Baron Discovery Fund (BDFFX)

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Fund Description

Baron Discovery Fund invests primarily in small growth companies.
 

Fund Resources

Latest Fact Sheets

Standard Fact Sheet

3Q16 Quarterly Letter

Facts & Characteristics as of December 31, 2016

Inception Date September 30, 2013
Net Assets (All share classes combined) $70.57 million
# of Equity Securities / % of Net Assets 61 / 94.9%
Turnover (3 Year Average) 105.98%
Median Market Cap $1.13 billion
Weighted Average Market Cap $1.42 billion
CUSIP 068278860
Gross Expense Ratio (as of 09/15) 1.57%
Less: Reimbursement of Expenses by Adviser (as of 09/15) (0.22)%
Net Expense Ratio (as of 09/15) 1.35%
EPS Growth (3-5 year forecast) 19.5%
Price/Earnings Ratio (trailing 12-month) 31.3
Price/Book Ratio 3.4
Price/Sales Ratio 2.6

Top Ten Holdings as of December 31, 2016

Holding Sector Percentage*
MACOM Technology Solutions Holdings, Inc. (MTSI) is a high performance analog semiconductor company. It sells semiconductors, components, and subsystems to the communications (data transmission and data centers), aerospace/defense (radar, electronic warfare), and industrial (including medical) markets.
Information Technology 4.2%
Qualys, Inc. (QLYS) provides information technology security risk and compliance management solutions. The company offers cloud-based software products for vulnerability management, policy compliance, web application scanning, malware detection, and associated security products.
Information Technology 3.7%
Mercury Computer Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software.
Industrials 3.4%
JUST EAT plc (je.ln) is the leading online restaurant delivery aggregator in the U.K., Denmark, Ireland, France, Spain, Switzerland, Norway, Mexico, Italy, Brazil and Canada. The company generates a 10-13% commission on gross food sales ordered via its websites and mobile apps.
Information Technology 2.6%
Wingstop Inc. (WING) is a fast-growing franchisor of Wingstop fast-casual restaurants, with about 894 franchised locations and 20 company stores.
Consumer Discretionary 2.6%
Dominion Midstream Partners, L.P.
Energy 2.5%
Liberty Expedia Holdings, Inc.
Consumer Discretionary 2.5%
Varonis Systems, Inc.
Information Technology 2.4%
The Trade Desk
Information Technology 2.2%
Education Realty Trust, Inc. (EDR) is the second largest U.S. student housing operator, with a $2 billion nationwide portfolio.
Real Estate 2.1%
Total 28.2%
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Portfolio Holdings as of December 31, 2016

