UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-5032
BARON INVESTMENT FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)
767 Fifth Avenue, 49th Floor
New York, NY 10153
(Address of Principal Executive Offices) (Zip Code)
Patrick M. Patalino, General Counsel
c/o Baron Investment Funds Trust
767 Fifth Avenue, 49th Floor
New York, NY 10153
(Name and Address of Agent for Service)
(Registrant’s Telephone Number, including Area Code): 212-583-2000
Date of fiscal year end: September 30
Date of reporting period: March 31, 2024
Item 1. Reports to Stockholders.
Baron Asset Fund
Baron Growth Fund
Baron Small Cap Fund
Baron Opportunity Fund
Baron Fifth Avenue Growth Fund
Baron Discovery Fund
Baron Durable Advantage Fund
Baron Funds®
Baron Investment Funds Trust
Semi-Annual Financial Report
DEAR BARON INVESTMENT FUNDS TRUST SHAREHOLDER:
In this report, you will find unaudited financial statements for Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund (the Funds) for the six months ended March 31, 2024. The U.S. Securities and Exchange Commission (the SEC) requires mutual funds to furnish these statements semi-annually to their shareholders. We hope you find these statements informative and useful.
We thank you for choosing to join us as fellow shareholders in Baron Funds. We will continue to work hard to justify your confidence.
Sincerely,
| | | | |
| |  | |  |
Ronald Baron Chief Executive Officer May 21, 2024 | | Linda S. Martinson Chairman, President and Chief Operating Officer May 21, 2024 | | Peggy Wong Chief Financial Officer May 21, 2024 |
This Semi-Annual Financial Report is for the Baron Investment Funds Trust, which currently has seven series: Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund. If you are interested in Baron Select Funds, which contains the Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron WealthBuilder Fund, Baron Health Care Fund, Baron FinTech Fund, Baron New Asia Fund, and Baron Technology Fund series, please visit the Funds’ website at baronfunds.com or contact us at 1-800-99BARON.
The Funds’ Proxy Voting Policy is available without charge and can be found on the Funds’ website at baronfunds.com, by clicking on the “Regulatory Documents” link at the bottom left corner of the homepage or by calling 1-800-99BARON and on the SEC’s website at sec.gov. The Funds’ most current proxy voting record, Form N-PX, is also available on the Funds’ website and on the SEC’s website.
The Funds file their complete schedules of Portfolios of Investments with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at sec.gov. Portfolios of Investments current to the most recent quarter are also available on the Funds’ website.
Some of the comments contained in this report are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as “estimate,” “may,” “expect,” “should,” “could,” “believe,” “plan” and other similar terms. We cannot promise future returns and our opinions are a reflection of our best judgment at the time this report is compiled.
The views expressed in this report reflect those of BAMCO, Inc. (BAMCO or the Adviser) only through the end of the period stated in this report. The views are not intended as recommendations or investment advice to any person reading this report and are subject to change at any time without notice based on market and other conditions.
Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. For more complete information about Baron Funds, including charges and
expenses, call, write or go to baronfunds.com for a prospectus or summary prospectus. Read them carefully before you invest or send money. This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds, unless accompanied or preceded by the Funds’ current prospectus or summary prospectus.
| | |
| Baron Asset Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON ASSET FUND (RETAIL SHARES)
INRELATIONTOTHE RUSSELL MIDCAP GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception
(June 12,
1987) | |
Baron Asset Fund — Retail Shares1, 2 | | | 19.05% | | | | 17.77% | | | | 1.83% | | | | 9.70% | | | | 10.77% | | | | 11.35% | |
Baron Asset Fund — Institutional Shares1, 2, 3 | | | 19.20% | | | | 18.08% | | | | 2.10% | | | | 9.98% | | | | 11.06% | | | | 11.47% | |
Baron Asset Fund — R6 Shares1, 2, 3 | | | 19.20% | | | | 18.08% | | | | 2.09% | | | | 9.98% | | | | 11.06% | | | | 11.46% | |
Russell Midcap Growth Index1 | | | 25.42% | | | | 26.28% | | | | 4.62% | | | | 11.82% | | | | 11.35% | | | | 10.40% | 4 |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 10.43% | |
| 1 | The Russell Midcap® Growth Index measures the performance of medium-sized U.S. companies that are classified as growth. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell Midcap® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
| 4 | For the period June 30, 1987 to March 31, 2024. |
2
| | |
| March 31, 2024 (Unaudited) | | Baron Asset Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
Gartner, Inc. | | | 9.8% | |
IDEXX Laboratories, Inc. | | | 6.5% | |
CoStar Group, Inc. | | | 4.8% | |
Mettler-Toledo International Inc. | | | 4.6% | |
Verisk Analytics, Inc. | | | 4.5% | |
Arch Capital Group Ltd. | | | 4.1% | |
FactSet Research Systems Inc. | | | 3.4% | |
Guidewire Software, Inc. | | | 3.3% | |
Fair Isaac Corporation | | | 3.3% | |
Roper Technologies, Inc. | | | 2.9% | |
| |
Total | | | 47.2% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Asset Fund1 gained 19.05%, while the Russell Midcap Growth Index gained 25.42% and the S&P 500 Index gained 23.48%.
