Ron Baron

Ron Baron

Last Update: 04-06-2016

Number of Stocks: 313
Number of New Stocks: 14

Total Value: $21,591 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ron Baron Watch

  • Baron Funds Spring Newsletter: Investing in the International Equity Markets

    With approximately 75% of the world's companies located outside the U.S.,1 the international equity markets offers a vast universe of investment opportunities.


    The fastest growing economies in the world are outside the U.S. In 2001, the U.S. accounted for 33% of global GDP; by 2014, this figure had declined to just 22%.2 At the same time, these markets operate within a constantly shifting matrix of economic, industrial, political, and financial forces that add layers of complexity to the investment process.

      


  • Baron Funds Comments on Vantiv Inc.

    Vantiv, Inc. (NYSE:VNTV) is a leading domestic payment processor. Its core systems enable merchants to accept and process credit and debit card payments. Vantiv operated as a business unit within Fifth Third Bancorp until it was spun off as a separate company in 2009 and went public in 2012. The company is the second-largest merchant acquirer in the U.S. with 19 billion processed transactions across 800,000 merchant locations in 2015. Vantiv’s diverse merchant base is weighted toward non-discretionary everyday spend categories, such as grocery and pharmacy, and it includes ten of the top 25 national retailers by revenue.


    Vantiv also provides its merchant clients value-added services, such as solutions to enhance their security standards and solutions that enable the acceptance of cards in e-commerce applications. Vantiv also provides payment services to financial institutions, such as card issuer processing and payment network processing.

      


  • Baron Funds Comments on Guidewire Software

    Shares of Guidewire Software, Inc. (NYSE:GWRE), a property and casualty (P&C) insurance software vendor, fell as high-growth, high-multiple technology stocks sold off aggressively during the quarter. We continue to believe that Guidewire is the leader among P&C core IT systems vendors, as evidenced by near-perfect retention rates, growing installed base, and accelerating adoption of its complete suite. We believe that the P&C industry is in the early stages of a very large replacement cycle of its core systems, and Guidewire should be an important beneficiary of this cycle. We think that the company’s recent deals with six Tier 1 P&C firms are indicative of the demand for its software.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on CBRE Group

    CBRE Group, Inc. (NYSE:CBG) is a global commercial real estate (CRE) services company that maintains a leading position in its major businesses segments, including leasing, investment sales, outsourcing, project and development services, advisory services, and CRE investment management. Its shares fell over lingering concerns that capital markets activity may slow dramatically and that the commercial real estate cycle may be nearing a peak. We believe the market’s concerns are overstated and that CBRE’s earnings would be resilient in a more challenged real estate cycle.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on The Charles Schwab Corp

    Shares of brokerage firm The Charles Schwab Corp. (NYSE:SCHW) declined as a result of the cyclical challenges to its earnings caused by lower equity market indexes and lower long-term interest rates. Lower equity markets result in lower asset-based fees to Schwab, and lower interest rates result in a lower net interest margin and the prospect of its money market fee waivers persisting for a longer period. Higher equity market volatility also resulted in a decline in trading activity by its clients.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on Illumina Inc.

    Shares of Illumina, Inc. (NASDAQ:ILMN), the leading provider of DNA sequencing technology to academic and commercial laboratories, fell during the quarter. Although Illumina reported solid fourth quarter financial results, management tempered the market’s expectations for sales of its HiSeq X and benchtop instruments during early-2016, and shares reacted negatively. We continue to believe that Illumina has a long runway for growth, driven by the increased adoption of DNA sequencing in large clinical markets, such as those for cancer screening, diagnosis, and treatment.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on LinkedIn Corp

    LinkedIn Corp. (NYSE:LNKD) is the world’s largest online professional network, with three business segments - Hiring Solutions, Marketing Solutions, and Premium Subscriptions - each serving a different customer base. Despite strong fourth quarter results, its shares dropped dramatically based upon its weak growth outlook for 2016. After reporting several quarters of inconsistent results, we believe management is finding it increasingly difficult to manage the complexity and generate growth across its three segments. We were sufficiently concerned about these results that we chose to exit the position.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on Fastenal Co.

