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. Continue Reading »