Baron Partners Fund (BPTRX)

Portfolio Management

Ron Baron

Fund Manager since 1992

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Fund Description

Baron Partners Fund invests in all-cap companies with significant growth opportunities.



Fund Resources

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Latest Fact Sheets

Standard Fact Sheet

Expanded Fact Sheet - Retail Shares

Expanded Fact Sheet - Institutional Shares

Attribution Analysis 2Q14
Attribution Analysis 2Q14

Portfolio Commentary

Retail Performance

Review and Outlook (for quarter ended 9/30/2014)

The Review and Outlook for period ending September 30, 2014 is not yet available

Top Contributors/Detractors to Performance

Contributors (for quarter ended 9/30/2014)
  • Mobileye N.V. is a software and systems design leader for camera-based advanced driver assistance systems (ADAS). The share price increased after we participated in Mobileye's IPO in the quarter. We believe the company has the potential to become a multi-decade leader in the race to autonomous driving, a trend that we believe will improve transportation safety and efficiencies.

  • Shares of brokerage firm The Charles Schwab Corp. increased in Q3. The company indicated at its biannual investor meeting that earnings should approach the high end of initial guidance. Additionally, the company announced plans to return more cash to shareholders through dividends and buybacks. We believe Schwab is well positioned from a regulatory standpoint and has less exposure to trading commissions than its peers. It has been experiencing consistent and sustained growth in accounts as brokers leave traditional wirehouses.

  • Shares of Vail Resorts, Inc., the largest ski resort operator in the U.S., increased in Q3 as the company resolved its litigation with the owners of Park City and bought the resort from them at what we believe is an attractive price. The resort gives Vail access to two adjacent resorts in Utah which, when combined, will make it the largest ski resort in the U.S. The company believes that by adding Park City to its season pass, it should be able to increase sales, which should help to insulate it from weather abnormalities.

Detractors (for quarter ended 9/30/2014)
  • Air Lease Corp. is an aircraft leasing company with a young, fuel-efficient fleet addressing demand for replacement of older aircraft and more lift in emerging markets, namely Asia. It has strong growth and predictable cash flows, as evidenced by a 23% rise in sales and 42% rise in earnings-per-share in Q2. Deliveries are 100% booked through 2015 and 50% placed for 2016. We believe the stock fell in Q3 due more to general market weakness than reported results, and that Air Lease is well positioned for a long "runway" of profitable growth.

  • Concho Resources, Inc., is an exploration and production (E&P) company focused on the Permian Basin in West Texas. Shares fell in Q3, in line with the decline in oil prices. Concho remains on track to deliver on its “three by two” plan, designed to double production in three years. Even at lower oil prices, we believe Concho has the wherewithal to deliver on the program. In addition, drilling results from Concho and other E&P companies in the region are pointing to the potential for significantly more value creation from Concho’s resource base.

  • Helmerich & Payne, Inc. is the leading land drilling contractor in the U.S. Shares fell in the quarter despite the fact that rising demand for its new rigs spurred clients to continue to add to the company’s record backlog of new rig contracts. The company’s fiscal third quarter earnings were a bit below expectations, which contributed to the stock weakness, but it appears that most of the weakness was related to concerns that lower oil prices would short-circuit the upturn in U.S. drilling.

Quarterly Attribution Analysis

This Fund does not have an Attribution Analysis for this time period.

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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. Investing in the stock market is always risky. Current and future portfolio holdings in the Fund are subject to risk.

Source: FactSet PA.