Ron Baron

Ron Baron

Last Update: 04-15-2015

Number of Stocks: 361
Number of New Stocks: 29

Total Value: $24,949 Mil
Q/Q Turnover: 3%

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

Ron Baron Watch

  • Ron Baron Bought 2.52% of Inovalon Holding Inc.

    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 portfolio is composed of 361 stocks with a total value of $24,949 million and a 3% Q/Q turnover.

      


  • Fossil: Catching a Break, or Catching a Knife?

    It’s a fine company with a once-impressive string of earnings reports; earnings that not only grew, but grew consistently. And, its watches look good, too!


    Fossil Group, Inc. (FOSL) has fallen on harder times lately, most recently in February 2015 when it warned earnings for this year and next year would fail to match the level of those in 2014. To make the future even more interesting, Apple (AAPL) has finally brought out its Watch, which some say could be a category killer (although they’ve been vague on which category).

      


  • CarMax: Secular Growth to Continue

    Carmax (KMX) recently reported strong Q4 results with its EPS of $0.67 coming well ahead of consensus estimates. Summarizing the results Stifel’s analyst James Albertine highlighted the following key metrics:


      


  • Vanguard Health Care Fund's Undervalued Stocks

    Vanguard Health Care Fund is managed by Edward Owens that has worked in investment management for over 30 years. He has managed the Vanguard Health Care Fund (Trades, Portfolio) since its inception in May 1984. Owens received a B.A. from the University of Virginia and an M.B.A from Harvard Business School.


    Owens invests primarily in health care companies (94.6% of Stocks are from that sector). His strategy is characterized by a long-term focus and careful attention to valuations.

      


  • Analyzing Ron Baron's Top Picks: Dick's Sporting Goods

    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. Baron graduated from Bucknell University with a B.A. in Chemistry, and later attended George Washington University Law School in the evenings.


    Ron Baron (Trades, Portfolio) invests primarily in small and mid-size growth companies. He likes companies with open-ended growth opportunities and defensible niches. He applies a bottom-up company research, invests for the long-term, and tries to purchase companies at what he believes are attractive prices. He invests in growth companies using a value-oriented purchase discipline. Baron ignores short-term market fluctuations when he believes the fundamental reasons for purchasing a company have not changed. He holds investments for longer than five years on average.

      


  • John Griffin Acquires Stake in Mobileye

    Mobileye (MBLY), a technology company that is based in the Netherlands with a research and development center in Jerusalem, is something of an enigma for investors.


    Mobileye specializes in cutting-edge automotive technology. Its products are designed to help prevent auto collisions or lessen their severity when they can’t be avoided. The nature of the business means the products it chooses to promote tend to be big hits or big misses. Sometimes they pay off. Sometimes they don’t. The stock price fluctuates – it is up one quarter, down the next.

      


  • Baron Opportunity Fund Fourth Quarter 2014 Commentary

    Baron Opportunity Fund had a modest fourth quarter, gaining 3.56%, but trailing both the Russell Midcap Growth Index, which rose 5.84%, and the large-cap S&P 500 Index, which increased 4.93%.


    Review & Outlook As I’ve written in past letters, 2014 was a challenging year for the Baron Opportunity Fund. Performance was not up to our (and my) historical standards. When the market turned in mid-March, we were a top decile fund against our peer group for the prior 5- and 10-year periods (according to Morningstar data).* But the Fund trailed the market averages materially last year. As I detailed throughout the year, the market environment presented a significant headwind to the Fund’s consistent strategy of investing in high growth, innovative businesses, and, with the clarity of 20/20 hindsight, we made some missteps of our own. For those investors who continue to place their trust in us, I want to personally thank you for your support and patience. It is our aim to prove 2014 the anomaly I believe it was.

      


  • Baron Funds Comments on TerraForm Power Inc

    During the quarter, we re-initiated a position in TerraForm Power, Inc. (TERP), a dividend growth-oriented company formed to own and operate contracted clean power generation assets acquired from parent company SunEdison, the third largest worldwide solar energy developer. The company is a part of a new class of investments, known as a “yieldcos,” which are similar to traditional energy master limited partnerships. These “yieldco” businesses are comprised of long-lived assets contracted with creditworthy counterparties, stable cash flows, favorable tax attributes, and predictable growth driven by assets “dropped down” by the parent company due to the yieldco’s lower cost of capital. During the quarter, the companies announced a transformational acquisition to acquire First Wind for $2.4 billion, which serves to diversify the platform into wind energy as well as accelerate its growth. With 24% CAGR in dividend per share now expected through 2019, we think TerraForm is an attractive total return investment in the rapidly growing global renewable energy sector. (Rebecca Ellin)

    From Ron Baron (Trades, Portfolio)’s Baron Focused Growth Fund Q4 2014 Quarterly Report.  


