Baron Capital got its start investing in small cap stocks. Today, we have 13 Funds across all asset classes, including three small cap Funds. The investment approach is the same, grounded in our long-established, consistently applied methodology developed by founder Ron Baron
). We combine fundamental, bottom-up research with a long-term perspective to find companies with open-ended growth opportunities, sustainable competitive advantages, and visionary management, at an attractive valuation.
Our three small cap Funds, Baron Growth Fund, Baron Small Cap Fund, and Baron Discovery Fund, are each managed by a different portfolio manager. From our decades of researching small cap companies, we have learned to identify what we believe are businesses with unique opportunities for growth. Many of these businesses are run by executives with a significant personal stake, and who are typically eager to meet with us to explain their strategy for growth and to allow us to judge them and their ability to attract and retain exceptional employees. We also think that there are more hidden gems in the small cap space, since these stocks typically are not widely covered on Wall Street. We employ a consistent investment approach in researching and managing all of our Funds. At the same time, each of our small cap Funds has distinct characteristics. As of June 30, 2014, overlap in the holdings among the three funds ranged from 8% to 23%. Continue Reading »