    Shares of Fastenal Co. (NASDAQ:FAST), a leading distributor of industrial supplies, rose after reporting improving sales trends to start the year. We view the sequential strengthening of the company’s sales as evidence of some abating headwinds its business, notably in its energy-related end-markets. In addition, Fastenal displayed encouraging sales traction, and evidence of ongoing market share gains, in its manufacturing and construction end-markets. Based on several of its internal growth initiatives, including the installation of vending machines at certain customers’ worksites and the placement of full-time Fastenal employees at other customers’ sites, we believe the company is poised to generate accelerating earnings growth during the next several years.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on West Pharmaceutical Services

    West Pharmaceutical Services, Inc. (NYSE:WST) manufactures components and systems for the packaging and delivery of injectable drugs. West’s shares gained during the quarter after reporting strong financial results and providing solid earnings guidance for 2016. West’s products are frequently “designed in” as part of the regulatory approval process for its clients’ drugs, which makes it quite difficult for West’s products to be displaced throughout a drug’s lifecycle. There is a substantial development pipeline of injectable biologic drugs, and we believe this will allow West to experience double-digit growth rates in its main market for at least the next several years. We also believe that West will benefit from the increased sale of high-margin proprietary products, including newly-developed plastic syringes and wearable injectors for a new generation of high volume, high viscosity drugs. As a result, we believe that company has the potential to double its earnings during the next five years.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Funds Comments on IDEXX Laboratories Inc.

    Shares IDEXX Laboratories, Inc. (NASDAQ:IDXX), the leading provider of testing and diagnostics to veterinarians, gained after the company reported healthy financial results. We believe that IDEXX’s business trends are improving and that its competitive position is becoming increasingly unassailable. The company’s placements of new diagnostic instruments in veterinary hospitals grew by almost 50% in its recent quarter. We expect this to be a key driver of future growth because these instruments require the ongoing purchase of high-margin consumables to perform in-clinic tests. In addition, the company’s network of domestic testing laboratories grew at more than twice the rate of its main competitor. We also observed rising productivity of its field salesforce, and a rebound in its rapid assay products. We believe that these trends, coupled with a number of new tests that should emerge from its meaningful research and development effort, will drive increased organic revenue and earnings growth during the next few years.


    From Baron Asset Funds' first quarter 2016 commentary.

      


  • Baron Asset Fund 1st Quarter Commentary

    During the three-month period ended March 31, 2016, market indexes experienced substantial volatility, dropping approximately 10% through mid-February, and then rebounding to finish the quarter modestly higher. The market downdraft was driven by several factors, including data points signaling a slowdown in the Chinese economy, the continued drop in energy prices, widespread dislocation in the credit markets, and general fears of global political instability. Later in the quarter, oil prices rebounded, credit spreads narrowed, positive data points emerged concerning U.S. employment and housing trends, and the equity markets recovered.

      


  • Ron Baron Likes Hyatt, Inovalon and Tesla

    Ron Baron (Trades, Portfolio) is responsible for building up Baron Capital. Atypical of gurus he follows a growth at a reasonable price strategy with an emphasis on growth.


    More in line with Warren Buffett’s teaching his investment horizon is extremely long term. Baron Growth holds for 12 years on average compared to the average mutual fund’s holding period of two years. Baron has invested half a billion in the firm’s funds so his interests are pretty much aligned with outside investors. The investment magazine Barron’s interviewed him, yielding three interesting investment ideas I want to discuss in a bit more detail.

      


  • Ron Baron Cuts Stake in United Natural Foods, Exits Targa Resources

    Ron Baron (Trades, Portfolio) is the founder of Baron Capital Management. He is co-portfolio manager of Baron Asset Fund and remains portfolio manager of the Growth and Partners Funds. His most recent trades according to GuruFocus' Real Time Picks, include the following.


    His stake in United Natural Foods Inc. (UNFI) has been reduced by 87.70% with an impact of -0.51% on the portfolio.

