Cliff Greenberg discusses Baron Small Cap Fund.
The investment goal of Baron Small Cap Fund is capital appreciation.
The Fund invests in small-sized U.S. companies with significant growth potential. Investments include fallen angels with strong long-term franchises that have disappointed investors, and special situations, where lack of investor awareness creates opportunities. We purchase companies with market capitalizations below $2.5 billion and may hold investments as they become larger. Diversified.
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.