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Overview

Objective & Strategy

S

The Fund invests primarily in small-sized U.S. companies. It invests in a select number of high-growth businesses that tend to be in an early phase of their lifecycles. Diversified.

Fund Facts

2018 Baron Investment Conference

Fund Snapshot

As of Aug 23, 2019

NAV $19.14
Daily Change ($) -$0.45
Daily Change (%) -2.30%
YTD 12.00%
Inception Date 9/30/2013

Fund Highlights

Morningstar Rating

Overall (out of 583 Funds)

4 stars

Ratings based on risk-adjusted returns as of 06/30/2019
Category:US Fund Small Growth

Equity Style

Risk & Return1

Portfolio Management

Laird Bieger Portfolio Manager

years of exp 22

years at baron 19

Randolph Gwirtzman Portfolio Manager

years of exp 22

years at baron 17

1Source: FactSet SPAR.

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.

The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings. For the period ended 12/31/2018 the Baron Discovery Fund was awarded 5-star Morningstar Rating for the 3-year and 5-star for the 5-year. Morningstar 3-year star rating is based on risk adjusted returns with 583 funds in category; and 5-year star rating is based on risk adjusted returns with 516 funds in category.

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 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 2018. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.

Prices & Performance

Prices

as of 08/23/19

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$19.14 -$0.45 -2.30% -7.27% -7.45% 12.00%

Performance

 

as of 07/31/19

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QTD1 YTD1 1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BDFIX - Baron Discovery Fund - I -0.19% 20.77% 2.17% 20.78% 13.59% 15.18% 1.12% 1.10%
Russell 2000 Growth Index 0.98% 21.54% -1.22% 12.66% 10.21% 9.40%
S&P 500 Index 1.44% 20.24% 7.99% 13.36% 11.34% 12.59%

1Not annualized.

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

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 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.

as of 06/30/19

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QTD1 YTD1 1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BDFIX - Baron Discovery Fund - I 1.08% 21.01% 5.57% 24.04% 12.05% 15.46% 1.12% 1.10%
Russell 2000 Growth Index 2.75% 20.36% -0.49% 14.69% 8.63% 9.36%
S&P 500 Index 4.30% 18.54% 10.42% 14.19% 10.71% 12.51%

1Not annualized.

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

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted.

The 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 Fund 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 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.

1Not annualized.

Expense ratios are as of the fiscal year ended 9/30/2017

as of 07/31/19

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Year Baron Discovery Fund Russell 2000 Growth Index S&P 500 Index
2018 0.64% -9.31% -4.38%
2017 35.83% 22.17% 21.83%
2016 21.73% 11.32% 11.96%
2015 -14.53% -1.38% 1.38%
2014 13.80% 5.60% 13.69%
2013 16.70% 8.17% 10.51%

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 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.

1Not annualized.

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

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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 $0.000 $0.000 $0.000 $1.500 $1.500 $19.33 0.64%
11/27/2017 11/28/2017 11/29/2017 $0.038 $0.000 $0.000 $0.000 $0.038 $18.30 35.83%
06/27/2016 06/28/2016 06/29/2016 $0.000 $0.000 $0.000 $0.266 $0.266 $11.35 21.73%

Performance Characteristics

as of 06/30/19

3 Years 5 Years Since Inception
Standard Deviation (%) 20.02 19.71 19.50
Sharpe Ratio 1.13 0.57 0.76
Alpha (%) 7.57 3.25 5.51
Beta 1.07 1.04 1.06
R-Squared (%) 87.17 83.32 82.78
Tracking Error (%) 7.28 8.07 8.15
Information Ratio 1.28 0.42 0.75
Upside Capture (%) 125.34 110.37 117.30
Downside Capture (%) 97.01 98.54 95.87

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Discovery Fund's(BDFIX) benchmark Russell 2000 Growth Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

 
NAV $19.14
Daily Change ($) -$0.45
Daily Change (%) -2.30%
MTD -7.27%
QTD -7.45%
YTD 12.00%
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BDFIX - Baron Discovery Fund - I Russell 2000 Growth Index S&P 500 Index
QTD1 -0.19% 0.98% 1.44%
YTD1 20.77% 21.54% 20.24%
1 Year 2.17% -1.22% 7.99%
3 Years 20.78% 12.66% 13.36%
5 Years 13.59% 10.21% 11.34%
Since Inception 15.18% 9.40% 12.59%
Expense Ratio2 - Gross 1.12%
Expense Ratio2 - Net 1.10%

*As of 07/31/19

*Annualized as of 07/31/19

1Not annualized.

