Baron Fifth Avenue Growth Fund (BFTHX)

Portfolio Management

AlexUmansky
Alex Umansky

Fund Manager since 2011

View All Commentary by Alex

Fund Description

Baron Fifth Avenue Growth Fund invests in large growth companies.

    

Portfolio Commentary

Retail Performance

Review and Outlook (for quarter ended 12/31/2016)

The Review and Outlook for period ending December 31, 2016 is not yet available

Top Contributors/Detractors to Performance

Contributors (for quarter ended 12/31/2016)
  • Shares of brokerage business The Charles Schwab Corp. increased in Q4 on the potential of multiple interest rate increases into 2017, which will potentially improve the company’s earnings. Charles Schwab also reported solid asset growth reaching over $2.7 trillion. The business continued to shift to fee-based advice from trading activity, a move that we believe creates more stability and the potential for increased profitability.

  • First Republic Bank provides banking and wealth management services to affluent clients in metropolitan areas of the U.S. The stock grew in Q4 as it participated in the post-election rally for financial stocks and on expectations for faster economic growth and higher inflation. In addition, First Republic reported good financial results during Q4 with 18% loan growth and 24% deposit growth. We continue to own the stock because we believe the bank has an advantaged business model and a long runway for growth.

  • CME Group, Inc. operates the world’s largest and most diversified financial exchanges for trading derivatives. Shares increased in Q4 due to greater post-election trading activity with average daily volumes up 24%. CME is also benefiting from investor expectations for a more normalized interest rate environment and greater hedging activity. We continue to own the stock because we expect solid earnings growth from higher trading and clearing volumes.

Detractors (for quarter ended 12/31/2016)
  • This Fund does not have detractors to performance for period ending December 31, 2016

Quarterly Attribution Analysis (for quarter ended 12/31/2016)

The Quarterly Attribution Analysis for period ending December 31, 2016 is not yet available

Yearly Attribution Analysis (for year ended 12/31/2016)

The Yearly Attribution Analysis for period ending December 31, 2016 is not yet available

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The prospective performance of the companies discussed herein is based on our internal analysis and reflect our opinions only. We cannot promise future returns and our opinions are a reflection of our best judgement at the time of publication. Our views are not intended as recommendations or investment advice to any person and are subject to change at any time based on market and other conditions and Baron has no obligation to update them. I Investing in the stock market is always risky. Current and future portfolio holdings in the Fund are subject to risk.

Source: FactSet PA.