Baron Asset Fund invests primarily in medium-sized growth companies for the long term, using a value-oriented purchase discipline. The Fund purchases companies that we believe have durable competitive advantages, strong financial characteristics, and exceptional management; and operate in industries with favorable growth characteristics.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period. Improving inflation data coupled with dovish comments from the U.S. Federal Reserve (the Fed) spurred an “everything rally.” In a significant shift from its earlier stance, the Fed suggested it was planning three interest rates cuts over 2024. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Information Technology, Health Care, and Financials contributed the most. No sector detracted.
Gartner, Inc. was the top contributor. Shares of this provider of syndicated research rose on solid financial results, with strength in its core subscription research and conferences businesses more than offsetting a decline in lead generation services. We believe Gartner will emerge as a key decision support resource for every company evaluating how AI could impact its business. We expect Gartner’s sustained revenue growth and focus on cost control to drive margin expansion and enhanced free-cash-flow generation. Its balance sheet is in excellent shape and can support aggressive repurchases and bolt-on acquisitions.
The top detractor was TransUnion. Shares of this consumer credit bureau underperformed primarily as a result of trading activity after the company reported third quarter financial results below consensus expectations and reduced full-year guidance. Management said it believed the new financial guidance was highly achievable and aired plans to cut costs to improve margins. We continued to own the stock, which subsequently recovered following improved fourth quarter earnings growth as cyclical headwinds abated and the company continued to integrate recent acquisitions.
As long-term investors who have lived through multiple market cycles, we have learned not to try to predict the unpredictable. Instead, we focus on fundamentals: industry-leading companies benefiting from secular growth drivers, strong competitive positions, and exceptional management teams. We believe our companies will revert to historic growth rates and earnings will increase. Stocks should also revert to trading at appropriate multiples. We believe higher earnings and multiples will result in strong returns for the portfolio.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
3
| | |
| Baron Growth Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON GROWTH FUND (RETAIL SHARES)
INRELATIONTOTHE RUSSELL 2000 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception
(December 31,
1994) | |
Baron Growth Fund — Retail Shares1, 2 | | | 13.50% | | | | 12.17% | | | | 3.61% | | | | 11.40% | | | | 10.53% | | | | 12.82% | |
Baron Growth Fund — Institutional Shares1, 2, 3 | | | 13.65% | | | | 12.46% | | | | 3.87% | | | | 11.69% | | | | 10.81% | | | | 12.97% | |
Baron Growth Fund — R6 Shares1, 2, 3 | | | 13.65% | | | | 12.46% | | | | 3.87% | | | | 11.69% | | | | 10.81% | | | | 12.97% | |
Russell 2000 Growth Index1 | | | 21.30% | | | | 20.35% | | | | (2.68)% | | | | 7.38% | | | | 7.89% | | | | 7.88% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 10.75% | |
| 1 | The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell 2000® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
4
| | |
| March 31, 2024 (Unaudited) | | Baron Growth Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
MSCI Inc. | | | 10.4% | |
Arch Capital Group Ltd. | | | 10.4% | |
Gartner, Inc. | | | 8.8% | |
FactSet Research Systems Inc. | | | 6.8% | |
Kinsale Capital Group, Inc. | | | 6.5% | |
CoStar Group, Inc. | | | 6.2% | |
Vail Resorts, Inc. | | | 5.5% | |
Primerica, Inc. | | | 4.7% | |
Choice Hotels International, Inc. | | | 4.7% | |
ANSYS, Inc. | | | 4.3% | |
| |
Total | | | 68.2% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Growth Fund1 increased 13.50%, while the Russell 2000 Growth Index increased 21.30% and the S&P 500 Index increased 23.48%.
