Baron Discovery Fund (BDFIX)

Invest In Baron Funds Today

Fund Description

Baron Discovery Fund invests primarily in small growth companies.
 

Fund Resources

Latest Fact Sheets

Standard Fact Sheet

2Q16 Quarterly Letter

Facts & Characteristics as of June 30, 2016

Inception Date September 30, 2013
Net Assets (All share classes combined) $31.40 million
# of Equity Securities / % of Net Assets 57/95.8%
Turnover (2 Year Average) 98.73%
Median Market Cap $1.11 billion
Weighted Average Market Cap $1.63 billion
CUSIP 068278852
Gross Expense Ratio (as of 09/15) 1.25%
Less: Reimbursement of Expenses by Adviser (as of 09/15) (0.15)%
Net Expense Ratio (as of 09/15) 1.10%
EPS Growth (3-5 year forecast) 17.0%
Price/Earnings Ratio (trailing 12-month) 33.3
Price/Book Ratio 3.1
Price/Sales Ratio 2.8

Top Ten Holdings as of August 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 4.8%
Mercury Computer Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software.
Industrials 4.7%
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 4.0%
Amber Road, Inc. (AMBR) is a SaaS-based software company that streamlines the processes behind the import and export of goods. The software is powered by a proprietary database that includes constantly updated information regarding shipping schedules, trade agreements, and tariffs from around the world.
Information Technology 3.5%
Gaming and Leisure Properties, Inc. (GLPI) holds all of the real property interests related to Penn National Gaming’s gaming operations and the Casino Queen in Illinois. It also has full ownership and operates Penn’s Baton Rouge and Maryland casinos. It should close soon on its Pinnacle acquisition.
Financials 3.5%
Education Realty Trust, Inc. (EDR) is the second largest U.S. student housing operator and owns a $2 billion national portfolio.
Financials 3.3%
Wingstop Inc. (WING) is a fast-growing franchisor of Wingstop chicken wing-centric fast-casual restaurants, with about 873 franchised locations and 19 company stores as of 1Q16.
Consumer Discretionary 2.9%
JUST EAT plc (je.ln) is the leading online/mobile restaurant delivery aggregator/platform in the U.K., Denmark, Ireland, France, Spain, Switzerland, Norway, Mexico, Italy, and Canada. The company generates a 10-13% commission on gross food sales ordered via its websites and mobile apps.
Information Technology 2.6%
ESCO Technologies, Inc. (ESE) operates in three segments: filtration/fluid control for commercial aerospace applications; RF Shielding and Test measures magnetic, electromagnetic, and acoustic energy; and Utility Solutions, providing high-end, intelligent diagnostic test solutions for electric utilities.
Industrials 2.5%
Kinsale Capital Group, Inc.
Financials 2.3%
Total 34.1%
Back to Top

Portfolio Holdings as of June 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
Mercury Systems, Inc. Industrials $0.995 5.6%
Press Ganey Holdings Inc Health Care $2.080 4.9%
Gaming and Leisure Properties, Inc. Financials $6.967 4.5%
Education Realty Trust, Inc. Financials $3.048 4.4%
PRINCIPAL CASH Cash & Cash Equivalents - 4.2%
MACOM Technology Solutions Holdings, Inc. Information Technology $1.761 4.2%
Wingstop, Inc. Consumer Discretionary $0.780 3.9%
Qualys, Inc. Information Technology $1.041 3.8%
Amber Road, Inc. Information Technology $0.203 3.1%
The KEYW Holding Corporation Industrials $0.396 2.7%
ESCO Technologies Inc. Industrials $1.028 2.4%
JUST EAT plc Information Technology $3.836 2.3%
Flotek Industries, Inc. Materials $0.711 2.1%
Envestnet, Inc. Information Technology $1.422 2.0%
Nord Anglia Education Inc. Consumer Discretionary $2.201 2.0%
Inogen, Inc. Health Care $0.998 1.9%
American Renal Associates Holdings, Inc. Health Care $0.894 1.8%
Isle of Capri Casinos, Inc. Consumer Discretionary $0.756 1.7%
TherapeuticsMD, Inc. Health Care $1.668 1.7%
Benefitfocus, Inc. Information Technology $1.120 1.6%
Cerus Corporation Health Care $0.635 1.6%
Glaukos Corporation Health Care $0.948 1.6%
Acxiom Corp. Information Technology $1.711 1.5%
Foundation Medicine, Inc. Health Care $0.646 1.5%
Easterly Government Properties Financials $0.651 1.5%
Coherent, Inc. Information Technology $2.230 1.4%
Novadaq Technologies Inc. Health Care $0.565 1.4%
Quotient Technology Inc. Information Technology $1.112 1.4%
Pinnacle Entertainment, Inc. Consumer Discretionary $0.677 1.4%
Domino's Pizza Group plc Consumer Discretionary $2.201 1.3%
Manchester United plc Consumer Discretionary $2.611 1.3%
The Spectranetics Corporation Health Care $0.801 1.3%
Nevro Corp Health Care $2.089 1.3%
Flexion Therapeutics Inc Health Care $0.405 1.3%
American Assets Trust, Inc. Financials $1.927 1.2%
DigitalGlobe, Inc. Industrials $1.347 1.2%
Pacira Pharmaceuticals, Inc. Health Care $1.254 1.2%
Varonis Systems, Inc. Information Technology $0.630 1.2%
Habit Restaurants, Inc. Consumer Discretionary $0.426 1.2%
Barfresh Food Group, Inc. - Physical Consumer Staples $0.061 1.2%
Mellanox Technologies Ltd. Information Technology $2.285 1.0%
Kennedy-Wilson Holdings, Inc. Financials $2.156 1.0%
HealthEquity, Inc. Health Care $1.765 1.0%
Sientra, Inc. Health Care $0.119 1.0%
TESARO, Inc. Health Care $3.859 1.0%
INC Research Holdings, Inc. Health Care $2.068 0.9%
Cepheid Health Care $2.241 0.8%
Neos Therapeutics, Inc. Health Care $0.149 0.8%
Party City Holdco Inc. Consumer Discretionary $1.660 0.7%
Kornit Digital Ltd. Industrials $0.297 0.6%
Sage Therapeutics, Inc. Health Care $0.966 0.6%
Qad Inc-B Information Technology $0.356 0.6%
RBC Bearings Incorporated Industrials $1.707 0.5%
Valero Energy Partners LP Energy $3.105 0.4%
comScore, Inc. Information Technology $1.353 0.3%
Zoe's Kitchen, Inc. Consumer Discretionary $0.704 0.3%
Rexford Industrial Realty, Inc. Financials $1.392 0.3%
Fiesta Restaurant Group, Inc. Consumer Discretionary $0.587 0.2%
Barfresh Food Group, Inc.-Series F Warrants Consumer Staples $0.061 0.2%
Total 100.0%
Back to Top

