Baron Small Cap Fund (BSCFX)

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Fund Description

Baron Small Cap Fund invests primarily in small growth companies.

    

    

Facts & Characteristics as of March 31, 2016

Inception Date September 30, 1997
Net Assets (All share classes combined) $3.57 billion
# of Equity Securities / % of Net Assets 72/99.2%
Turnover (3 Year Average) 14.82%
Median Market Cap $2.46 billion
Weighted Average Market Cap $5.04 billion
CUSIP 068278308
Expense Ratio (as of FYE 09/15)* 1.30%
EPS Growth (3-5 year forecast) 16.8%
Price/Earnings Ratio (trailing 12-month) 27.9
Price/Book Ratio 3.2
Price/Sales Ratio 2.1

Top Ten Holdings as of May 31, 2016

Holding Sector Percentage*
TransDigm Group, Inc. (TDG), through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the United States.
Industrials 4.9%
Gartner, Inc. (IT) is the leading independent provider of research and analysis on the information technology industry.
Information Technology 4.6%
Acuity Brands, Inc. (AYI) is North America’s leading provider of lighting solutions.
Industrials 3.9%
Waste Connections, Inc. (WCN) is an integrated solid-waste services company that provides solid-waste collection, transfer, disposal, and recycling services in mostly secondary markets in western and southern areas of the United States as well as Canada (via acquisition).  
Industrials 3.9%
Bright Horizons Family Solutions, Inc. (BFAM) is the leading provider of high quality corporate sponsored childcare in the U.S. and U.K., as well as other countries. It provides child care and early education services under multi-year contracts in its own or sponsor-owned centers.
Consumer Discretionary 3.8%
The Ultimate Software Group, Inc. (ULTI) is a leading provider of cloud-based payroll and human resources software.
Information Technology 3.7%
IDEXX Laboratories, Inc. (IDXX) is the leading provider of diagnostics to the veterinary industry.
Health Care 3.1%
Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global P&C insurance industry.
Information Technology 2.6%
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 2.5%
SBA Communications Corp. (SBAC) is the third largest independent owner of wireless towers in the U.S. and has a growing presence in Canada, Central America, and Brazil. SBA owns and operates over 25,000 towers in total.
Telecommunication Services 2.5%
Total 35.5%
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Portfolio Holdings as of March 31, 2016