  • Baron Funds Comments on Financial Engines Inc

    Shares of Financial Engines, Inc. (FNGN), a service provider to defined contribution plans and individual investors, have declined by approximately 50% from their peak in early 2014.The Fund took advantage of low share prices to add to the position it established in the previous quarter. The stock remained weak in the fourth quarter following an unexpected management change. The new CEO has substantial operating and marketing experience, and has worked for Financial Engines since 2001. Accordingly, we think this change could be a positive and our long-term investment premise still holds. Financial Engines is the dominant player in a $5 trillion defined contribution retirement market. The company currently has contracts encompassing approximately $1 trillion in plan assets and manages over $100 billion. We believe there is significant potential to increase both figures through increased sales to plan sponsors, improved marketing to plan participants and broadened product offerings. Additionally, we believe the company can eventually use its expertise to service the IRA and defined benefit market, each with an additional $5 trillion in assets. We believe Financial Engines’ essential advice offering and plan connectivity advantage should result in significant client growth and a profitable recurring revenue stream. (Michael Baron)

    From Ron Baron (Trades, Portfolio)’s Baron Focused Growth Fund Q4 2014 Quarterly Report.  


  • Baron Funds Comments on Pinnacle Entertainment Inc

    Shares of Pinnacle Entertainment, Inc. (PNK), a regional casino company, declined in the fourth quarter after the company announced it would start the process of converting to a REIT and spinning off its real estate assets. Investors grew cautious ahead of a proposed equity offering that Pinnacle is planning for mid-2015 to help reduce its debt. The Fund exited its position in Pinnacle. (David Baron)

    From Ron Baron (Trades, Portfolio)’s Baron Focused Growth Fund Q4 2014 Quarterly Report.  


  • Baron Funds Comments on Colfax Corp

    Shares of global industrial machinery company Colfax Corp. (CFX) fell in the fourth quarter on reports of weaker-than-expected third quarter earnings and below-consensus 2015 guidance. Shares also declined as the market rotated out of companies such as Colfax with exposure to falling oil and gas pricing, slowing international markets, and headwinds from foreign exchange exposure. We believe Colfax will use its proven business system to improve operations of acquired companies, which we believe will generate substantial shareholder value over time. (Rebecca Ellin)

    From Ron Baron (Trades, Portfolio)’s Baron Focused Growth Fund Q4 2014 Quarterly Report.  


  • Baron Funds Comments on CaesarStone Sdot-Yam Ltd

    CaesarStone Sdot-Yam Ltd. (CSTE) saw its stock price rise in the fourth quarter. CaesarStone is a leading global manufacturer of quartz surfaces for kitchens and bathrooms. Performance was driven by a strong earnings beat for the third quarter and management’s rosy outlook, as earnings growth continues to accelerate from successful new product launches and quartz market share gains vs. other countertop materials, such as granite and marble. (David Kirshenbaum)

    From Ron Baron (Trades, Portfolio)’s Baron Focused Growth Fund Q4 2014 Quarterly Report.  


  • Ron Baron’s Baron Focused Growth Fund Q4 2014 Quarterly Report

    Dear Baron Focused Growth Fund Shareholder:


    Performance

      


  • Baron Funds Comments on Zillow Inc

    We initiated a position in Zillow Inc. (Z) in the quarter. Zillow is the leading online real estate site in the U.S., offering information on homes for sale and rent, in addition to the Zillow Mortgage Marketplace. The company also owns and operates Street Easy, the leading real estate site for New York City. Zillow continues to invest in its brand as the leader in an $8 billion real estate advertising market. The company is merging with number two player Trulia, pending FTC approval. With the transition to online and mobile, we believe Zillow is well positioned to grow meaningfully from the 4% share it has today, and will generate meaningfully more revenue, cash flow, and shareholder value over the next several years. (Ashim Mehra)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on Air Lease Corp

    Air Lease Corp. (AL) leases commercial aircraft to airlines around the world. Air Lease owns 221 planes, with 372 new planes worth about $29 billion on order. This is in anticipation of increased demand from U.S. and European airlines for more fuel-efficient models to replace their aging fleets, and the need for more lift in emerging markets. Aircraft demand remains strong, led by passenger traffic growth (up 5.8% through November 2014) and healthy customer profit margins. Revenues (+24% through the third quarter of 2014) and EPS (+41%) are growing as its fleet builds. Air Lease has greater than 65% of leases placed through 2016, providing predictable cash flows, and a well-capitalized balance sheet to generate a long “runway” of profitable growth. We believe Air Lease is trading cheaply compared to its potential earnings power. (David Goldsmith)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on The Carlyle Group

    Shares of alternative asset manager The Carlyle Group (CG) fell in the fourth quarter. The company continues to perform in accordance with our investment thesis, and assets under management remained largely flat in a challenging year. However, lower investment realizations resulted in a lower dividend payout, and lower performance fees resulted in a sharp drop in distributable earnings. Its hedge fund business also performed poorly. On a positive note, Carlyle has increased its diversification and is in an improved position to stabilize distributable earnings. (Michael Baron)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on Tesla Motors Inc

    After performing better than the market for most of 2014, shares of electric vehicle (EV) company Tesla Motors Inc. (TSLA) declined in the fourth quarter because traders believe lower oil prices reduce the near-term appeal of its cars. The company also delayed by three months the launch of its next model (“X”) to the second half of 2015. While we view the pursuit of a perfect product pre-launch as a positive, it points to the execution risk in a new category like EVs. We believe Tesla is an attractive long-term investment given its talent pool, technology leadership, first mover advantage, scale, and brand. (Gilad Shany)


    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.