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

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 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.

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BDFIX - Baron Discovery Fund - I Russell 2000 Growth Index S&P 500 Index
QTD1 1.08% 2.75% 4.30%
YTD1 21.01% 20.36% 18.54%
1 Year 5.57% -0.49% 10.42%
3 Years 24.04% 14.69% 14.19%
5 Years 12.05% 8.63% 10.71%
Since Inception 15.46% 9.36% 12.51%
Expense Ratio2 - Gross 1.12%
Expense Ratio2 - Net 1.10%

*As of 06/30/19

*Annualized as of 07/31/19

1Not annualized.

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

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 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.

as of 06/30/19

3 Years 5 Years Since Inception
Standard Deviation (%) 20.02 19.71 19.50
Sharpe Ratio 1.13 0.57 0.76
Alpha (%) 7.57 3.25 5.51
Beta 1.07 1.04 1.06
R-Squared (%) 87.17 83.32 82.78
Tracking Error (%) 7.28 8.07 8.15
Information Ratio 1.28 0.42 0.75
Upside Capture (%) 125.34 110.37 117.30
Downside Capture (%) 97.01 98.54 95.87

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Discovery Fund's(BDFIX) benchmark Russell 2000 Growth Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

as of 07/31/19

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Year Baron Discovery Fund Russell 2000 Growth Index S&P 500 Index
2018 0.64% -9.31% -4.38%
2017 35.83% 22.17% 21.83%
2016 21.73% 11.32% 11.96%
2015 -14.53% -1.38% 1.38%
2014 13.80% 5.60% 13.69%
2013 16.70% 8.17% 10.51%

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund 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 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.

1Not annualized.

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

Select Year
Record Date 11/28/2018 11/27/2017 06/27/2016
Ex Date 11/29/2018 11/28/2017 06/28/2016
Payable Date 11/30/2018 11/29/2017 06/29/2016
Income $0.000 $0.038 $0.000
Return of Capital $0.000 $0.000 $0.000
Short-Term Capital Gain $0.000 $0.000 $0.000
Long-Term Capital Gain $1.500 $0.000 $0.266
Total $1.500 $0.038 $0.266
Re-Invest NAV $19.33 $18.30 $11.35
Calendar-Yr Return 0.64% 35.83% 21.73%

Portfolio Characteristics

 

as of 06/30/19

Baron Discovery Fund Russell 2000 Growth Index
Net Assets$558.66 million
# of Equity Securities / % of Net Assets67 / 93.8%
Turnover (3 Year Average)55.25%
Active Share94.3%
Median Market Cap$1.56 billion$0.94 billion
Weighted Average Market Cap$2.45 billion$2.51 billion
EPS Growth (3-5 year forecast)19.6%16.3%
Price/Earnings Ratio (trailing 12-month)33.722.6
Price/Book Ratio3.93.8
Price/Sales Ratio3.21.6
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 07/31/19

Open All Close All Holding Sector % of Net Assets

Mercury Systems, Inc.

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software. Its customers are tier-1 defense contractors worldwide.
We believe Mercury is uniquely positioned to sell high-speed computing and storage subsystems to nearly all large U.S. defense contractors. Its products, which allow customers to more rapidly and cheaply develop their own solutions, are used to acquire sensor data, digitize and process the data, and then deliver it for analysis and interpretation. We think at least $10 billion of internal tier-1 business can be outsourced in addition to the current market for outsourced defense electronics of about $2 to $2.5 billion, providing Mercury with a multi-year growth opportunity.

 Industrials 3.3%

Myriad Genetics, Inc.

