Baron Funds Comments on Inovalon Holdings

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Nov 14, 2016

The Fund added to its position in Inovalon Holdings, Inc. (NASDAQ:INOV), a health care data and analytics company. The foundation of the company is a proprietary data set which contains more than 11.3 billion medical events from 132 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. The company addresses a $14 billion annual opportunity in its core markets, with growth driven by the need to reduce inexorable health care cost inflation and the shift to value-based health care from consumption-based health care. Inovalon has recently announced beachhead relationships with Quest Diagnostics to enter the provider market, with Kindred Healthcare to enter the post-acute care market, and with Bristol-Myers to enter the pharma market. We believe that addressing these adjacencies can increase Inovalon’s total addressable market by three-to-four times. (Neal Rosenberg)

From Ron Baron (Trades, Portfolio)'s Barons Partners Fund third-quarter 2016 commentary.