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 December 31, 2016

Inception Date December 31, 2009
Net Assets (All share classes combined) $950.57 million
# of Equity Securities / % of Net Assets 37 / 97.8%
Turnover (3 Year Average) 43.47%
Median Market Cap $12.61 billion
Weighted Average Market Cap $23.81 billion
CUSIP 06828M702
Expense Ratio (as of FYE 12/15) 1.31%
EPS Growth (3-5 year forecast) 13.7%
Price/Earnings Ratio (trailing 12-month) 26.7
Price/Book Ratio 2.9
Price/Sales Ratio 2.4

Top Ten Holdings as of December 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 6.8%
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 76% stake in MGM Growth Properties, a gaming REIT and a 56% stake in MGM China.
Consumer Discretionary 6.3%
InterXion Holding N.V. (INXN) is a European provider of cloud and carrier-neutral colocation data center services. It has 42 data centers across 13 cities in 11 countries, over 100,000 square meters of equipped space, and 1,500 customers.
Information Technology 6.1%
Equinix, Inc. (EQIX) is a network neutral operator of state-of-the-art data centers across North America, Europe, and Asia-Pacific. It provides highly reliable facilities and offers low latency interconnection to and among business partners, networks, and cloud service providers, among others.
Real Estate 5.1%
American Tower Corp. (AMT) is the largest independent wireless tower operator worldwide, with 144,000 towers in 13 countries on five continents.
Real Estate 4.8%
Hilton Worldwide Holdings, Inc. (HLT) is the second largest hotel company in the world with 4,600 properties and 750,000 rooms. The company has 13 brands, including its flagship Hilton, Conrad, and Waldorf brands, across high-barrier-to-entry urban, convention and resort destinations.
Consumer Discretionary 4.6%
Home Depot, Inc. (HD) is the largest home improvement retailer in the U.S., with 2,260 stores worldwide.
Consumer Discretionary 4.3%
CBRE Group, Inc. (CBG) is a leading commercial real estate services company with the number one market share in all of its major businesses.
Real Estate 3.8%
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 3.8%
Vulcan Materials Company
Materials 3.0%
Total 48.6%
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Portfolio Holdings as of December 31, 2016