Myriad Genetics, Inc. (MYGN) operates labs in Utah and Ohio. Its labs perform sophisticated hereditary genetic tests used for cancer prediction and treatment, compatibility with anti-depressant drugs, and visibility into inheritable genetic anomalies.
Myriad Genetics has superior tests in at least four categories. While it has lost market share in its breast and ovarian hereditary cancer testing business as a result of a 2013 court decision striking down its patents on the so-called BRCA genes, we believe Myriad Genetics will more than compensate with new products, including anti-depressant drug compatibility (2016 acquisition of Assurex) and inheritable genetic anomalies (2018 acquisition of Counsyl). We think high incremental profitability will result from leveraging its current sales force to sell new products.

 Health Care 3.0%

Americold Realty Trust

Americold Realty Trust (COLD) is the world’s largest owner of temperature-controlled warehouses. Americold’s warehouses enable “farm to fork” distribution and ensure freshness, safety, and convenience. The company’s market share is roughly 20% in the U.S. and 4.5% globally, serving over 2,600 customers.
Americold operates in a relatively stable industry, since food consumption is tied to population growth and cold storage is essential for food distribution. Its proprietary data systems are a competitive advantage, in our view. Management believes cash flow could grow by high single digits per year, an attractive rate compared with other REITs. Large acquisitions could also drive growth. We believe the company’s valuation is attractive, its growth prospects are solid, and it benefits from being in a less cyclical business.

 Real Estate 3.0%

ViewRay Incorporated

ViewRay Incorporated (VRAY) designs and manufactures equipment used in the radiation treatment of cancer. Its premier product, MRIdian, combines a linear accelerator (linac) with a low powered MRI machine, enabling real time, accurate, and faster radiation therapy.
MRgRT (magnetic resonance guided radiation therapy) has the ability to change the standard of care in cancer treatment by providing better outcomes with lower toxicity. There are 14,000 linacs installed worldwide as of 2018, of which only 27 are MRgRT. Each year, 1,000 linacs are sold, so we expect the base to grow to over 20,000 by 2035. If 20% of all systems sold are MRgRT, it represents a 280 machine opportunity that we think is particularly appealing given that there are currently only two players in the MRgRT market.

 Health Care 2.9%

Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. (KNSL) is a specialty insurance company. Kinsale focuses exclusively on the excess and surplus lines (E&S) market, which includes risks that are unique or hard to place in the standard insurance market.
We believe Kinsale is a well-run insurer that should grow book value per share much faster than peers. Its small size and low-cost technology platform give Kinsale the rare ability to achieve double-digit premium growth while delivering industry-leading underwriting margins. Management is highly regarded, has decades of experience in the E&S market, and previously ran a successful insurer that was sold at a premium valuation. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

 Financials 2.9%

RIB Software SE

RIB Software SE (RIB.GR) is a software company with a flagship application called iTWO. The application has 5D modeling capability enabling construction clients to manage a project from start to finish via one platform. The company is expanding its distribution channel via supply chain and cloud initiatives.
RIB's iTWO brings technology to the construction industry, which has underutilized technology to date. Whereas 13.4% of GDP is in global software, only 1% of construction spending is in software. iTWO uniquely combines 3D modeling with time and cost management, something that differentiates the product from its competitors. RIB has been expanding its distribution of iTWO technology via yTWO, its supply chain initiative, and mTWO, a cloud initiative in partnership with Microsoft.

 Information Technology 2.7%

SiteOne Landscape Supply, Inc.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in the U.S. Through its network of 477 branches in 44 states, the company offers a broad selection of products such as irrigation supplies, herbicides, landscape accessories, and outdoor lighting.
SiteOne is a market leader with exposure to residential and non-residential construction cycles. With under 10% of a large fragmented market, the company has significant opportunities to consolidate through accretive deals. The wholesale landscape market is growing faster than GDP, with consumers investing in their exteriors as extensions of their homes. In our view, SiteOne has an experienced management team with a strong M&A track record at larger public companies and a stock price that is valued at a discount to other dominant distributors, reflecting room for growth.