Baron Growth Fund invests primarily in small-sized U.S. growth companies for the long term. Through independent research, we utilize an investment approach that we believe allows us to look at a business’s fundamental characteristics and beyond the current market environment. We invest based on the potential
profitability of a business at what we believe are attractive valuations.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period. Improving inflation data coupled with dovish comments from the U.S. Federal Reserve (the Fed) spurred an “everything rally.” In a significant shift from its earlier stance, the Fed suggested it was planning three interest rates cuts over 2024. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Financials, Information Technology, and Real Estate contributed the most. Communication Services detracted.
Gartner, Inc., a provider of syndicated research, contributed the most to performance. Gartner’s core subscription research businesses compounded at attractive rates, and we believe growth is poised to accelerate. We believe Gartner will emerge as a critical decision support resource for every company evaluating the opportunities and risks of AI for its business. We expect this development to provide a tailwind to Gartner’s volume growth and pricing realization over time. Gartner’s sustained revenue growth and focus on cost control should drive continued margin expansion and enhanced free-cash-flow generation. The company’s balance sheet is in excellent shape and can support aggressive repurchases and bolt-on acquisitions, in our view.
Iridium Communications Inc. detracted the most. Shares of this satellite-based mobile voice and data communications services vendor fell after Qualcomm unexpectedly terminated an agreement with Iridium to enable direct-to-device (D2D) workloads on Iridium’s network. The decision shook investors’ confidence in Iridium’s D2D opportunity. In addition, SpaceX generated limited headwinds to Iridium’s maritime segment, enhancing competitive risk. We remain investors. Iridium remains a unique satellite asset and operator, with L-band spectrum, global coverage, years of operational experience, relatively new satellite hardware, and hundreds of partners across verticals and geographies. In addition, management has committed to return $3 billion to shareholders between 2023 and 2030, representing a material portion of the current enterprise value.
We believe no one can accurately and consistently predict short-term market movements. Instead, we remain focused on identifying and researching well-managed unique businesses with significant barriers to entry and compelling growth prospects, investing in them at attractive prices, and holding them for the long term.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
5
| | |
| Baron Small Cap Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON SMALL CAP FUND (RETAIL SHARES)
IN RELATIONTOTHE RUSSELL 2000 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since Inception
(September 30,
1997) | |
Baron Small Cap Fund — Retail Shares1, 2 | | | 25.78% | | | | 29.61% | | | | 3.16% | | | | 11.56% | | | | 10.35% | | | | 10.38% | |
Baron Small Cap Fund — Institutional Shares1, 2, 3 | | | 25.94% | | | | 29.97% | | | | 3.42% | | | | 11.84% | | | | 10.64% | | | | 10.54% | |
Baron Small Cap Fund — R6 Shares1, 2, 3 | | | 25.95% | | | | 29.95% | | | | 3.42% | | | | 11.84% | | | | 10.64% | | | | 10.54% | |
Russell 2000 Growth Index1 | | | 21.30% | | | | 20.35% | | | | (2.68)% | | | | 7.38% | | | | 7.89% | | | | 6.36% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 8.66% | |
| 1 | The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell 2000® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
6
| | |
| March 31, 2024 (Unaudited) | | Baron Small Cap Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
Vertiv Holdings Co | | | 8.1% | |
Gartner, Inc. | | | 5.1% | |
Kinsale Capital Group, Inc. | | | 5.1% | |
ICON Plc | | | 4.8% | |
ASGN Incorporated | | | 3.8% | |
Red Rock Resorts, Inc. | | | 3.7% | |
Installed Building Products, Inc. | | | 3.3% | |
SiteOne Landscape Supply, Inc. | | | 3.3% | |
Chart Industries, Inc. | | | 3.0% | |
Guidewire Software, Inc. | | | 2.9% | |
| |
Total | | | 43.1% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Small Cap Fund1 increased 25.78%, while the Russell 2000 Growth Index increased 21.30% and the S&P 500 Index increased 23.48%.
Baron Small Cap Fund invests primarily in small-cap growth companies for the long term. The Fund invests in what we believe are well-run small-cap growth businesses that can be purchased at prices that represent a significant discount to our assessment of future value.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period. Improving inflation data coupled with dovish comments from the U.S. Federal Reserve (the Fed) spurred an “everything rally.” In a significant shift from its earlier stance, the Fed suggested it was planning three interest rates cuts over 2024. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Industrials, Consumer Discretionary, and Information Technology contributed the most. No sector detracted.
Vertiv Holdings Co contributed the most. As one of the leading vendors of thermal management to the data center industry, Vertiv should benefit from the growth in AI, as the corresponding expected increase in the energy density of data centers will require more complex cooling systems. In addition, under its new CEO, Vertiv reported strong margins and free cash flow and is proving itself to be a strong operator with skilled execution. These developments led to multiple expansion as investors gained confidence in the duration of the growth trajectory as well as Vertiv’s ability to capture the opportunity. Longer term, we see upside in earnings power, as Vertiv closes the margin gap with peers and benefits from industry growth.