Holding Sector Market Cap ($Bn) Percentage*
PRINCIPAL CASH Cash & Cash Equivalents - 5.1%
MACOM Technology Solutions Holdings, Inc. Information Technology $2.484 4.2%
Qualys, Inc. Information Technology $1.130 3.7%
Mercury Systems, Inc. Industrials $1.240 3.4%
JUST EAT plc Information Technology $4.879 2.6%
Wingstop Inc. Consumer Discretionary $0.851 2.6%
Dominion Midstream Partners, L.P. Energy $2.755 2.5%
Liberty Expedia Holdings, Inc. Class A Consumer Discretionary $2.263 2.5%
Varonis Systems, Inc. Information Technology $0.715 2.4%
The Trade Desk Information Technology $1.067 2.2%
Education Realty Trust, Inc. Real Estate $3.091 2.1%
Envestnet, Inc. Information Technology $1.518 2.0%
Sientra, Inc. Health Care $0.158 2.0%
Pinnacle Entertainment, Inc. Consumer Discretionary $0.807 2.0%
Flexion Therapeutics Inc Health Care $0.592 2.0%
Myriad Genetics, Inc. Health Care $1.141 1.9%
Novadaq Technologies Inc. Health Care $0.407 1.9%
TherapeuticsMD, Inc. Health Care $1.134 1.9%
Glaukos Corporation Health Care $1.151 1.8%
Red Rock Resorts, Inc. Class A Consumer Discretionary $2.688 1.8%
Impinj, Inc. Information Technology $0.718 1.8%
Acxiom Corporation Information Technology $2.076 1.7%
Foundation Medicine, Inc. Health Care $0.621 1.7%
Nord Anglia Education Inc. Consumer Discretionary $2.426 1.7%
Cerus Corporation Health Care $0.450 1.7%
Nevro Corp. Health Care $2.090 1.7%
SiteOne Landscape Supply, Inc. Industrials $1.373 1.7%
Kinsale Capital Group, Inc. Financials $0.713 1.7%
The KEYW Holding Corporation Industrials $0.483 1.6%
Inogen, Inc. Health Care $1.361 1.5%
Rexford Industrial Realty, Inc. Real Estate $1.532 1.5%
DigitalGlobe, Inc. Industrials $1.783 1.4%
The Spectranetics Corporation Health Care $1.059 1.4%
Medpace Holdings, Inc. Health Care $1.469 1.4%
ESCO Technologies, Inc. Industrials $1.457 1.3%
Domino's Pizza Group plc Consumer Discretionary $2.297 1.3%
Flotek Industries, Inc. Materials $0.533 1.3%
Liberty Media Group - Cl A Consumer Discretionary $2.628 1.3%
QAD Inc. - Cl B Information Technology $0.562 1.3%
Coherent, Inc. Information Technology $3.373 1.2%
Amber Road, Inc. Information Technology $0.244 1.2%
BlackLine, Inc. Information Technology $1.417 1.2%
TrueCar Inc Information Technology $1.068 1.2%
MGP Ingredients, Inc. Consumer Staples $0.833 1.2%
Jones Energy Inc - a Energy $0.434 1.2%
Quotient Technology Inc. Information Technology $0.946 1.1%
Kornit Digital Ltd. Industrials $0.385 1.1%
Everspin Technologies, Inc. Information Technology $0.104 1.1%
Mellanox Technologies Ltd. Information Technology $1.994 1.0%
Sage Therapeutics, Inc. Health Care $1.898 1.0%
Ichor Holdings, Ltd. Information Technology $0.257 1.0%
Pacira Pharmaceuticals, Inc. Health Care $1.208 0.9%
Benefitfocus, Inc. Information Technology $0.884 0.9%
Barfresh Food Group, Inc. - Physical Consumer Staples $0.084 0.9%
Adamas Pharmaceuticals, Inc. Health Care $0.372 0.9%
TPI Composites, Inc. Industrials $0.541 0.7%
Neos Therapeutics, Inc. Health Care $0.094 0.6%
Zoe's Kitchen, Inc. Consumer Discretionary $0.467 0.5%
HealthEquity, Inc. Health Care $2.406 0.5%
Party City Holdco Inc. Consumer Discretionary $1.697 0.5%
Ultragenyx Pharmaceutical Inc. Health Care $2.873 0.3%
Manchester United plc Consumer Discretionary $2.337 0.1%
Barfresh Food Group, Inc.-Series F Warrants Consumer Staples $0.084 0.1%
Total 100.0%
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Sector Breakdown as of December 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
5.1%
Consumer Discretionary
  • Restaurants 4.3%
  • Casinos & Gaming 3.8%
  • Internet & Direct Marketing Retail 2.5%
  • Education Services 1.7%
  • Movies & Entertainment 1.4%
  • Specialty Stores 0.5%
14.1%
