Prices & Performance

Prices

as of 04/08/20

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$9.24 $0.24 2.67% 5.60% 5.60% -7.60%

Performance

 
 
NAV $9.24
Daily Change ($) $0.24
Daily Change (%) 2.67%
MTD 5.60%
QTD 5.60%
YTD -7.60%

as of 04/09/20

3 Years 5 Years 10 Years Since Inception

Portfolio Characteristics

 

Baron FinTech Fund

Holdings

as of 03/31/20

Open All Close All Holding Sector % of Net Assets

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 are 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 6.8%

Visa, Inc.

Visa, Inc. (V) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks.
Visa benefits from consumer spending growth and the secular shift from cash to electronic payments. We expect accelerating revenue growth in Europe as pricing for legacy Visa Europe is reset higher. Margins should continue expanding due to operating leverage. The company generates significant free cash flow, which is being returned to shareholders through dividends and share repurchases. We believe Visa enjoys high barriers to entry given its well established brand, ubiquitous merchant acceptance network, and extensive banking relationships.

Information Technology 6.4%

Fidelity National Information Services, Inc.

Fidelity National Information Services, Inc. (FIS) provides technology solutions for merchants, banks, and capital markets firms globally. The company provides software, services, and outsourcing solutions to banks and credit unions. It also enables merchants to accept electronic payments.
The company's 2019 merger with Worldpay will create a leading provider of technology and processing solutions across financial services and payments. The combination should sustainably accelerate organic revenue growth into the high single digits. Based on the track record of both companies' management teams, we believe initial synergy projections will prove conservative in terms of magnitude and timing, which should drive meaningful margin expansion and earnings growth.

Information Technology 6.2%

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 5.0%

Adyen N.V.

Information Technology 4.8%

EPAM Systems, Inc.

EPAM Systems, Inc. (EPAM) provides outsourced software development to business customers.
EPAM benefits from growing demand for IT services from businesses around the world. The company's competitive differentiation comes from its ability to hire and retain highly skilled, low-cost software engineers primarily in Eastern Europe and Russia. EPAM's strong technical capabilities and differentiated labor pool enable the company to work on higher-value client projects with better pricing power than peers. We believe EPAM will continue gaining share in a large, growing market by adding new clients and increasing wallet share within existing clients.

Information Technology 4.6%

Paypal Holdings, Inc.

Information Technology 4.5%

Endava plc

Endava plc (DAVA) provides outsourced software development to business customers.
Endava benefits from growing demand for IT services from businesses around the world. The company's competitive differentiation comes from its ability to hire and retain highly skilled, low-cost software engineers primarily in Eastern Europe. Endava's strong technical capabilities and differentiated labor pool enable the company to work on higher-value client projects with better pricing power than peers. We believe Endava will continue gaining share in a large, growing market by adding new clients and increasing wallet share with existing clients.

Information Technology 4.5%

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 4.3%

MSCI, Inc.

MSCI, Inc. (MSCI) provides investment decision support tools to global investment institutions.
We believe MSCI, the de-facto standard for measuring global market performance, is well-positioned to benefit from the continuing development of emerging markets, passive investing, and the growth of global financial assets. We believe the company's indexes remain the global standard for cross-border investing and will continue to be selected by institutions when issuing new mandates. Both the index and multi-asset portfolio and risk analytics products are mission critical and deeply embedded in its clients’ workflows.

Financials 4.2%

Total

51.3%

as of 03/31/20

Name Sector % of Net Assets

Mastercard Incorporated

Information Technology 6.8%

Visa, Inc.

Information Technology 6.4%

Fidelity National Information Services, Inc.

Information Technology 6.2%

S&P Global Inc.

Financials 5.0%

Adyen N.V.

Information Technology 4.8%

EPAM Systems, Inc.

Information Technology 4.6%

Endava plc -ADR

Information Technology 4.5%

PayPal Holdings, Inc.

Information Technology 4.5%

Moody's Corporation

Financials 4.3%

MSCI, Inc.

Financials 4.2%

Fair Isaac Corporation

Information Technology 3.6%

IHS Markit Ltd.

Industrials 3.5%

Global Payments Inc.

Information Technology 3.4%

TransUnion

Industrials 3.1%

Repay Holdings Corporation Cl - A

Information Technology 2.9%

Alibaba Group Holding Limited - ADR

Consumer Discretionary 2.5%

Intuit Inc.

Information Technology 2.4%

Kinsale Capital Group, Inc.

Financials 2.4%

Accenture plc

Information Technology 2.3%

Verisk Analytics, Inc.

Industrials 2.3%

CoStar Group, Inc.

Industrials 2.1%

MarketAxess Holdings Inc.

Financials 2.0%

Jack Henry & Associates, Inc.

Information Technology 1.9%

Guidewire Software, Inc.

Information Technology 1.7%

CME Group, Inc. Cl - A

Financials 1.6%

London Stock Exchange Group PLC

Financials 1.4%

Grid Dynamics Holdings, Inc.

Information Technology 1.3%

Houlihan Lokey, Inc.

Financials 1.3%

Network International Holdings Ltd.

Information Technology 1.0%

Ceridian HCM Holding Inc.

Information Technology 0.9%

FleetCor Technologies, Inc.

Information Technology 0.6%

Bill.com Holdings, Inc.

Information Technology 0.3%

I3 Verticals Inc.

Information Technology 0.2%

Tradeweb Markets Inc.

Financials 0.1%

GICS SECTOR BREAKDOWN

As of 03/31/20

As of 03/31/20

Insights & News

Documents

Prospectus 12/31/19
Summary Prospectus 12/31/19
SAI 12/31/19

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, FinTech Companies may be adversely impacted by government regulations, economic conditions and deterioration in credit markets. Companies in the information technology sector are subject to rapid changes in technology product cycles; rapid product obsolescence; government regulation; and increased competition, both domestically and internationally, including competition from foreign competitors with lower production costs. The IT services industry can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees, and the success of companies in the industry is subject to continued demand for IT services. 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 companies of all sizes, including 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 S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The FactSet Global Fintech IndexTM is an unmanaged and equal-weighted index that measures the equity market performance of companies engaged in Financial Technologies, primarily in the areas of software and consulting, data and analytics, digital payment processing, money transfer, and payment transaction-related hardware, across 30 developed and emerging markets. The Fund and the indexes include reinvestment of dividends. The indexes are unmanaged. The index performance is not fund performance; one cannot invest directly into an index.