Holding Sector Market Cap ($Bn) Percentage*
Mohawk Industries, Inc. Consumer Discretionary $14.809 6.8%
MGM Resorts International Consumer Discretionary $16.530 6.3%
Interxion Holding N.V. Information Technology $2.473 6.1%
Equinix, Inc. Real Estate $25.512 5.1%
American Tower Corp. Real Estate $44.993 4.8%
Hilton Worldwide Holdings, Inc. Consumer Discretionary $26.922 4.6%
Home Depot, Inc. Consumer Discretionary $163.331 4.3%
CBRE Group, Inc. Real Estate $10.621 3.8%
Macquarie Infrastructure Corporation Industrials $6.686 3.8%
Vulcan Materials Company Materials $16.559 3.0%
Brookfield Asset Management, Inc. Financials $32.548 2.9%
American Campus Communities, Inc. Real Estate $6.575 2.8%
The Sherwin-Williams Company Materials $24.968 2.8%
Masonite International Corp. Industrials $1.974 2.8%
Martin Marietta Materials, Inc. Materials $14.060 2.7%
Simon Property Group, Inc. Real Estate $55.831 2.5%
Alexandria Real Estate Equities, Inc. Real Estate $8.825 2.3%
Norwegian Cruise Line Holdings, Ltd. Consumer Discretionary $9.662 2.3%
PRINCIPAL CASH Cash & Cash Equivalents - 2.2%
Prologis, Inc. Real Estate $27.906 2.1%
MGM Growth Properties LLC Real Estate $5.456 2.1%
Gaming and Leisure Properties, Inc. Real Estate $6.342 2.0%
CoStar Group, Inc. Information Technology $6.144 1.9%
Marriott International, Inc. Consumer Discretionary $32.285 1.9%
Vornado Realty Trust Real Estate $19.725 1.9%
Douglas Emmett, Inc. Real Estate $5.540 1.8%
Lowe's Companies, Inc. Consumer Discretionary $61.864 1.6%
SBA Communications Corp. Telecommunication Services $12.612 1.6%
Toll Brothers, Inc. Consumer Discretionary $5.035 1.5%
Masco Corporation Industrials $10.381 1.5%
Rexford Industrial Realty, Inc. Real Estate $1.532 1.5%
Royal Caribbean Cruises Ltd. Consumer Discretionary $17.604 1.3%
PT Sarana Menara Nusantara Tbk. Telecommunication Services $2.711 1.1%
SiteOne Landscape Supply, Inc. Industrials $1.373 1.1%
General Growth Properties, Inc. Real Estate $22.127 0.9%
Jones Lang LaSalle, Inc. Real Estate $4.568 0.9%
Boston Properties, Inc. Real Estate $19.342 0.8%
Kennedy-Wilson Holdings, Inc. Real Estate $2.324 0.6%
Total 100.0%
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Sector Breakdown as of December 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
2.2%
Consumer Discretionary
  • Hotels, Resorts & Cruise Lines 10.1%
  • Home Furnishings 6.8%
  • Casinos & Gaming 6.3%
  • Home Improvement Retail 5.9%
  • Homebuilding 1.5%
30.6%
Financials
  • Asset Management & Custody Banks 2.9%
2.9%
Industrials
  • Building Products 4.3%
  • Industrial Conglomerates ^ 3.8%
  • Trading Companies & Distributors 1.1%
9.1%
Information Technology
  • IT Consulting & Other Services 6.1%
  • Internet Software & Services 1.9%
8.1%
Materials
  • Construction Materials 5.7%
  • Specialty Chemicals 2.8%
8.5%
Real Estate
  • Specialized REITs^ 14.2%
  • Real Estate Services 4.7%
  • Office REITs^ 4.4%
  • Industrial REITs 3.6%
  • Retail REITs 3.4%
  • Residential REITs 2.8%
  • Hotel & Resort REITs 2.1%
  • Real Estate Operating Companies 0.7%
35.8%
Telecommunication Services
  • Integrated Telecommunication Services 1.6%
  • Wireless Telecommunication Services 1.1%
2.8%
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Top Contributors & Detractors as of December 31, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Hotels, Resorts & Cruise Lines 7.72% 1.18%
Construction Materials 5.21% 0.85%
Casinos & Gaming 6.46% 0.74%
Real Estate Services 5.27% 0.32%
Industrial REITs 2.44% 0.18%
Top Detractors Average Weight Contribution
Specialized REITs^ 16.66% -0.90%
Health Care Facilities 0.78% -0.80%
Retail REITs 3.77% -0.51%
Asset Management & Custody Banks 3.25% -0.23%
IT Consulting & Other Services 5.87% -0.23%
By Holdings
Top Contributors Average Weight Contribution
MGM Resorts International 6.46% 0.74%
Hilton Worldwide Holdings, Inc. 3.54% 0.67%
Martin Marietta Materials, Inc. 2.46% 0.57%
CBRE Group, Inc. 3.77% 0.51%
Vulcan Materials Company 2.75% 0.28%
Top Detractors Average Weight Contribution
Brookdale Senior Living, Inc. 0.78% -0.80%
Gaming and Leisure Properties, Inc. 3.96% -0.50%
Simon Property Group, Inc. 2.58% -0.39%
American Tower Corp. 4.69% -0.35%
Brookfield Asset Management, Inc. 3.25% -0.23%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 15.40% 2.45%
Casinos & Gaming 5.28% 1.32%
Construction Materials 3.20% 1.18%
Airport Services^ 1.92% 0.90%
Hotel & Resort REITs 2.34% 0.60%
Top Detractors Average Weight Contribution
Real Estate Services 9.00% -3.05%
Hotels, Resorts & Cruise Lines 9.87% -2.50%
Building Products 3.63% -1.33%
Real Estate Operating Companies^ 1.95% -0.65%
Wireless Telecommunication Services 1.36% -0.63%
By Holdings
Top Contributors Average Weight Contribution
Martin Marietta Materials, Inc. 2.12% 1.32%
MGM Resorts International 5.28% 1.32%
Macquarie Infrastructure Corporation 3.29% 1.24%
Hilton Worldwide Holdings, Inc. 3.57% 0.91%
Digital Realty Trust, Inc. 2.08% 0.78%
Top Detractors Average Weight Contribution
Jones Lang LaSalle, Inc. 2.76% -2.06%
Norwegian Cruise Line Holdings, Ltd. 3.01% -1.55%
Royal Caribbean Cruises Ltd. 1.91% -1.03%
Caesarstone Ltd. 0.44% -0.78%
CBRE Group, Inc. 4.64% -0.74%
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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.