 Industrials 2.6%

Boyd Gaming Corporation

Boyd Gaming Corporation (BYD) is a gaming operator with 29 properties in Nevada, Pennsylvania, Illinois, Indiana, Iowa, Kansas, Louisiana, Ohio, Missouri, and Mississippi. The Las Vegas market (Locals and Downtown) contribute 35% of Boyd’s EBITDA while regional assets account for the rest.
The company has introduced several programs to lower its cost structure and improve its margins. These programs have resulted in margin improvement of 250 basis points in the past two years, and management believes there is potential for generating an additional 250 to 300 basis points. The company has also successfully refinanced $3 billion of debt and increased its cash flow, which we think will continue to grow with recently completed acquisitions. Management has indicated it will use the cash to increase dividends, repurchase stock, and pay down debt.

 Consumer Discretionary 2.5%

Veracyte, Inc.

Veracyte, Inc. (VCYT) is a leading genomic diagnostics company that allows physicians to make diagnosis and treatment decisions for thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis without expensive, invasive biopsy procedures.
Veracyte uses advanced genomic technology, clinical science, and machine learning in its tests, which are highly accurate and the leaders in every category. The company has around $2 billion of current available market opportunity, and has the potential to bring more tests to market based on its extensive genomic database.

 Health Care 2.4%

TPI Composites, Inc.

TPI Composites, Inc. (TPIC) is the only independent global manufacturer of composite wind blades for the wind energy market. The company provides wind blades to the industry's leading original equipment manufacturers, including GE Wind, Vestas, Siemens Gamesa, the Nordex Group, Senvion, and Enercon.
The wind industry is shifting to a predominantly outsourced wind blade manufacturing model to achieve more cost-effective production. We believe TPI is well-positioned to capitalize on this trend, as well as the growth trends of the wind industry. The company has long-term supply agreements with customers that provide contracted volumes allowing for significant revenue visibility. TPI plans to double its revenues to $2 billion by 2021 by continuing to sign new agreements and diversifying its revenue into transportation industry opportunities such as electric vehicles.

 Industrials 2.3%

Total

 27.6%

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

as of 06/30/19

Name Sector % of Net Assets

Mercury Systems, Inc.

 Industrials 3.2%

Americold Realty Trust

 Real Estate 2.9%

Kinsale Capital Group, Inc.

 Financials 2.9%

ViewRay Incorporated

 Health Care 2.9%

RIB Software SE

 Information Technology 2.7%

Myriad Genetics, Inc.

 Health Care 2.7%

SiteOne Landscape Supply, Inc.

 Industrials 2.5%

CareDx, Inc.

 Health Care 2.4%

Endava plc -ADR

 Information Technology 2.3%

Silk Road Medical, Inc.

 Health Care 2.3%

Veracyte, Inc.

 Health Care 2.3%

TPI Composites, Inc.

 Industrials 2.3%

Rexford Industrial Realty, Inc.

 Real Estate 2.2%

Floor & Decor Holdings, Inc.

 Consumer Discretionary 2.1%

The Trade Desk

 Information Technology 2.0%

Yext, Inc.

 Information Technology 2.0%

ForeScout Technologies, Inc.

 Information Technology 1.9%

Boyd Gaming Corporation

 Consumer Discretionary 1.9%

Trex Company, Inc.

 Industrials 1.8%

Cerus Corporation

 Health Care 1.8%

Cubic Corporation

 Industrials 1.8%

Helios Technologies, Inc.

 Industrials 1.7%

Emergent BioSolutions Inc.

 Health Care 1.7%

Kornit Digital Ltd.

 Industrials 1.7%

Esperion Therapeutics, Inc.

 Health Care 1.6%

Sientra, Inc.

 Health Care 1.6%

Teladoc Health Inc.

 Health Care 1.6%

Ichor Holdings, Ltd.

 Information Technology 1.5%

Red Rock Resorts, Inc. - Cl. A

 Consumer Discretionary 1.5%

TherapeuticsMD, Inc.

 Health Care 1.5%

Revance Therapeutics, Inc.

 Health Care 1.5%

Qualys, Inc.