Consumer Staples
  • Distillers & Vintners 1.2%
  • Packaged Foods & Meats 1.0%
2.2%
Energy
  • Oil & Gas Storage & Transportation 2.5%
  • Oil & Gas Exploration & Production 1.2%
3.8%
Financials
  • Property & Casualty Insurance 1.7%
1.7%
Health Care
  • Biotechnology 7.9%
  • Health Care Equipment 6.8%
  • Health Care Supplies 5.2%
  • Pharmaceuticals 3.3%
  • Life Sciences Tools & Services 1.4%
  • Managed Health Care 0.5%
25.1%
Industrials
  • Aerospace & Defense 6.3%
  • Industrial Machinery 2.5%
  • Trading Companies & Distributors 1.7%
  • Heavy Electrical Equipment 0.7%
11.2%
Information Technology
  • Internet Software & Services 11.3%
  • Semiconductors 8.1%
  • Systems Software 6.1%
  • Application Software 2.5%
  • IT Consulting & Other Services 1.7%
  • Electronic Equipment & Instruments 1.2%
  • Semiconductor Equipment 1.0%
31.9%
Materials
  • Specialty Chemicals 1.3%
1.3%
Real Estate
  • Residential REITs 2.1%
  • Industrial REITs 1.5%
3.6%
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Top Contributors & Detractors as of December 31, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Aerospace & Defense 7.48% 1.37%
Application Software 2.03% 0.93%
Property & Casualty Insurance 1.96% 0.84%
Industrial Machinery 3.13% 0.76%
Oil & Gas Storage & Transportation 1.97% 0.63%
Top Detractors Average Weight Contribution
Health Care Equipment 7.11% -1.30%
Systems Software 6.11% -0.97%
Health Care Supplies 5.27% -0.85%
Biotechnology 7.79% -0.71%
Specialty Chemicals 1.68% -0.71%
By Holdings
Top Contributors Average Weight Contribution
Mercury Systems, Inc. 4.07% 1.04%
Kinsale Capital Group, Inc. 1.96% 0.84%
BlackLine, Inc. 0.95% 0.68%
Dominion Midstream Partners, L.P. 1.80% 0.59%
ESCO Technologies, Inc. 1.78% 0.39%
Top Detractors Average Weight Contribution
Novadaq Technologies Inc. 1.88% -0.90%
Qualys, Inc. 3.91% -0.73%
Flotek Industries, Inc. 1.68% -0.71%
Cerus Corporation 1.66% -0.63%
Foundation Medicine, Inc. 1.88% -0.57%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Aerospace & Defense 6.25% 4.77%
Casinos & Gaming 4.14% 2.99%
Semiconductors 6.92% 2.83%
Health Care Services 2.01% 1.98%
Internet Software & Services 10.07% 1.81%
Top Detractors Average Weight Contribution
Pharmaceuticals 3.70% -3.07%
Leisure Facilities 0.12% -0.98%
Specialty Chemicals 1.34% -0.91%
Building Products 0.15% -0.66%
Thrifts & Mortgage Finance 0.12% -0.58%
By Holdings
Top Contributors Average Weight Contribution
Mercury Systems, Inc. 4.78% 3.08%
Pinnacle Entertainment, Inc. 2.79% 2.17%
Amber Road, Inc. 1.98% 1.95%
The KEYW Holding Corporation 1.90% 1.95%
Impinj, Inc. 0.69% 1.87%
Top Detractors Average Weight Contribution
Pacira Pharmaceuticals, Inc. 1.57% -1.94%
The Habit Restaurants, Inc. 1.36% -1.01%
ClubCorp Holdings, Inc. 0.12% -0.98%
Novadaq Technologies Inc. 1.59% -0.92%
Flotek Industries, Inc. 1.34% -0.91%
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Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

*Top Ten Holdings, Portfolio Holdings, and Sector Breakdown based on net assets. Positions smaller than 0.05% round to 0.0%. Portfolio holdings may change over time. As of 3/12/2014, Baron Discovery Fund no longer owns shares of Mandarin Oriental International.

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"), unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided "as is" with no warranties.

^The Adviser has reclassified/classified certain securities in or out of this Sub-Industry. Such reclassifications/classifications are not supported by S&P or MSCI.

Top Contributors & Detractors Source: FactSet PA.

One year turnover information to the most recent quarter and average market cap (unweighted) is available upon request.