      


  • Baron Funds Comments on Concho Resources Inc

    Concho Resources, Inc. (CXO) is an independent E&P company focused on the Permian Basin in West Texas and New Mexico. Concho shares fell in the fourth quarter amid the rout in oil prices. While Concho is executing on its drilling programs and seeing improving well results and widening prospects within its asset base, the impact of lower prices on cash flows is diminishing near-term growth forecasts and raising concerns about the future value of its inventory. We see the current environment as an opportunity for Concho to add high quality assets at attractive prices. (Jamie Stone)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on IDEXX Laboratories Inc

    Shares of IDEXX Laboratories, Inc. (IDXX), a leader in veterinary diagnostics, rose in the fourth quarter on better-than-expected earnings and progress on moving to a direct distribution model in the U.S. IDEXX’s fundamentals continue to improve, with organic growth in its core business reaching 12% in the most recently reported quarter. We believe organic revenue growth at current levels is sustainable due to recent innovations in IDEXX’s portfolio of diagnostic products, instruments, data management tools, and geographic expansion. (Rebecca Ellin)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on CoStar Group Inc

    Shares of CoStar Group, Inc. (CSGP), the leading provider of information and marketing services to the commercial real estate industry, contributed to performance in the fourth quarter. We attribute this to continued robust financial performance, early synergy generation from the acquisition of Apartments.com, and better relative performance from higher multiple growth stocks over the ownership period. Ongoing investments in R&D and a doubling of the sales force will, in our view, help increase customer penetration, while the acquisition of Apartments.com extends CoStar’s reach into multi-family lead generation. (Neal Rosenberg)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Baron Funds Comments on CarMax Inc

    Shares of CarMax, Inc. (KMX), the nation’s largest used car retailer, rose sharply during the fourth quarter after reporting strong results, highlighted by accelerating sales and earnings growth. Demand for the company’s high quality, late model vehicle inventory has remained strong and coincides with resurgent new car sales and an attractive financing environment. In addition, shares have been buoyed recently by the announcement of a large share repurchase program that we believe will be significantly accretive to earnings over the next several years. (Matt Weiss)

    From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.  


  • Weekly 3-Year Low Highlights: ABI, YOKU, DAR, BPT, EFC

    According to GuruFocus list of 3-year lows, Safety First Trust Series 2009-2 (ABI), Youku Tudou Inc (YOKU), Darling Ingredients Inc (DAR), BP Prudhoe Bay Royalty Trust (BPT) and Ellington Financial LLC (EFC) have all reached their 3-year lows.


    Safety First Trust Series 2009-2 reached $22.98

      


  • Ron Baron's Baron Partners Fund Fourth Quarter 2014 Commentary

    Baron Partners Fund advanced 5.33% during the fourth quarter of 2014. The Russell Midcap Growth Index, the benchmark against which we compare the performance of this Fund, advanced 5.84% in the period. Baron Partners Fund outperformed the S&P 500 Index, which measures the performance of large cap companies, by 40 basis points in the period. For the full year 2014, the Fund underperformed its benchmark by 164 basis points and the S&P 500 Index by 343 basis points.


    Although it underperformed in 2014, the Fund has outperformed both its benchmark index and the S&P 500 Index on an annualized basis in all relevant periods other than this year since its conversion from a partnership to a mutual fund on April 30, 2003, as well as over the last 3 years, 5 years, 10 years, 15 years, 20 years, and since its inception on January 31, 1992. The businesses in which the Fund has invested have grown significantly this year. Since the Fund’s shares have not kept pace, we believe the Fund is well positioned to outperform, although we obviously can’t guarantee it.

      


  • Baron Funds Comments on BRP Inc

    In the quarter, we increased our position in power sports vehicle company BRP, Inc (TSX:DOO). We believe the recent decline in the stock is an opportunity and current difficulties involving Russian sales, poor weather and a slight delay in moving manufacturing to Mexico should create easy comparisons for FY 2016 (end January 2016) and stronger sentiment in the stock. We believe the company’s strategy has not changed and it continues to innovate and introduce new product while lowering costs. While this strategy will take another two years before full implementation, it should set the stage for growth of revenue, earnings and cash flow and create an even stronger company. Its balance sheet remains strong and management has indicated it will look at the initiation of possible dividends. (David Baron)

    From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.  


  • Baron Funds Comments on Benefitfocus Inc

    The Fund added to its position in Benefitfocus, Inc. (BNFT), a leading provider of cloud-based benefits software. The company offers an integrated suite of solutions to help customers shop, enroll, manage, and exchange benefits information. Benefits are presented in a user-friendly manner that allows insured individuals and their dependents to access all their benefits in one place. The company is experiencing accelerating demand, driven by the Affordable Care Act and a shift towards defined contribution benefits, which requires the enhanced insight and consumer experience offered by modern software applications. We believe that Benefitfocus serves an addressable market more than 100 times larger than its current business, which should allow the company to compound revenue at more than 30% annually. (Neal Rosenberg)

    From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.  


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