Fox Factory Holding Corp. was the top detractor. Shares of this leading provider of suspension systems and engineered products for the mountain bike, power sport, and off-road truck categories, declined during the period following an earnings update that indicated uncertain volumes in its bike and aftermarket truck segments. The company’s challenges are mostly attributable to temporary issues such as vehicle production delays associated with the 2023 United Auto Workers strike (now resolved). We believe Fox Factory is protecting its brand positioning and leading innovation within its categories. As near-term demand headwinds dissipate, Fox Factory should return to strong growth rates in the large automotive aftermarket.
Longer term, we believe strongly that our companies will revert to their historic growth rates and earnings will be higher. Stocks will revert to trading at appropriate multiples, which, for the most part, are higher than present, irrespective of where interest rates settle out. We believe the combination of higher earnings and higher multiples will boost stock prices and produce solid returns for the portfolio.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
7
| | |
| Baron Opportunity Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON OPPORTUNITY FUND† (RETAIL SHARES)
INRELATIONTOTHE RUSSELL 3000 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception
(February 29,
2000) | |
Baron Opportunity Fund — Retail Shares1, 2 | | | 32.57% | | | | 46.26% | | | | 2.98% | | | | 19.16% | | | | 15.51% | | | | 9.51% | |
Baron Opportunity Fund — Institutional Shares1, 2, 3 | | | 32.75% | | | | 46.63% | | | | 3.25% | | | | 19.47% | | | | 15.81% | | | | 9.69% | |
Baron Opportunity Fund — R6 Shares1, 2, 3 | | | 32.75% | | | | 46.62% | | | | 3.24% | | | | 19.47% | | | | 15.82% | | | | 9.69% | |
Russell 3000 Growth Index1 | | | 26.90% | | | | 37.95% | | | | 11.54% | | | | 17.82% | | | | 15.43% | | | | 7.15% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 7.77% | |
| † | The Fund’s 3-, 5-, and 10-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future. |
| 1 | The Russell 3000® Growth Index measures the performance of the broad segment of the U.S. equity universe comprised of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell 3000® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser may waive or reimburse certain Fund expenses pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
8
| | |
| March 31, 2024 (Unaudited) | | Baron Opportunity Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
Microsoft Corporation | | | 13.8% | |
NVIDIA Corporation | | | 11.6% | |
Amazon.com, Inc. | | | 6.7% | |
Meta Platforms, Inc. | | | 4.6% | |
CoStar Group, Inc. | | | 3.3% | |
Advanced Micro Devices, Inc. | | | 3.0% | |
Gartner, Inc. | | | 3.0% | |
Tesla, Inc. | | | 3.0% | |
Visa Inc. | | | 2.6% | |
Space Exploration Technologies Corp. | | | 2.4% | |
| |
Total | | | 54.0% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Opportunity Fund1 increased 32.57%, while the Russell 3000 Growth Index increased 26.90% and the S&P 500 Index increased 23.48%.
Baron Opportunity Fund invests primarily in U.S. growth companies that we believe are driving or benefiting from innovation through development of pioneering, transformative, or technologically advanced products and services. The Fund invests in high-growth businesses of any market capitalization, selected for their capital appreciation potential.
Following a three-month dip from late July through October, the markets went on a bull run through to the end of the period, led by the “Magnificent Seven” mega-cap technology stocks. In a significant shift from its earlier stance, the U.S. Federal Reserve (the Fed) suggested it was planning three interest rate cuts over 2024 in light of improving inflation data. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Information Technology, Communication Services, and Health Care contributed the most. Consumer Discretionary detracted slightly.
NVIDIA Corporation contributed the most. Shares of this fabless semiconductor company continued to climb on investor excitement around the growth opportunities presented by generative AI. The technology holds the promise of enabling significant productivity gains across domains such as content creation, coding, and even biologic discovery. We believe NVIDIA’s end-to-end AI platform and leading share in gaming, data centers, and autonomous machines, along with the size of these markets, will enable the company to benefit from durable growth for years to come.
The top detractor was Tesla, Inc. Despite starting delivery of its highly anticipated Cybertruck, shares of this electric vehicle (EV) manufacturer declined as the core automotive segment was pressured by a complex macroeconomic environment, higher interest rates, factory shutdowns, and Tesla’s reductions in the sticker price of its cars. We retain confidence in Tesla’s long-prospects, either through the launch of a lower-priced mass-market car and/or the commercialization of autonomous driving, but, given weak current trends in EV purchases and heightened uncertainty around the leading EV vendors, we trimmed our position.
