Baron Real Estate Fund (BREFX)

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Fund Description

Baron Real Estate Fund invests in securities of real estate and real estate related companies of all sizes.

  

Facts & Characteristics as of March 31, 2016

Inception Date December 31, 2009
Net Assets (All share classes combined as of 6/30/2016) $1.26 billion
# of Equity Securities / % of Net Assets 37/99.1%
Turnover (3 Year Average) 38.82%
Median Market Cap $10.26 billion
Weighted Average Market Cap $20.36 billion
CUSIP 06828M702
Expense Ratio (as of FYE 12/14) 1.32%
EPS Growth (3-5 year forecast) 11.9%
Price/Earnings Ratio (trailing 12-month) 23.2
Price/Book Ratio 2.5
Price/Sales Ratio 2.2

Top Ten Holdings as of July 31, 2016

Holding Sector Percentage*
Mohawk Industries, Inc. (MHK) is the largest player in the $18 billion U.S. flooring industry, with 22% share. Flooring categories include carpets, rugs/mats, ceramic, stone, countertops, and laminate/hardwood.
Consumer Discretionary 6.1%
MGM Resorts International (MGM) is a casino hospitality company with properties in Macau, Las Vegas, and regionally across the U.S.  85% of its EBITDA is in the U.S., while 15% is from Macau.  The company owns a 73% stake in MGM Growth Properties, a gaming REIT and a 51% stake in MGM China.
Consumer Discretionary 6.1%
InterXion Holding N.V. (INXN) is a European provider of cloud and carrier-neutral colocation data center services. It has 41 data centers across 11 countries (13 cities) in Europe, over 100,000 square meters of equipped space (78% utilized), and 1,500 customers.
Information Technology 5.7%
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 5.4%
CBRE Group, Inc. (CBG) is a leading commercial real estate services company with the number one market share in all of its major businesses.
Financials 4.9%
American Tower Corp. (AMT) is the largest independent wireless tower operator worldwide, with approximately 150,000 towers in the U.S., Africa, and Latin America, plus India pro forma for the Viom transaction (expected to close Q2 2016).
Financials 4.2%
Macquarie Infrastructure Corp (MIC) owns a diversified group of infrastructure assets in the U.S.including: IMTT (bulk liquid storage for petroleum & chemicals), Atlantic Aviation (69 airport operators), Hawaii Gas (regulated gas utility), and Contracted Power & Energy (renewable power generation).
Industrials 4.2%
MGM Growth Properties (MGP) is a newly formed triple net REIT that currently holds 11 MGM assets (7 in Vegas, 4 regional gaming). The triple net REIT vehicle allows MGM to monetize its real estate assets and take advantage of the valuation disparity of the assets being held in the operating company.
Financials 3.6%
Norwegian Cruise Line Holdings, Ltd. (NCLH) is a global cruise line operator with itineraries in North American, the Mediterranean, the Baltic, Central America, Bermuda, and the Caribbean. It is the smallest of the three big cruise lines, with 23 ships.
Consumer Discretionary 3.5%
Simon Property Group, Inc. (SPG) is the largest U.S. REIT, with a $95 billion portfolio consisting of malls (65%), outlets (30%), and community centers (5%).
Financials 3.3%
Total 47.0%
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Portfolio Holdings as of June 30, 2016