      


  • Ron Baron Sells More Than 2.7 Million Shares of United Natural Foods

    Guru Ron Baron (Trades, Portfolio) reduced his position in United Natural Foods Inc. (NASDAQ:UNFI) by shaving 2,713,307 shares from his portfolio on March 31.


    United Natural Foods is a distributor of natural, organic and specialty foods and nonfood products in the U.S. and Canada. The company offers more than 85,000 high quality natural, organic and specialty foods and nonfood products, consisting of national, regional and private label brands grouped into six product categories: grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products and personal care items. It serves more than 40,000 customer locations primarily located across the U.S. and Canada.

      


  • 4 Guru-Backed Restaurant Stocks Worth Owning

    Restaurants that survive by creating a solid brand around efficient operations can raise their prices to meet with inflationary demands and have a recurring customer base, no email marketing necessary. Chipotle (CMG), Panera Bread (NASDAQ:PNRA), Buffalo Wild Wings (NASDAQ:BWLD) and BJ's Restaurants (NASDAQ:BJRI) are all good buys as a basket of stocks that give an investor exposure to this sector of the market.


      


  • Ron Baron Sells Stake in ITC Holdings Corp.

    Guru Ron Baron (Trades, Portfolio) founded Baron Capital in 1982, which currently owns 313 stocks with a total valuation of $21.591 billion.


    In the first quarter of 2016, Baron sold out 12,971,289 shares of ITC Holdings Corp. (NYSE:ITC).

      


  • Guru Stocks at 52-Week Lows

    According to GuruFocus' list of 52-week lows, these guru stocks have reached their 52-week lows.


    Philippine Long Distance Telephone reached the 52-week low of $36.96

      


  • Baron Funds Comments on comScore Inc.

    comScore, Inc. (NASDAQ:SCOR) is a leader in digital media measurement. The company recently announced the acquisition of Rentrak, a real-time video measurement platform. We expect the merger to be approved shortly, and we believe that the combined company should be well positioned to provide the broader media industry cross channel audience measurement tools. We believe that cross media measurement and more precise video based measurement allow the company to provide new products for which there is significant demand among customers. The combination of Rentrak and comScore should allow the combined companies to grow at a faster rate than they would stand alone, and drive higher margins over time.


    From Baron Discover Fund's fourth quarter 2015 commentary.

      


  • Baron Funds Comments on Manchester United Plc

    Manchester United plc (NYSE:MANU) is an English Premier League professional sports team that generates revenue from broadcasting, sponsorship, and licensing. Manchester United is one of most popular soccer clubs in the world with more than 600 million fans. The value of live sports continues to rise globally, especially in the context of growth in DVR and on demand TV viewing. Going forward, we expect the company to benefit from higher international TV rights, new e-commerce and merchandising deals, a new direct to consumer mobile offering, and a broader roll-out of global brand licensing.


    From Baron Discover Fund's fourth quarter 2015 commentary.

      


  • Baron Funds Comments on Education Realty Trust Inc.

    Education Realty Trust, Inc. (NYSE:EDR) is a leading student housing REIT focused on the management and development of collegiate housing that is either on campus or right next to campus. We like Education Realty for three reasons. First, the company has proven over time to be recession resistant (it has consistently raised rates both in good and bad economic times). The reason for this is that universities tend to see strong enrollment growth during recessions as students put off entering (what is typically a difficult) job market. Second, it is, in our view, very well positioned to capitalize on what we believe is the most exciting part of the student housing market, partnering with universities to tear down and redevelop old dorms that were built in the 1970s or earlier and replace them with modern dorms. Typically in these partnerships, the universities want to partner with operators that have a lot of experience developing student housing and that have strong balance sheets, and there are only a few companies that meet this criteria. Education Realty has historically shown a lot of success in signing these partnerships, and we believe this will drive meaningful profit growth going forward. Lastly, when compared to their multi-family REIT peers, the company trades at a large valuation discount. We believe this discount will close in time as investors will reward Education Realty for its operational consistency.


    From Baron Discover Fund's fourth quarter 2015 commentary.

      


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