 Information Technology 1.4%

Par Technology Corp/Del

 Information Technology 1.4%

ESCO Technologies, Inc.

 Industrials 1.3%

Liberty Media Corp. - Liberty Formula One Cl A

 Communication Services 1.2%

Limoneira Co

 Consumer Staples 1.2%

Nova Measuring Instruments Ltd.

 Information Technology 1.2%

Thunder Bridge Acquisition, Ltd.

 Unclassified 1.1%

Accelerate Diagnostics Inc

 Health Care 1.1%

Bloom Energy Corporation

 Industrials 1.1%

Luxfer Holdings PLC

 Industrials 1.1%

Novanta Inc.

 Information Technology 1.1%

Sage Therapeutics, Inc.

 Health Care 1.0%

The RealReal, Inc.

 Consumer Discretionary 1.0%

Blue Prism Group plc

 Information Technology 1.0%

Fiverr International Ltd.

 Consumer Discretionary 0.9%

LiveRamp Holdings, Inc.

 Information Technology 0.9%

AxoGen, Inc.

 Health Care 0.9%

Aerie Pharmaceuticals, Inc.

 Health Care 0.9%

Intersect ENT, Inc.

 Health Care 0.8%

Alexander & Baldwin, Inc.

 Real Estate 0.8%

Wingstop Inc.

 Consumer Discretionary 0.8%

2U, Inc.

 Information Technology 0.7%

Everspin Technologies, Inc.

 Information Technology 0.7%

GCI lLiberty, Inc.-Cl - A

 Communication Services 0.7%

Varonis Systems, Inc.

 Information Technology 0.6%

Envestnet, Inc.

 Information Technology 0.6%

JUST EAT plc

 Consumer Discretionary 0.5%

Anaplan, Inc.

 Information Technology 0.5%

Studio City International Holdings Limited - ADR Cl - A

 Consumer Discretionary 0.5%

Raven Industries Inc

 Industrials 0.4%

Inspire Medical Systems, Inc.

 Health Care 0.4%

Revolve Group LLC - Class a

 Consumer Discretionary 0.3%

Myovant Sciences Ltd.

 Health Care 0.3%

Ra Medical Systems, Inc.

 Health Care 0.3%

Coherent, Inc.

 Information Technology 0.2%

Barfresh Food Group, Inc.

 Consumer Staples 0.1%

Barfresh Food Group, Inc. Restricted

 Consumer Staples 0.0%

GICS SECTOR BREAKDOWN

As of 07/31/19

As of 07/31/19

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

Contributors/Detractors

Quarterly as of 06/30/19

Top Contributors Average Weight Contribution
Endava plc 1.98% 0.82%
Kinsale Capital Group, Inc. 2.70% 0.78%
Silk Road Medical, Inc. 1.87% 0.75%
RIB Software SE 2.65% 0.61%
SiteOne Landscape Supply, Inc. 2.59% 0.55%

Quarterly as of 06/30/19

Top Detractors Average Weight Contribution
TherapeuticsMD, Inc. 1.79% -1.10%
2U, Inc. 1.32% -1.03%
Sientra, Inc. 2.00% -0.69%
Intersect ENT, Inc. 1.42% -0.57%
Myriad Genetics, Inc. 2.76% -0.50%

Source: FactSet PA.

Insights & News

  • Baron Discovery Fund Named in Morningstar’s Prospects That Are “Worth a Look”

    03/27/19

    Baron Discovery Fund, co-managed by Randy Gwirtzman and Laird Bieger, was highlighted in Morningstar’s FundInvestor as an “intriguing, open small-cap option” among the most recent list of Morningstar Prospects. Download a free copy of FundInvestor by visiting the website.

  • Randy Gwirtzman Appears on CNBC's "Squawk Box"

    10/12/18

    On October 12, Randy Gwirtzman, co-portfolio manager of Baron Discovery Fund, appeared on CNBC’s “Squawk Box” program to discuss his thoughts on the current investment landscape. To view the full segment, visit www.cnbc.com.

