Hero Background Image

Baron Focused Growth Fund

Symbol BFGUXCUSIP: 06828M785
Symbol BFGUXCUSIP: 06828M785
S-M
Small- to Mid-Cap Growth

Nav

$51.70

Daily Change $0.60 (1.17%)
As of 02/04/2025

Net Assets

$2.11 B

As of 12/31/2024

Morningstar Rating™

As of 12/31/2024

Morningstar Medalist Rating™

medal Logo

GOLD

Inception date

05/31/1996

Prices & Performance

PricesAs of 02/04/2025

NAVDaily Change ($)Daily Change (%)MTDQTDYTD
$51.70$0.601.17%0.47%4.44%4.44%
NAV$51.70
Daily Change ($)$0.60
Daily Change (%)1.17%
MTD0.47%
QTD4.44%
YTD4.44%

PerformanceAs of 12/31/2024

Portfolio or IndexQTD1YTD11 Year3 Years5 Years10 YearsSince Inception 05/31/1996
BFGUX - Baron Focused Growth Fund - R614.48%29.85%29.85%6.04%25.92%18.31%13.89%
Russell 2500 Growth Index2.43%13.90%13.90%-0.02%8.08%9.45%8.24%
Russell 3000 Index2.63%23.81%23.81%8.01%13.86%12.55%9.79%

Performance InformationAs of 12/31/2024

Performance statistics3 Years5 Years10 Years
Standard Deviation (%)21.8730.6624.08
Sharpe Ratio0.090.760.69
Alpha (%)6.1717.819.30
Beta0.851.060.97
R-Squared (%)79.9866.8065.69
Tracking Error (%)10.4117.7214.11
Information Ratio0.581.010.63
Upside Capture (%)89.67128.38112.54
Downside Capture (%)71.9280.8982.09
Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Focused Growth Fund's(BFGUX) benchmark Russell 2500 Growth Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

