GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Baron Funds Second Q2 2014 Shareholder Letter

July 12, 2014 | About:

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 (Trades, Portfolio). 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%.

Baron Growth Fund

Baron Growth Fund is managed by Ron Baron (Trades, Portfolio), who has been at the helm since its December 1994 inception. Ron brings 44 years of research experience to his investments in the small cap growth category. We build the portfolio one stock at a time, looking for businesses with the potential to double in size over the next fourBaron 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 (Trades, Portfolio). 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%.

Baron Growth Fund

Baron Growth Fund is managed by Ron Baron (Trades, Portfolio), who has been at the helm since its December 1994 inception. Ron brings 44 years of research experience to his investments in the small cap growth category.

Continue reading the shareholder letter here.


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK