Ron Baron

Ron Baron

Last Update: 05-16-2016

Number of Stocks: 296
Number of New Stocks: 23

Total Value: $18,898 Mil
Q/Q Turnover: 5%

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

Ron Baron Watch

  • Baron Funds Comments on Bristol-Myers Squibb

    After watching and following Bristol-Myers Squibb (NYSE:BMY) for the better part of the last three years we used the weakness in the stock created by the sell-off in the biotech sector to finally initiate a small to medium size position. Bristol specializes in small molecule drugs known as biologics, which are harder for the generic drug companies to replicate, and we are particularly excited about its lead immuno-oncology asset, Opdivo which has shown incredible promise in the treatment of lung cancer, while growing 10-20% month over month since its approval in 2015. Based on our belief in the effectiveness of the PD-1 class drugs, we think there is a high likelihood that Bristol will be able to gain approvals and expand the usage of Opdivo in other types of cancers (melanoma, renal, head and neck, hodgkin’s lymphoma, etc.) and could potentially change the paradigm of cancer’s treatment worldwide.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Illumina Inc.

    Shares of Illumina, Inc. (NASDAQ:ILMN) detracted from performance in the first quarter. Illumina is the leading provider of DNA sequencing technology to academic and commercial laboratories. Although fourth quarter financial results were solid, management tempered expectations for the first quarter HiSeq X and benchtop instrument sales. We continue to believe Illumina has a long runway for growth, driven by increasing adoption of DNA sequencing in clinical markets such as cancer screening, diagnosis, and treatment.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Regeneron Pharmaceuticals

    Shares of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) fell in the first quarter as a result of the significant sell-off in the biotech/pharma space and a miss on the top and bottom lines versus the expected fourth quarter results. 2016 guidance for Eylea (its lead ophthalmology asset) was sharply down from 2015. Launch of its new cardiovascular drug, Praluent, has been slow, and it lost a court case involving the drug. We have trimmed our position but decided that Regeneron deserved benefit of the doubt. Given Sanofi’s 22% ownership and its reliance on company for R&D productivity, we believe Regeneron enjoys a privileged position in the biotech universe.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Alexion Pharmaceuticals

    Shares of Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) fell in the first quarter as a result of the significant correction in the biotech/pharma space. Alexion develops treatments for rare diseases. Its high foreign exchange exposure and high multiple also pressured the stock. Overall, we believe there have been no significant changes to the fundamentals of Alexion’s investment thesis (innovative, exceptionally well-managed company with unique assets and pricing power) and we retain conviction.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Alexion Pharmaceuticals

    Shares of Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) fell in the first quarter as a result of the significant correction in the biotech/pharma space. Alexion develops treatments for rare diseases. Its high foreign exchange exposure and high


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on LinkedIn Corp

    LinkedIn Corp. (NYSE:LNKD) is the world’s largest online professional network. It has three business segments: Hiring Solutions, Marketing Solutions, and Premium Subscriptions, each serving different customers. Despite strong 4Q15 results, shares were down in the first quarter due to a weak 2016 outlook. After several quarters of inconsistent results, we believe management is finding it increasingly difficult to manage the complexity of three businesses. We exited the position.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Amazon.com

    Shares of Amazon.com, Inc. (NASDAQ:AMZN), the world’s largest retailer, declined in the first quarter despite reporting strong revenue growth likely due to retail margins being lower than anticipated. Amazon has responded by instituting substantial fulfillment and supply chain fee increases for merchants on the platform. We estimate that these fee increases should start to alleviate the recent pressure on retail margins in the upcoming quarters. Amazon’s other major business segment, Amazon Web Services (AWS) continues to gain traction with enterprise customers, and over time, we expect AWS to be the larger contributor to value creation for the company.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on ASML Holding N.V.

    ASML Holding N.V. (NASDAQ:ASML) is a unique, near-monopoly company in semiconductor manufacturing. ASML’s equipment, which prints the tiniest circuits for chips, is used by nearly every manufacturer. Over the next few years, ASML plans to roll out equipment that can print circuits smaller than any other company. We believe over time its equipment will become indispensable and earnings will grow rapidly. Shares were up in the first quarter after management stated on its earnings call that it expects equipment orders to accelerate in the second half of 2016.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on YUM! Brands

    Shares of YUM! Brands, Inc., (NYSE:YUM) a global operator and franchisor of the Pizza Hut, Taco Bell, and KFC restaurant brands, were up in the first quarter as the date of its spin-out of its struggling Chinese business approaches. News that private equity funds are considering investing in YUM! China lent support to estimates around the value of that business. We believe the ex-China operation is a high-quality, capital-efficient franchising business with continued growth potential and the Chinese business offers some optionality for a turn-around.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Equinix Inc.

    Equinix, Inc., (NASDAQ:EQIX) an operator of carrier-neutral data centers, continued to make progress on several fronts: 1) the closing of its Telecity acquisition in Europe, 2) a strong finish to 2015 with organic growth beating analyst expectations, and 3) maintaining financial flexibility and a strong balance sheet in an uncertain market. In addition, supply/demand in the data center space is favorable and price accommodative with consolidation capping supply and cloud and outsourcing lifting demand. All of those contributed to an increase in the stock price in the first quarter.


    From Baron Fifth Avenue Growth Fund first quarter commentary 2016.

      


  • Baron Funds Comments on Brookfield Asset Management

    Shares of Brookfield Asset Management, Inc. (NYSE:BAM) rose in the first quarter due to strong conditions in most of its business segments. The company is a global alternative asset manager with approximately $200 billion in assets under management, with a focus on real estate property, infrastructure, renewable energy, and private equity. A high quality portfolio, stable cash flows and attractive growth opportunities, global scale, a quality balance sheet, and an excellent management team with significant insider ownership support our favorable view.


    From Baron Fifth Avenue Growth Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Facebook

    Shares of Facebook, Inc. (NASDAQ:FB), the world’s largest social network, rose in the first quarter, driven by improving consumer engagement and monetization. Facebook is the largest beneficiary of the shift in consumer engagement to mobile. Facebook is using its leadership position to provide global advertisers targeted marketing capabilities at scale. Facebook is in the early stages of monetizing online video and Instagram, which are starting to contribute to incremental revenue growth. WhatsApp and Oculus provide additional avenues for growth opportunities.


    From Baron Fifth Avenue Growth Fund first quarter 2016 commentary.

      


  • Ron Baron Exits Towers Watson

    Guru Ron Baron (Trades, Portfolio) sold his 762,284-share stake in Towers Watson & Co. (NASDAQ:TW) in the first quarter.


    In July 2015, Willis Group Holdings PLC and Towers Watson announced plans to form a $17 billion global professional services firm by merging the two companies. In early January, the company announced that the merger was successful and was conducting business as Willis Towers Watson, a leading global advisory, broking and solutions company.

      


  • Baron Funds Comments on Glaukos Corporation

    Shares of Glaukos Corporation (NYSE:GKOS) declined in the first quarter as a result of the massive correction in the biotech/pharma space. Glaukos, which manufactures stents to relieve glaucoma pressure, expects 26% to 30% growth in 2016, which we think will drive revenue to $90 millin to $93 million. While major label expansion to deliver Glaukos’ iStents without cataract surgery (current FDA approval) is still some years away, we retain conviction because of the growth opportunity presented by the rising incidence of glaucoma as a result of the aging U.S. population.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Pacira Pharmaceuticals Inc.

    Pacira Pharmaceuticals Inc. (NASDAQ:PCRX) is a specialty pharmaceutical company that sells a drug for local surgical analgesia (an anesthetic) called EXPAREL. At the end of the third quarter of 2015, Pacira received a favorable resolution of certain FDA issues, and we re-established our investment at the lower levels caused by the prior regulatory uncertainty. In our opinion, shares were down in the first quarter due to the general negative industry dynamics around pharmaceutical companies.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on TerraForm Global Inc.

    Shares of TerraForm Global Inc. (NASDAQ:GLBL), an owner of renewable energy power plants in emerging markets, fell during the quarter due to uncertainty related to the implications of a potential bankruptcy of parent company SunEdison (SUNEQ). In addition, TerraForm Global was unable to execute on transactions to create its formation portfolio. These factors make the company difficult to value, and the stock sold off as a result. We continue to hold the stock as we believe the company is solvent and has enough liquidity to continue.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Just Eat PLC

    Shares of Just Eat PLC (LSE:JE.), the leading online food takeout marketplace in Europe, Latin America, and Canada, were down in the first quarter despite reporting second half of 2015 results that beat consensus analyst expectations. Potential entry by Uber into restaurant delivery in the U.K., Just Eat’s largest market, is driving heightened competitive concerns. We believe Just Eat competes in a different market segment from Uber and other delivery-oriented companies. We think Just Eat is the leader in a winner-take-most/all business that will not be meaningfully disrupted by new competitors.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Facebook Inc.

    Shares of Facebook Inc. (NASDAQ:FB), the world’s largest social network, rose in the first quarter, driven by improving consumer engagement and monetization. Facebook is the largest beneficiary of the shift in consumer engagement to mobile. Facebook is using its leadership position to provide global advertisers targeted marketing capabilities at scale. Facebook is in the early stages of monetizing online video and Instagram, which are starting to contribute to incremental revenue growth. WhatsApp and Oculus provide additional avenues for growth opportunities.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Mellanox Technologies

    Mellanox Technologies (NASDAQ:MLNX) supplies semiconductor-based interconnect solutions and services. Strong fourth quarter results re-instilled investor confidence in Mellanox’s ability to grow profitably. In addition, the completion of its EZchip acquisition and adjusted guidance laid out a strong financial case for this combination. We view Mellanox’s Ethernet business as a significant open-ended opportunity. We expect Mellanox to be a high-end market leader and protect its high margin business model with strong innovation and product leadership.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Check Point Software Technologies Ltd.

    Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a leading cyber security vendor. Fears of slowing cyber security spending abated when Check Point reported a solid close to its year and showed early signs of strength in its next generation software products with subscription revenue growth acceleration. As a leader in the cyber security market, with a large cash balance and strong cash generation, we see continued opportunity for profitable growth.


    From the Baron Global Advantage Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Cetip SA Mercados Organizados

    Cetip SA Mercados Organizados (BSP:CTIP3) administers over-the-counter markets in Brazil for trading and registration of fixed income securities, derivatives and auto liens. The stock increased after the announcement of a takeover offer from BM&F Bovespa at a premium valuation. Shares also benefited from appreciation of the Brazilian real against the U.S. dollar and strong quarterly financial results. We continue to own the stock because we expect the merger with BM&F Bovespa will create significant shareholder value.

      


  • Baron Funds Comments on Check Point Software Technologies Ltd.

    Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a leading cyber security vendor. Fears of slowing cyber security spending abated when Check Point reported a solid close to its year and showed early signs of strength in its next generation software products with subscription revenue growth acceleration. As a leader in the cyber security market, with a large cash balance and strong cash generation, we see continued opportunity for profitable growth.

      


  • Baron Funds Comments on TAL Education Group

    TAL Education Group (NYSE:XRS) is a leading Chinese K-12 tutoring company, operating over 300 learning centers in two dozen cities across China. Shares of TAL rose in the first quarter, driven by growth in student enrollments of more than 50%. We maintain conviction in TAL Education Group as we see its significant opportunity to gain market share in after-school tutoring by expanding existing learning centers, opening new learning centers in existing cities and expanding into new cities while generating strong cash flow.

      


  • Baron Funds Comments on Tesla Motors

    We had an opportunity to add to our investment in Tesla Motors, Inc. (NASDAQ:TSLA) earlier this year. We had never previously invested in a car manufacturer. Tesla is not a traditional car manufacturer. We think that the Model 3 launch that occurred several weeks ago can show you why. On the last day of the quarter, Tesla launched Model 3, a car intended to bring the EV promise to the mass market. Its starting price is $35,000. One of our analysts attended the event and returned eager to own one. During the first week, Tesla received 325,000 orders for this car with no sales and marketing efforts. The number now is closer to 400,000 (or $18 billion of order backlog). This is equivalent to 24 million people around the world ordering an iPhone they will get in two years and never had an opportunity to see first hand. This is the biggest product launch in history. It is rare to find a company that is transforming the face of a large industry and Tesla is doing just that, taking the car industry into the 21st century, making cars better, safer and cheaper all at once. (Gilad Shany)


    From the Baron Focused Growth Fund first quarter 2016 commentary.

      


  • Baron Funds Comments on Inovalon Holdings

    The Fund added to its position in Inovalon Holdings, Inc. (NASDAQ:INOV), a health care data and analytics company in the period. The foundation of the company is a proprietary data set which contains more than 9.2 billion medical events from 130 million unique patients. This data powers Inovalon’s advanced analytics, which help insurers identify gaps in care, quality, data integrity and financial performance. Clients leverage Inovalon’s intervention platforms to drive improvement in clinical and quality outcomes, utilization, and financial performance across the health care landscape.


    Inovalon serves a vast addressable market. The company addresses a $14 billion annual opportunity, and we believe that logical adjacencies can increase the total addressable market by 3–4 times. We are particularly excited by a new relationship with Quest Diagnostics, which can bring Inovalon’s analytics to the commercial market. Secular drivers, particularly the need to reduce inexorable health care cost inflation and a shift to value based from consumption based health care, will help to sustain Inovalon’s growth. (Neal Rosenberg)

      


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