Risk & Return12/31/2021 - 12/31/2024

1 Source: FactSet SPAR.

Portfolio Holdings & Characteristics

HoldingsAs of 12/31/2024

HoldingSector% of Net Assets
Tesla, Inc.
Tesla, Inc. (TSLA) manufactures electric vehicles, including a luxury sedan and CUV (S/X), a mid-sized luxury sedan and hatchback (3/Y), and pickup and semi-trucks. It is also ramping up internal battery cell production, energy solutions, and software offerings such as full self-driving and insurance.
We expect Tesla will continue to grow its automotive business through international production capacity and product expansion. Tesla's vertical integration, technology innovation, brand, profitability, and growing supplier support offer unique and durable growth opportunities that are hard to replicate. In addition, Tesla's energy and software expertise is broadening the industrial opportunity to large and profitable revenue avenues that were previously locked in the legacy vehicle architecture, such as autonomous driving, robotics, insurance, and other AI use cases.
Consumer Discretionary11.7%
Space Exploration Technologies Corp.
Space Exploration Technologies Corp. (SPACEX.A) designs, manufactures, and launches rockets, satellites, and spacecrafts. Its ultimate goal is to make humanity multi-planetary. Products include reusable orbital launch offerings and a broadband service leveraging its satellite constellation, Starlink.
We believe SpaceX will continue to drive down the cost of space launches and capture market share with its unique, reliable, and improving reusable launch capabilities. As costs decline, we also expect demand for access to space to increase. By leveraging its launch cost leadership, vertical integration, and innovative design approach, we think SpaceX will have an advantage in building and operating its rapidly expanding satellite-based broadband services, creating an even more attractive growth profile for the company.
Industrials11.4%
Spotify Technology S.A.
Spotify Technology S.A. (SPOT) is the world's leading music streaming service, with approximately 40% market share. The company monetizes through several tiers of subscriptions, advertising, and miscellaneous a la carte pricing. 
With over 252 million paying subscribers, Spotify has created a two-sided marketplace where creators can monetize their work and consumers can stream music. Longer term, we expect the company to grow to over 1 billion subscribers (from 640 million today) and improve margins materially through advertising, its artist promotions marketplace, and improved cost discipline. On the product side, we expect Spotify to continually improve its value proposition through additional features and expansion into adjacencies such as audiobooks.
Communication Services5.5%
Vail Resorts, Inc.
Vail Resorts, Inc. (MTN) is the largest ski resort operator in North America. It owns 42 resorts in the U.S., Canada, Switzerland, and Australia, including Vail and Breckenridge in Colorado, Whistler Blackcomb in Canada, and Stowe in Vermont. Its RockResorts hotel brand offers luxury ski lodging properties.
Vail has been upgrading its resorts to offer new and higher-quality services and amenities and summer recreational activities, which should attract more visitors. Vail is focused on growing season pass sales and has been acquiring resorts and forming partnerships to enhance the attractiveness of its season pass. We think price increases for season passes should not impact retention rates. The company has a strong balance sheet and free cash flow profile that it is using for acquisitions, investments in its resorts, dividend increases, share buybacks, and debt reduction.
Consumer Discretionary4.6%
Interactive Brokers Group, Inc.
Interactive Brokers Group, Inc. (IBKR) is an automated global electronic broker. It provides low-cost execution, clearing, and settlement of trades for retail and institutional customers across multiple asset classes and currencies.
Interactive Brokers is gaining share because of its advanced technology, quality of execution, and low trading costs. We expect the company to continue growing rapidly through international expansion and as domestic RIAs depart traditional institutions to launch their own firms. Interactive Brokers' competitive advantage comes from automation through best-in-class software engineering, which enables it to offer industry-low costs to customers. Founder and Chairman Thomas Peterffy is well regarded and is the company's largest shareholder.
Financials4.5%
Guidewire Software, Inc.
Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global P&C insurance industry.
Guidewire is a small player in a vast addressable market and has been benefiting from the need for P&C insurers to upgrade 30-year-old systems. The company offers best-in-class functionality, as evidenced by its growing installed base and near-100% retention rates. The company has passed the midpoint of its cloud transition, and we expect to see accelerating revenue, expanding margins, and improving free cash flow over the next several years. We believe that recent M&A in the vertical software space supports a meaningful value creation opportunity for shareholders.
Information Technology4.2%
Hyatt Hotels Corporation
Hyatt Hotels Corporation (H) is a global hospitality company with 1,363 Hyatt-branded properties representing 326,845 keys. The company's brands include Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Place, and Hyatt Summerfield Suite. It derives 85% of EBITDA from fees and 15% from owned assets.
We believe Hyatt has a significant opportunity to market more of its brands globally, given an undersupply of rooms across the world. Compared to peers, Hyatt has the lowest global brand penetration and the largest pipeline of unit growth. We believe its asset-light strategy and strong balance sheet, coupled with robust pricing for hotel assets, give Hyatt an opportunity to generate strong growth in earnings and cash flow, which the company could use for buybacks and tuck-in acquisitions.
Consumer Discretionary4.1%
On Holding AG
On Holding AG (ONON), a Swiss premium performance sports brand specializing in footwear (roughly 95% of revenue), is one of the fastest-growing scaled athletic wear companies in the world. The company was founded in 2010 and continues to gain market share in the athletic footwear category. 
On is an innovative lifestyle brand blending technical performance and fashion/lifestyle elements to deliver a lineup of footwear, apparel, and accessories. We believe On is still early in its lifecycle as it expands its product line and distribution network. On benefits from strong brand loyalty, its commitment to sustainability, a focus on innovation, and a highly complementary, multi-channel distribution strategy. The sportswear market is a $355-billion-and-growing opportunity, of which On has a small share, implying a long growth runway.
Consumer Discretionary4.0%
Arch Capital Group Ltd.
Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company providing property & casualty insurance, reinsurance, and mortgage insurance.
Arch is led by an experienced management team with a successful track record across insurance cycles. The company excels at underwriting specialized policies and can nimbly shift its business mix to target the most profitable lines as market conditions change. It operates in a large global market and benefits from favorable pricing trends across many of its product lines. In our view, management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility.
Financials3.9%
CoStar Group, Inc.
CoStar Group, Inc. (CSGP) is the leading provider of information and marketing services to the commercial real estate industry.
CoStar has built a proprietary database through data collection over a 20-year period, creating high barriers to entry. We think CoStar's suite should grow at mid-teens rates, and we believe its Loopnet marketing platform can grow even faster. Its Apartments.com platform is the dominant multi-family internet listing service and should grow revenue by more than 20%. CoStar is starting to expand into residential, creating additional significant growth opportunities. Its balance sheet and cash generation create M&A optionality.
Real Estate3.5%
Total
Total
57.4%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Contributors / DetractorsQuarterly as of 12/31/2024

