Baron Opportunity Fund (BIOIX)

Portfolio Management

Michael Lippert

Fund Manager since 2006

Objective and Strategy

The Fund invests primarily in high-growth businesses of any market capitalization benefiting from innovation through development of pioneering, transformative, or technologically advanced products and services. Diversified.

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Fund Description

Baron Opportunity Fund invests in innovative high-growth companies.



Performance Summary as of December 31, 2016

  Annualized Returns Since Inception
YTD 1 YR 3 YR 5 YR 10 YR Annualized Cumulative
-4.56% -4.56% -1.54% 8.47% 6.52% 4.38% 105.67%
Growth of $10,000 Chart

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Top Ten Holdings as of December 31, 2016

Holding Sector Percentage, Inc. Consumer Discretionary 7.6%
CoStar Group, Inc. Information Technology 6.1%
Alphabet Inc. Information Technology 5.9%
Gartner, Inc. Information Technology 5.6%
Guidewire Software, Inc. Information Technology 5.4%
Tesla Motors, Inc. Consumer Discretionary 4.4%
Acxiom Corporation Information Technology 4.0%
Netflix, Inc. Consumer Discretionary 3.3%
Benefitfocus, Inc. Information Technology 3.1%
Visa, Inc. Information Technology 3.0%
Total 48.4%
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Performance Based Characteristics as of December 31, 2016

Characteristics 3 Years 5 Years 10 Years
Standard Deviation (%) 16.64 15.59 20.25
Sharpe Ratio -0.10 0.54 0.29
Alpha (%) -10.20 -7.29 -2.47
Beta 1.22 1.19 1.18
R-Squared (%) 71.55 71.75 85.00
Tracking Error (%) 9.11 8.49 8.32
Information Ratio -1.08 -0.70 -0.21
Upside Capture (%) 102.38 103.18 113.87
Downside Capture (%) 185.55 162.60 128.62

Daily Price (NAV)

Prices for Jan 13 , 2017
NAV $15.36
Daily Change ($) $0.15
Daily Change (%) 0.99%
MTD 6.82%
YTD 6.82%
52-Week High $17.39
52-Week Low $13.22

Fund Facts

Inception Date February 29, 2000
Net Assets^ $194.13 million
CUSIP 068278886
Expense Ratio* 1.10%
Risk/Return Comparison
Risk Return Graph

Securities issued by small and medium sized companies may be thinly traded and may be more difficult to sell during market downturns. Companies propelled by innovation, including technology advances and new business models, may present the risk of rapid change and product obsolescence, and their success may be difficult to predict for the long term.  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.


Morningstar Ratings
Ratings based on risk-adjusted returns as of 12/31/2016
Category: US Fund Mid-Cap Growth
Overall 1 Stars out of 588 funds
3 Year 1 Stars out of 588 funds
5 Year 1 Stars out of 504 funds

The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.

Lipper Rankings
Rankings based on total returns as of 12/31/2016
Category: Multi-Cap Growth Funds
1 Year 566 out of 591 funds
3 Year 498 out of 513 funds
5 Year 422 out of 443 funds


Baron Category: All-Cap Growth
Large Value Large Core Large Growth Large
Mid Value Mid Core Mid Growth Mid
Small Value Small Core Small Growth Small
Value Core Growth  
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Performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund expenses and the Fund's transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted above. For performance information current to the most recent month end, click here.

The Fund may not achieve its objectives.

The Fund’s historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

Performance for the Institutional Shares prior to 5/29/2009 is based on the performance of the Retail Shares, which have a distribution fee. The Institutional Shares do not have a distribution fee. If the annual returns prior to 5/29/2009 did not reflect this fee, the returns would be higher.

^All share classes combined. As of most recent quarter end.

*As of fiscal year ended 9/30/2015 the expense ratio of the Fund’s Institutional Shares was 1.10%

Percentage based on net assets. Portfolio holdings may change over time.
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.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) © 2015 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Lipper Analytical Services, Inc. rankings and fund performance do not reflect sales charges and are based on total return, including reinvestment of dividends and capital gains for the stated periods.

Performance Based Characteristics are based on trailing five-year and since-inception periods. Performance statistics for additional periods will be provided on request. Source: FactSet SPAR.

Definitions (provided by BAMCO, Inc.): The indexes are unmanaged. The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe comprised of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market, the S&P 500 Index of 500 widely held large-cap U.S. companies and the Russell Midcap® Growth Index measures the performance of medium-sized U.S. companies that are classified as growth. The indexes and the Fund are with dividends, which positively impact the performance results. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Russell Investment Group. The Morningstar US OE Mid-Cap Growth Category Average is not weighted and represents the straight average of annualized returns of each of the funds in the Mid-Cap Growth category. The Fund’s Retail Shares have been included in the category since inception and the Fund’s Institutional Shares since 5/29/09.
 © 2015 Morningstar, Inc.  All Rights Reserved.  The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.  Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Standard Deviation: measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility (risk). Sharpe Ratio: is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better a fund’s risk adjusted performance. Alpha: measures the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. Beta: measures a fund’s sensitivity to market movements. The beta of the market (Russell Midcap Growth Index) is 1.00 by definition. R-Squared: measures how closely a fund’s performance correlates to the performance of the benchmark index (Russell Midcap Growth Index), and thus is a measurement of what portion of its performance can be explained by the performance of the index. Values for R-Squared range from 0 to 100, where 0 indicates no correlation and 100 indicates perfect correlation. Tracking Error: measures how closely a fund’s return follows the benchmark index returns (Russell Midcap Growth Index). It is calculated as the annualized standard deviation of the difference between the fund and the index returns. Information Ratio: measures the excess return of a fund divided by the amount of risk the fund takes relative to the benchmark index (Russell Midcap Growth Index). The higher the information ratio, the higher the excess return expected of the fund, given the amount of risk involved. Upside Capture: explains how well a fund performs in time periods where the benchmark’s returns (Russell Midcap Growth Index) are greater than zero. Downside Capture: explains how well a fund performs in time periods where the benchmark’s returns (Russell Midcap Growth Index) are less than zero. This information does not constitute an offer to sell or a solicitation of any offer to buy securities by anyone in any jurisdiction where it would be unlawful under the laws of that jurisdiction to make such offer or solicitation.