Holding Sector Market Cap ($Bn) Percentage*
Gartner, Inc. Information Technology $7.357 4.9%
TransDigm Group, Inc. Industrials $11.781 4.3%
Bright Horizons Family Solutions, Inc. Consumer Discretionary $3.908 4.1%
Waste Connections, Inc. Industrials $7.906 3.9%
Acuity Brands, Inc. Industrials $9.553 3.7%
The Ultimate Software Group, Inc. Information Technology $5.582 3.5%
SBA Communications Corp. Telecommunication Services $12.558 3.4%
IDEXX Laboratories, Inc. Health Care $7.017 2.9%
Guidewire Software, Inc. Information Technology $3.926 2.4%
Gaming and Leisure Properties, Inc. Financials $3.617 2.4%
On Assignment, Inc. Industrials $1.964 2.3%
FleetCor Technologies, Inc. Information Technology $13.777 2.3%
Mettler-Toledo International, Inc. Health Care $9.263 1.9%
DexCom, Inc. Health Care $5.551 1.9%
Press Ganey Holdings Inc Health Care $1.588 1.9%
ICON plc Health Care $4.127 1.8%
Nord Anglia Education Inc. Consumer Discretionary $2.175 1.8%
INC Research Holdings, Inc. Health Care $2.224 1.6%
FEI Company Information Technology $3.638 1.5%
Berry Plastics Group, Inc. Materials $4.356 1.5%
Electronics For Imaging Information Technology $1.998 1.5%
The Cheesecake Factory, Inc. Consumer Discretionary $2.574 1.4%
Penn National Gaming, Inc. Consumer Discretionary $1.357 1.4%
WEX Inc. Information Technology $3.221 1.4%
Cantel Medical Corp. Health Care $2.976 1.4%
The Madison Square Garden Co. Consumer Discretionary $4.096 1.4%
Cognex Corp. Information Technology $3.310 1.3%
Mattress Firm Holding Corp. Consumer Discretionary $1.571 1.3%
Liberty Media Corp Cl C - Broadband Consumer Discretionary $12.825 1.3%
Summit Materials, Inc. Materials $1.947 1.3%
BJ's Restaurants, Inc. Consumer Discretionary $1.002 1.2%
Nordson Corp. Industrials $4.334 1.2%
Financial Engines, Inc. Financials $1.936 1.2%
Sarana Menara Nusantara Tbk PT Telecommunication Services $3.386 1.2%
ACI Worldwide, Inc. Information Technology $2.476 1.2%
PRA Health Sciences, Inc. Health Care $2.577 1.2%
The Chefs' Warehouse, Inc. Consumer Staples $0.535 1.1%
Valero Energy Partners LP Energy $3.094 1.1%
Catalent Inc. Health Care $3.321 1.1%
RBC Bearings Incorporated Industrials $1.768 1.1%
Houghton Mifflin Harcourt Company Consumer Discretionary $2.453 1.1%
Moelis & Company Financials $1.537 1.0%
HealthEquity, Inc. Health Care $1.425 1.0%
Aspen Technology, Inc. Information Technology $3.013 0.9%
Monro Muffler Brake, Inc. Consumer Discretionary $2.301 0.9%
Party City Holdco Inc. Consumer Discretionary $1.794 0.9%
PRINCIPAL CASH Cash & Cash Equivalents - 0.8%
Acxiom Corp. Information Technology $1.666 0.8%
CBRE Group, Inc. Financials $9.633 0.8%
Healthcare Services Group, Inc. Industrials $2.657 0.8%
ExamWorks Group, Inc. Health Care $1.213 0.8%
Diplomat Pharmacy, Inc. Health Care $1.769 0.8%
Chesapeake Lodging Trust Financials $1.590 0.7%
Ferroglobe PLC Materials $1.514 0.7%
The Spectranetics Corporation Health Care $0.620 0.7%
comScore, Inc. Information Technology $1.702 0.6%
Scorpio Tankers Inc. Energy $1.022 0.6%
Equinix, Inc. Financials $22.827 0.5%
SL Green Realty Corp. Financials $9.814 0.5%
DigitalGlobe, Inc. Industrials $1.113 0.5%
Del Frisco's Restaurant Group, Inc. Consumer Discretionary $0.388 0.5%
Liberty Broadband-Cl C Consumer Discretionary $5.980 0.5%
MSG Networks, Inc. Consumer Discretionary $1.294 0.5%
Brookdale Senior Living, Inc. Health Care $2.936 0.4%
United Natural Foods, Inc. Consumer Staples $2.028 0.4%
Flotek Industries, Inc. Materials $0.402 0.4%
PBF Logistics LP Energy $0.695 0.4%
Dominion Midstream Partners, L.P. Energy $2.622 0.4%
Wingstop Inc. Consumer Discretionary $0.648 0.4%
Liberty Media Corp. - Cl A Consumer Discretionary $12.825 0.3%
Artisan Partners Asset Management Inc. Financials $1.249 0.3%
Habit Restaurants, Inc. Consumer Discretionary $0.484 0.3%
Westlake Chemical Partners LP Materials $0.533 0.2%
Liberty Broadband-Cl A Consumer Discretionary $5.980 0.2%
Manitowoc Foodservice, Inc. Industrials $2.020 0.1%
Total 100.0%
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Sector Breakdown as of May 31, 2016