Top ContributorsAverage WeightContribution
Tesla, Inc.10.60%5.08%
Space Exploration Technologies Corp.8.93%4.62%
Interactive Brokers Group, Inc.4.94%1.39%
Spotify Technology S.A.6.09%1.36%
Shopify Inc.3.55%1.10%
Source: FactSet PA.

GICS Sector BreakdownAs of 12/31/2024

Sector

Consumer Discretionary

39.5%

Financials

15.6%

Industrials

13.5%

Information Technology

10.9%

Communication Services

7.8%

Real Estate

5.2%

Health Care

5.1%

Cash & Cash Equivalents

2.3%

Sub-Industry

12/31/2024
Automobile Manufacturers11.70%
Aerospace & Defense11.40%
Hotels, Resorts & Cruise Lines7.60%
Application Software7.50%
Movies & Entertainment6.70%
Footwear6.50%
Financial Exchanges & Data6.20%
Investment Banking & Brokerage5.40%
Leisure Facilities4.60%
Casinos & Gaming4.50%
Property & Casualty Insurance3.90%
Health Care Equipment3.50%
Real Estate Services 3.50%
Internet Services & Infrastructure3.40%
Apparel, Accessories & Luxury Goods2.50%
024681012
Automobile Manufacturers11.70%
Aerospace & Defense11.40%
Hotels, Resorts & Cruise Lines7.60%
Application Software7.50%
Movies & Entertainment6.70%
Footwear6.50%
Financial Exchanges & Data6.20%
Investment Banking & Brokerage5.40%
Leisure Facilities4.60%
Casinos & Gaming4.50%
Property & Casualty Insurance3.90%
Health Care Equipment3.50%
Real Estate Services 3.50%
Internet Services & Infrastructure3.40%
Apparel, Accessories & Luxury Goods2.50%
024681012

Portfolio CharacteristicsAs of 12/31/2024

DescriptionBaron Focused Growth FundRussell 2500 Growth Index
Inception DateMay 31, 1996
Net Assets$2.11 billion
# of Issuers / % of Net Assets30 / 97.7%
Turnover (3 Year Average)11.35%
Active Share98.6%
Median Market Cap$25.27 billion$1.52 billion
Weighted Average Market Cap$222.97 billion$7.15 billion
R6 Shares
CUSIP06828M785
Expense Ratio1.06%
Current Expense Ratio Date12/31/2023
EPS Growth (3-5 year forecast)19.3%15.4%
Price/Earnings Ratio (trailing 12-month)29.824.1
Price/Book Ratio5.44.4
Price/Sales Ratio4.12.0
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Distributions

Record DateEx DatePayable DateIncomeReturn of CapitalShort-Term Capital GainLong-Term Capital GainTotalRe-Invest NAVCalendar-Year Return
09/26/202209/27/202209/28/2022$0.0000$0.0000$0.0000$3.5144$3.5144$31.65-28.11%
11/22/202111/23/202111/24/2021$0.0000$0.0000$0.0000$5.5014$5.5014$46.5019.15%
09/22/202109/23/202109/24/2021$0.0000$0.0000$0.0000$1.4145$1.4145$46.9919.15%
11/23/202011/24/202011/25/2020$0.0000$0.0000$0.0000$0.9837$0.9837$38.95122.78%
09/23/202009/24/202009/25/2020$0.0000$0.0000$0.0000$0.2541$0.2541$32.65122.78%
For estimated distributions, visit the Tax Center
Ron and David Baron in NYC office
Investor Series

Baron Focused Growth Fund: A Focused, Highly Differentiated Investment Approach

Learn more about the investment approach for Baron Focused Growth Fund.