  • Investor's Business Daily Highlights Baron Discovery Fund

    09/10/18

    In the September 10 edition of "Best Mutual Funds Special Report 2018," Investor's Business Daily highlighted Baron Discovery Fund, quoting Randy Gwirtzman and Laird Bieger and discussing some of their stock picks. To read the full article, visit www.investors.com.

  • Randy Gwirtzman Appears on CNBC’s "Worldwide Exchange"

    08/20/18

    On August 20, 2018, Baron Discovery Fund Portfolio Manager Randy Gwirtzman appeared on CNBC’s “Worldwide Exchange” program featuring "America's top-performing fund managers." Gwirtzman discussed his investment strategy, several of Baron Discovery Fund’s holdings, and his outlook on capital markets. View the full interview, "Small-cap Fund Manager Posting Big Returns,” at www.cnbc.com.

  • Randy Gwirtzman Quoted by The Wall Street Journal in Article on Small Cap Stock Rally

    05/17/18

    In the May 17th, 2018 issue of The Wall Street Journal, Randy Gwirtzman, co-portfolio manager of Baron Discovery Fund, offered his thoughts on the current investment environment as it relates to the rally in small cap stocks. You can read the full article, "Small Stocks Speed Past Large Caps," at www.wsj.com. (Subscription required to access).

  • Randy Gwirtzman on CNBC's "Squawk Box"

    11/02/17

    Randy Gwirtzman, co-portfolio manager of Baron Discovery Fund, appeared on the November 2, 2017 segment of CNBC’s “Squawk Box” program to discuss some of his top stock picks, including a high-end robotics company.  Watch a clip from the segment at www.cnbc.com.

  • Randy Gwirtzman appears on CNBC's "Squawk Box"

    10/05/17

    Randy Gwirtzman, co-portfolio manager of Baron Discovery Fund, appeared on the October 5, 2017 segment of CNBC’s “Squawk Box” program in a discussion on how he finds opportunities in the markets as stocks reach record levels. View a clip from the segment on www.cnbc.com.

  • Randy Gwirtzman appears on CNBC's "Squawk Box"

    08/28/17

    Randy Gwirtzman, co-portfolio manager of Baron Discovery Fund, appeared on the August 28, 2017 segment of CNBC's "Squawk Box" program in a discussion on the likely impact of Hurricane Harvey on gasoline and oil prices. View a clip from the segment at www.cnbc.com.

  • Reuters Quotes Laird Bieger on Opportunities Created by the Decline in Sell-side Research

    08/08/17

    A Reuters article on August 7, 2017 quoted Baron Discovery Fund Portfolio Manager Laird Bieger on how the dwindling numbers of sell-side researchers open the door to research-driven, actively managed firms to discover overlooked and potentially undervalued stocks. Bieger gave Impinj Inc (PI), a maker of radio frequency identification devices with a $1 billion market cap, as an example. He met with company management when there were no sell-side analysts covering the firm, and invested in it. Five analysts now cover the company, whose shares are up significantly year-to-date. Read the article ("Funds target 'unknown' stocks as Wall Street cuts analyst jobs," by David Randall) at www.reuters.com.

     

    Portfolio holdings may change over time. Current and future portfolio holdings are subject to risk.
    Portfolio holdings as a percentage of net assets as of June 30, 2017 for securities mentioned are as follows: Impinj Inc. (PI) – Baron Discovery Fund (1.2%)

  • Barron's Interviews Randy Gwirtzman and Laird Bieger on Baron Discovery Fund

    08/02/17

    Barron's homepage today features a Q&A interview with co-portfolio managers Randy Gwirtzman and Laird Bieger, who discussed Baron Discovery Fund and some of their favorite companies. "You haven't heard of them yet, but you will," Gwirtzman said about the portfolio stocks. Read the article at www.barrons.com. (Subscription required to access).

Documents

Summary Prospectus 01/28/19
Prospectus 01/28/19
SAI 01/28/19
Fact Sheet 06/30/19
Baron Investment Funds Trust Semi-Annual Financial Report 03/31/19
Baron Investment Funds Trust Annual Financial Report 09/30/18
XBRL Filings 06/07/18

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. 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.

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.

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Disclosure

Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA).

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