Sector Sub-Industry Percentage*
Cash & Cash Equivalents
4.0%
Consumer Discretionary
  • Education Services 6.6%
  • Restaurants 3.6%
  • Cable & Satellite 2.5%
  • Casinos & Gaming 1.8%
  • Movies & Entertainment 1.4%
  • Specialty Stores 0.9%
  • Homefurnishing Retail 0.9%
  • Automotive Retail 0.6%
18.2%
Consumer Staples
  • Food Distributors 0.8%
0.8%
Energy
  • Oil & Gas Storage & Transportation 2.4%
2.4%
Financials
  • Specialized REITs 2.5%
  • Asset Management & Custody Banks 0.9%
  • Investment Banking & Brokerage 0.9%
  • Real Estate Services 0.8%
  • Hotel & Resort REITs 0.7%
  • Office REITs 0.5%
  • Specialized Finance 0.4%
6.8%
Health Care
  • Health Care Equipment 6.1%
  • Life Sciences Tools & Services 6.1%
  • Health Care Technology 2.2%
  • Health Care Services 1.3%
  • Managed Health Care 1.0%
  • Health Care Supplies 0.9%
  • Pharmaceuticals 0.6%
  • Health Care Facilities 0.5%
  • Biotechnology 0.1%
18.7%
Industrials
  • Aerospace & Defense 5.6%
  • Electrical Components & Equipment 3.9%
  • Environmental & Facilities Services 3.9%
  • Industrial Machinery 2.4%
  • Human Resource & Employment Services 2.3%
  • Diversified Support Services 0.8%
  • Trading Companies & Distributors 0.4%
19.3%
Information Technology
  • Application Software 8.6%
  • IT Consulting & Other Services 5.5%
  • Data Processing and Outsourced Services 3.6%
  • Electronic Equipment & Instruments 2.3%
  • Technology Hardware, Storage & Peripherals 1.5%
  • Internet Software & Services 0.5%
22.1%
Materials
  • Construction Materials 1.4%
  • Metal & Glass Containers 1.3%
  • Specialty Chemicals 0.6%
  • Diversified Metals & Mining 0.6%
  • Commodity Chemicals 0.2%
4.1%
Telecommunication Services
  • Integrated Telecommunication Services 2.5%
  • Wireless Telecommunication Services 1.1%
3.6%
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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
Environmental & Facilities Services 3.67% 0.63%
Electronic Equipment & Instruments 2.69% 0.47%
Industrial Machinery 2.04% 0.41%
Specialized REITs 3.01% 0.32%
Integrated Telecommunication Services 1.98% 0.23%
Top Detractors Average Weight Contribution
Wireless Telecommunication Services 2.64% -0.53%
Human Resource & Employment Services 2.27% -0.52%
Specialty Chemicals 0.53% -0.50%
Oil & Gas Storage & Transportation 2.90% -0.45%
Life Sciences Tools & Services 6.62% -0.36%
By Holdings
Top Contributors Average Weight Contribution
Waste Connections, Inc. 3.67% 0.63%
Gaming and Leisure Properties, Inc. 2.11% 0.29%
Nordson Corp. 1.12% 0.26%
The Chefs' Warehouse, Inc. 0.93% 0.25%
Cognex Corp. 1.30% 0.24%
Top Detractors Average Weight Contribution
On Assignment, Inc. 2.27% -0.52%
DexCom, Inc. 1.90% -0.43%
TransDigm Group, Inc. 4.47% -0.30%
Flotek Industries, Inc. 0.40% -0.29%
INC Research Holdings, Inc. 1.67% -0.28%

12 Months

By Sub-Industry
Top Contributors Average Weight Contribution
Environmental & Facilities Services 3.34% 0.78%
Electrical Components & Equipment 3.42% 0.75%
Life Sciences Tools & Services 5.38% 0.54%
Health Care Equipment 4.98% 0.43%
IT Consulting & Other Services^ 4.80% 0.41%
Top Detractors Average Weight Contribution
Oil & Gas Storage & Transportation 4.32% -1.49%
Specialty Chemicals 1.23% -1.17%
Apparel, Accessories & Luxury Goods 1.00% -1.12%
Health Care Facilities 1.37% -1.09%
Food Distributors 2.20% -1.08%
By Holdings
Top Contributors Average Weight Contribution
Waste Connections, Inc. 2.70% 1.05%
Acuity Brands, Inc. 3.37% 0.79%
Bright Horizons Family Solutions, Inc. 3.20% 0.56%
Equinix, Inc. 1.45% 0.50%
Cantel Medical Corp. 0.89% 0.41%
Top Detractors Average Weight Contribution
United Natural Foods, Inc. 1.40% -1.12%
Brookdale Senior Living, Inc. 1.37% -1.09%
Ferroglobe PLC 1.21% -0.85%
Iconix Brand Group, Inc. 0.48% -0.82%
DigitalGlobe, Inc. 0.96% -0.77%
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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%.

Please Note: Baron Small Cap Fund sold out of Equinix, inc. as of April 28, 2016. We began to purchase SiteOne Landscape Supply, Inc. into the portfolio as of May 12, 2016.

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 Fund’s Industrial holdings have, on average, low degree of commodity exposure. Within the Fund’s Industrials exposure, 84.3% of the weight has low to no degree, 6% has medium degree and 9.7% has high degree of commodity exposure. The Fund’s Industrials weight as of 6/30/2015 was 17.6%.
 
^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.