1.5%

KEYENCE CORPORATION

Information Technology 1.4%

Fastenal Co.

Industrials 1.4%

The Estée Lauder Companies Inc.

Consumer Staples 1.4%

Biogen, Inc.

Health Care 1.2%

A.O. Smith Corporation

Industrials 1.0%

Texas Instruments Incorporated

Information Technology 1.0%

Elanco Animal Health Incorporated

Health Care 0.0%

GICS SECTOR BREAKDOWN

As of 01/31/19

As of 01/31/19

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

Contributors/Detractors

Quarterly as of 12/31/18

Top Contributors Average Weight Contribution
CME Group, Inc. 3.85% 0.36%

Quarterly as of 12/31/18

Top Detractors Average Weight Contribution
Apple, Inc. 3.87% -1.30%
Activision Blizzard, Inc. 2.34% -1.27%
Electronic Arts Inc. 2.92% -1.19%
Constellation Brands, Inc. 2.68% -0.76%
Mastercard Incorporated 4.52% -0.70%

Source: FactSet PA.

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.