Sector Breakdown as of August 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
2.5%
Consumer Discretionary
  • Restaurants 5.9%
  • Casinos & Gaming 3.0%
  • Education Services 1.9%
  • Movies & Entertainment 1.2%
  • Specialty Stores 0.8%
12.7%
Consumer Staples
  • Packaged Foods & Meats 1.2%
1.3%
Financials
  • Specialized REITs 3.5%
  • Residential REITs 3.3%
  • Property & Casualty Insurance 2.3%
  • Office REITs 1.4%
  • Diversified REITs 1.2%
  • Real Estate Operating Companies 1.1%
  • Industrial REITs 0.3%
13.1%
Health Care
  • Health Care Equipment 7.3%
  • Biotechnology 6.3%
  • Health Care Supplies 4.8%
  • Pharmaceuticals 3.2%
  • Life Sciences Tools & Services 2.1%
  • Health Care Technology 1.5%
  • Managed Health Care 0.7%
25.9%
Industrials
  • Aerospace & Defense 8.0%
  • Industrial Machinery 3.6%
  • Trading Companies & Distributors 0.9%
12.5%
Information Technology
  • Internet Software & Services 11.4%
  • Semiconductors 7.4%
  • Systems Software 5.9%
  • IT Consulting & Other Services 1.7%
  • Electronic Equipment & Instruments 1.4%
  • Application Software 0.7%
28.5%
Materials
  • Specialty Chemicals 2.2%
  • Commodity Chemicals 1.3%
3.5%
Back to Top

Top Contributors & Detractors as of June 30, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Aerospace & Defense 6.72% 2.07%
Internet Software & Services 9.48% 1.84%
Health Care Services 3.24% 1.36%
Health Care Technology 4.30% 1.23%
Health Care Equipment 5.72% 1.07%
Top Detractors Average Weight Contribution
Semiconductors 6.35% -1.86%
Packaged Foods & Meats 1.57% -0.50%
Pharmaceuticals 4.04% -0.32%
Specialty Stores 0.87% -0.10%
Real Estate Services 0.59% -0.08%
By Holdings
Top Contributors Average Weight Contribution
Press Ganey Holdings, Inc. 4.30% 1.23%
Mercury Systems, Inc. 5.00% 1.06%
ExamWorks Group, Inc. 1.83% 0.94%
The KEYW Holding Corporation 2.12% 0.94%
Wingstop Inc. 4.27% 0.89%
Top Detractors Average Weight Contribution
MACOM Technology Solutions Holdings, Inc. 5.06% -1.54%
Pacira Pharmaceuticals, Inc. 1.89% -0.71%
Barfresh Food Group, Inc. 1.57% -0.50%
Mellanox Technologies Ltd. 1.29% -0.32%
The Habit Restaurants, Inc. 2.07% -0.26%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Electronic Manufacturing Services 3.15% 1.62%
Residential REITs 2.81% 1.43%
Health Care Technology 3.76% 1.16%
Casinos & Gaming 4.57% 1.00%
Aerospace & Defense 3.96% 0.72%
Top Detractors Average Weight Contribution
Biotechnology 3.75% -2.70%
Health Care Supplies 3.85% -2.66%
Systems Software 4.90% -2.30%
Pharmaceuticals 3.69% -2.01%
Building Products 1.36% -1.76%
By Holdings
Top Contributors Average Weight Contribution
Mercury Systems, Inc. 4.00% 2.49%
Education Realty Trust, Inc. 2.81% 1.43%
Press Ganey Holdings, Inc. 3.76% 1.16%
The KEYW Holding Corporation 1.33% 0.92%
Inogen, Inc. 1.40% 0.89%
Top Detractors Average Weight Contribution
Sientra, Inc. 0.74% -1.63%
Caesarstone Ltd. 1.03% -1.37%
Boot Barn Holdings, Inc. 0.58% -1.36%
Barracuda Networks, Inc. 0.36% -1.24%
ClubCorp Holdings, Inc. 0.89% -1.23%
Back to Top

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.