Holding Sector Market Cap ($Bn) Percentage*
MGM Resorts International Consumer Discretionary $12.789 6.1%
Mohawk Industries, Inc. Consumer Discretionary $14.060 5.6%
Interxion Holding Nv Information Technology $2.587 5.4%
Gaming and Leisure Properties, Inc. Financials $6.967 5.2%
CBRE Group, Inc. Financials $8.882 5.1%
American Tower Corp. Financials $48.242 4.1%
Equinix, Inc. Financials $26.920 4.0%
Macquarie Infrastructure Company Trust Industrials $5.949 4.0%
MGM Growth Properties LLC Financials $5.752 3.9%
Hilton Worldwide Holdings, Inc. Consumer Discretionary $22.300 3.6%
Simon Property Group, Inc. Financials $67.113 3.5%
Norwegian Cruise Line Holdings, Ltd. Consumer Discretionary $9.044 3.3%
American Campus Communities, Inc. Financials $6.897 3.2%
Digital Realty Trust, Inc. Financials $17.365 3.2%
Masonite International Corp. Industrials $2.004 3.0%
Brookfield Asset Management, Inc. Financials $32.548 2.8%
Douglas Emmett, Inc. Financials $5.250 2.8%
Kennedy-Wilson Holdings, Inc. Financials $2.156 2.8%
Brookdale Senior Living, Inc. Health Care $2.869 2.7%
General Growth Properties, Inc. Financials $26.337 2.7%
Toll Brothers, Inc. Consumer Discretionary $4.463 2.6%
Jones Lang LaSalle, Inc. Financials $4.397 2.6%
Home Depot, Inc. Consumer Discretionary $158.847 2.5%
Lowe's Companies, Inc. Consumer Discretionary $70.153 2.4%
Martin Marietta Materials Inc. Materials $12.197 2.3%
Alexandria Real Estate Equities, Inc. Financials $7.648 2.0%
Royal Caribbean Cruises Ltd. Consumer Discretionary $14.454 1.7%
PRINCIPAL CASH Cash & Cash Equivalents - 1.5%
SBA Communications Corp. Telecommunication Services $13.549 1.2%
Sarana Menara Nusantara Tbk PT Telecommunication Services $3.282 1.2%
Boston Properties, Inc. Financials $20.261 1.1%
Aena SA Industrials $19.684 0.8%
Kennedy Wilson Europe Real Estate PLC Financials $1.739 0.6%
Armstrong World Industries, Inc. Industrials $2.172 0.5%
Total 100.0%
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Sector Breakdown as of July 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
1.8%
Consumer Discretionary
  • Hotels, Resorts & Cruise Lines 8.4%
  • Home Furnishings 6.1%
  • Casinos & Gaming 6.1%
  • Home Improvement Retail 5.0%
  • Homebuilding 2.5%
28.2%
Financials
  • Specialized REITs^ 17.4%
  • Real Estate Services 9.9%
  • Retail REITs 6.1%
  • Office REITs^ 3.8%
  • Hotel & Resort REITs 3.6%
  • Asset Management & Custody Banks 2.9%
  • Residential REITs 2.8%
46.5%
Health Care
  • Health Care Facilities 3.0%
3.0%
Industrials
  • Airport Services 5.0%
  • Building Products 3.8%
8.8%
Information Technology
  • IT Consulting & Other Services 5.7%
5.7%
Materials
  • Construction Materials 3.6%
3.6%
Telecommunication Services
  • Integrated Telecommunication Services 1.3%
  • Wireless Telecommunication Services 1.2%
2.4%
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Top Contributors & Detractors as of June 30, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 15.55% 2.39%
Hotel & Resort Reits 2.58% 0.74%
Office REITs^ 4.77% 0.54%
Construction Materials 2.55% 0.46%
Airport Services 4.62% 0.43%
Top Detractors Average Weight Contribution
Hotels, Resorts & Cruise Lines 10.66% -1.85%
Real Estate Services 11.63% -1.49%
Real Estate Operating Companies^ 1.15% -0.32%
Homebuilding 2.60% -0.24%
Diversified Real Estate Activities 2.70% -0.10%
By Holdings
Top Contributors Average Weight Contribution
MGM Growth Properties LLC 2.58% 0.74%
Digital Realty Trust, Inc. 2.60% 0.61%
Equinix, Inc. 3.53% 0.60%
Gaming and Leisure Properties, Inc. 4.32% 0.51%
Martin Marietta Materials, Inc. 2.55% 0.46%
Top Detractors Average Weight Contribution
Norwegian Cruise Line Holdings, Ltd. 3.54% -1.14%
Jones Lang LaSalle, Inc. 3.34% -0.59%
CBRE Group, Inc. 5.35% -0.52%
Royal Caribbean Cruises Ltd. 2.40% -0.45%
Kennedy-Wilson Holdings, Inc. 2.94% -0.39%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 10.77% 4.71%
Retail REITs 4.84% 1.13%
Hotel & Resort Reits 1.88% 1.01%
Airport Services 2.43% 0.95%
IT Consulting & Other Services^ 1.90% 0.84%
Top Detractors Average Weight Contribution
Hotels, Resorts & Cruise Lines 16.07% -5.79%
Real Estate Services 10.66% -4.82%
Building Products 5.89% -2.56%
Health Care Facilities 3.10% -1.55%
Leisure Facilities 0.95% -0.90%
By Holdings
Top Contributors Average Weight Contribution
Equinix, Inc. 3.87% 1.81%
Digital Realty Trust, Inc. 1.30% 1.10%
Martin Marietta Materials, Inc. 0.93% 0.88%
InterXion Holding N.V. 1.87% 0.83%
Simon Property Group, Inc. 2.81% 0.76%
Top Detractors Average Weight Contribution
Jones Lang LaSalle, Inc. 3.68% -2.47%
CBRE Group, Inc. 4.50% -1.79%
Norwegian Cruise Line Holdings, Ltd. 3.74% -1.45%
Caesarstone Ltd. 1.54% -1.23%
Diamond Resorts International, Inc. 1.44% -1.00%
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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. Portfolio holdings may change over time. Positions smaller than 0.05% round to 0.0%. Portfolio holdings are subject to 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.

^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.

Definitions (provided by Baron Capital, Inc.): EPS Growth Rate (3-5 Year): indicates the long-term forecasted EPS growth of the companies in the portfolio, calculated using the weighted average of the available 3-to-5 year forecasted growth rates for each of the stocks in the portfolio provided by Factset Estimates. The EPS Growth rate does not forecast the Fund’s performance. Price/ Earnings Ratio (trailing 12-months): is a valuation ratio of a company’s current share price compared to its actual earnings per share over the last twelve months. Price/Book Ratio: is a ratio used to compare a company’s stock price to its tangible assets, and it is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. Price/Sales Ratio: is a valuation ratio of a stock’s price relative to its past performance. It represents the amount an investor is willing to pay for a dollar generated from a particular company’s operations. Price/Sales is calculated by dividing a stock’s current price by its revenue per share for the last 12 months. Weighted Harmonic Average: is a calculation that reduces the impact of extreme observation on the aggregate calculation by weighting them based on their size in the fund.

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