Baron Real Estate Fund (BREIX)

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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) $1.47 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 06828M801
Expense Ratio (as of FYE 12/14) 1.06%
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 May 31, 2016

Holding Sector Percentage*
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 5.7%
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 5.5%
MGM Resorts International (MGM) is a casino hospitality company with properties in Macau, Las Vegas, and regionally across the U.S.  75% of its EBITDA is in the U.S., while 25% is from Macau.
Consumer Discretionary 5.1%
InterXion Holding N.V. (INXN) is a European provider of cloud and carrier-neutral colocation data center services. It has 40 data centers across 11 countries (13 cities) in Europe, 100,000 square meters of equipped space (78% utilized), and 1,500 customers.
Information Technology 4.8%
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 4.4%
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.
Financials 3.7%
Macquarie Infrastructure Company Trust
Industrials 3.7%
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 3.6%
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 3.5%
Hilton Worldwide Holdings, Inc. (HLT) is the largest hotelier by room count in the world with 4,610 hotels consisting of 758,502 rooms. The company consists of 13 brands from Embassy Suites to its flagship Hilton and Waldorf brands.
Consumer Discretionary 3.5%
Total 43.5%
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Portfolio Holdings as of March 31, 2016

Holding Sector Market Cap ($Bn) Percentage*
Mohawk Industries, Inc. Consumer Discretionary $14.118 5.0%
CBRE Group, Inc. Financials $9.633 4.8%
Simon Property Group, Inc. Financials $65.384 4.0%
Norwegian Cruise Line Holdings, Ltd. Consumer Discretionary $12.568 3.9%
Hilton Worldwide Holdings, Inc. Consumer Discretionary $22.289 3.8%
MGM Resorts International Consumer Discretionary $12.111 3.8%
Jones Lang LaSalle, Inc. Financials $5.289 3.6%
Gaming and Leisure Properties, Inc. Financials $3.617 3.6%
Interxion Holding Nv Information Technology $2.418 3.6%
Equinix, Inc. Financials $22.827 3.4%
Kennedy-Wilson Holdings, Inc. Financials $2.506 3.1%
American Tower Corp. Financials $43.394 3.0%
Macquarie Infrastructure Company Trust Industrials $5.401 3.0%
Royal Caribbean Cruises Ltd. Consumer Discretionary $17.860 2.9%
Toll Brothers, Inc. Consumer Discretionary $4.973 2.9%
General Growth Properties, Inc. Financials $26.237 2.8%
Wyndham Worldwide Corp. Consumer Discretionary $8.576 2.8%
Brookfield Asset Management, Inc. Financials $34.364 2.7%
Digital Realty Trust, Inc. Financials $12.980 2.7%
Home Depot, Inc. Consumer Discretionary $167.181 2.7%
AvalonBay Communities, Inc. Financials $26.058 2.6%
Douglas Emmett, Inc. Financials $4.436 2.6%
Masonite International Corp. Industrials $1.999 2.5%
American Campus Communities, Inc. Financials $6.143 2.4%
Brookdale Senior Living, Inc. Health Care $2.936 2.4%
Martin Marietta Materials Inc. Materials $10.262 2.4%
Boston Properties, Inc. Financials $19.519 2.3%
Equity Residential Financials $27.397 2.3%
Kennedy Wilson Europe Real Estate PLC Financials $2.286 2.3%
Lowe's Companies, Inc. Consumer Discretionary $67.981 2.1%
Alexandria Real Estate Equities, Inc. Financials $6.669 2.0%
SBA Communications Corp. Telecommunication Services $12.558 1.2%
Sarana Menara Nusantara Tbk PT Telecommunication Services $3.386 1.1%
Aena SA Industrials $19.364 1.0%
PRINCIPAL CASH Cash & Cash Equivalents - 0.9%
Howard Hughes Corp. Financials $4.218 0.8%
SL Green Realty Corp. Financials $9.814 0.5%
CaesarStone Sdot-Yam Ltd. Industrials $1.209 0.5%
Total 100.0%
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Sector Breakdown as of May 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
Consumer Discretionary
  • Hotels, Resorts & Cruise Lines 9.6%
  • Home Furnishings 5.5%
  • Casinos & Gaming 5.2%
  • Home Improvement Retail 5.0%
  • Homebuilding 2.7%
  • Specialized REITs^ 15.7%
  • Real Estate Services^ 12.1%
  • Retail REITs 5.9%
  • Residential REITs 5.1%
  • Office REITs^ 4.6%
  • Hotel & Resort REITs 3.2%
  • Diversified Real Estate Activities 2.8%
  • Real Estate Operating Companies^ 0.9%
Health Care
  • Health Care Facilities 3.0%
  • Airport Services 4.8%
  • Building Products 3.6%
Information Technology
  • IT Consulting & Other Services 4.8%
  • Construction Materials 2.9%
Telecommunication Services
  • Wireless Telecommunication Services 1.1%
  • Integrated Telecommunication Services 1.0%
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Top Contributors & Detractors as of March 31, 2016

3 Months | 12 Months

3 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 11.95% 1.31%
Retail REITs 6.36% 0.63%
IT Consulting & Other Services 3.06% 0.55%
Residential REITs 6.72% 0.45%
Airport Services 2.01% 0.43%
Top Detractors Average Weight Contribution
Real Estate Services 11.24% -2.76%
Hotels, Resorts & Cruise Lines 13.72% -1.86%
Building Products 4.28% -1.18%
Office REITs^ 6.49% -0.52%
Leisure Facilities 0.32% -0.51%
By Holdings
Top Contributors Average Weight Contribution
InterXion Holding N.V. 3.06% 0.55%
Digital Realty Trust, Inc. 2.63% 0.49%
Martin Marietta Materials, Inc. 1.18% 0.42%
Brookfield Asset Management, Inc. 2.43% 0.39%
Simon Property Group, Inc. 3.76% 0.38%
Top Detractors Average Weight Contribution
Jones Lang LaSalle, Inc. 3.91% -1.64%
CBRE Group, Inc. 4.68% -0.99%
Royal Caribbean Cruises Ltd. 2.69% -0.81%
CaesarStone Sdot-Yam Ltd. 1.61% -0.76%
ClubCorp Holdings, Inc. 0.32% -0.51%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Specialized REITs^ 7.77% 2.18%
IT Consulting & Other Services^ 1.61% 0.82%
Retail REITs 4.03% 0.67%
Home Improvement Retail 4.62% 0.60%
Residential REITs 3.22% 0.54%
Top Detractors Average Weight Contribution
Hotels, Resorts & Cruise Lines 17.83% -4.60%
Real Estate Services 9.87% -3.53%
Health Care Facilities 5.03% -2.16%
Building Products 6.56% -1.47%
Wireless Telecommunication Services 3.28% -0.93%
By Holdings
Top Contributors Average Weight Contribution
Equinix, Inc. 3.79% 1.46%
InterXion Holding N.V. 0.79% 0.56%
Home Depot, Inc. 2.80% 0.54%
Digital Realty Trust, Inc. 0.65% 0.49%
Simon Property Group, Inc. 2.31% 0.45%
Top Detractors Average Weight Contribution
Jones Lang LaSalle, Inc. 3.64% -1.87%
CBRE Group, Inc. 4.06% -1.41%
Brookdale Senior Living, Inc. 2.94% -1.27%
Diamond Resorts International, Inc. 2.20% -1.14%
Hilton Worldwide Holdings, Inc. 4.00% -1.07%
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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 based on net assets. 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 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.