We believe no one can accurately and consistently predict short-term market movements. Instead, we focus on identifying the secular growth trends and the companies with durable competitive advantages, profitable business models, and long-term-oriented managers driving or riding these trends. We establish and monitor price targets for holdings and target companies using projections of revenues, earnings, and free cash flow and appropriate multiples, and invest at prices where we believe we can produce substantial returns.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
9
| | |
| Baron Fifth Avenue Growth Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON FIFTH AVENUE GROWTH FUND†
(RETAIL SHARES)INRELATIONTOTHE RUSSELL 1000 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception
(April 30,
2004) | |
Baron Fifth Avenue Growth Fund — Retail Shares1, 2 | | | 32.29% | | | | 47.92% | | | | (0.50)% | | | | 10.48% | | | | 12.04% | | | | 9.52% | |
Baron Fifth Avenue Growth Fund — Institutional Shares1, 2, 3 | | | 32.45% | | | | 48.30% | | | | (0.24)% | | | | 10.76% | | | | 12.32% | | | | 9.72% | |
Baron Fifth Avenue Growth Fund — R6 Shares1, 2, 3 | | | 32.42% | | | | 48.27% | | | | (0.26)% | | | | 10.75% | | | | 12.32% | | | | 9.72% | |
Russell 1000 Growth Index1 | | | 27.19% | | | | 39.00% | | | | 12.50% | | | | 18.52% | | | | 15.98% | | | | 11.97% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 10.29% | |
| † | The Fund’s 3- and 5-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future. |
| 1 | The Russell 1000® Growth Index measures the performance of large-sized U.S. companies that are classified as growth. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell 1000® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser waives and/or reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
10
| | |
| March 31, 2024 (Unaudited) | | Baron Fifth Avenue Growth Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
NVIDIA Corporation | | | 14.7% | |
Amazon.com, Inc. | | | 8.5% | |
Meta Platforms, Inc. | | | 7.2% | |
ServiceNow, Inc. | | | 6.8% | |
Shopify Inc. | | | 5.2% | |
Intuitive Surgical, Inc. | | | 4.9% | |
CrowdStrike Holdings, Inc. | | | 4.6% | |
The Trade Desk | | | 3.6% | |
Cloudflare, Inc. | | | 3.6% | |
Snowflake Inc. | | | 3.6% | |
| |
Total | | | 62.6% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Fifth Avenue Growth Fund1 increased 32.29%, while the Russell 1000 Growth Index increased 27.19% and the S&P 500 Index increased 23.48%.
Baron Fifth Avenue Growth Fund focuses on identifying and investing in what we believe are unique companies with durable competitive advantages and the ability to redeploy capital at high rates of return. The portfolio is constructed on a bottom-up basis, with the quality of ideas and conviction level the most important determinants of the size of each investment. We expect our highest conviction businesses to have meaningful weight in the portfolio.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period, led by the “Magnificent Seven” mega-cap technology stocks. In a significant shift from its earlier stance, the U.S. Federal Reserve (the Fed) suggested it was planning three interest rates cuts over 2024 in light of improving inflation data. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Information Technology, Communication Services, and Financials contributed the most. Industrials detracted slightly.
NVIDIA Corporation contributed the most. Shares of this fabless semiconductor company continued to climb on excitement around the growth opportunities presented by generative AI. The technology holds the promise of enabling significant productivity gains across domains such as content creation, coding, and even biologic discovery. We believe NVIDIA’s end-to-end AI platform and leading share in gaming, data centers, and autonomous machines, along with the size of these markets, will enable the company to benefit from durable growth for years to come.
The top detractor was Tesla, Inc. Shares of this electric vehicle manufacturer declined as the core automotive segment was pressured by a complex macroeconomic environment, higher interest rates, factory shutdowns, and Tesla’s reductions in the sticker price of its cars. Nonetheless, Tesla continued to generate sufficient gross profit to support a robust product development plan that can propel the automotive segment higher over time. The company started delivery of its highly anticipated Cybertruck, while the refreshed Model 3 also seemed to be generating strong demand. We retain conviction in this pioneering and innovative company.
As long-term investors who have lived through multiple market cycles, we have learned not to try to predict the unpredictable. Instead of focusing on short-term market gyrations, our goal remains to maximize long-term returns without taking significant risks of a permanent loss of capital. We are optimistic about the prospects of our investments and continue searching for new ideas while remaining patient and investing only when we believe companies are trading significantly below their intrinsic values.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
11
| | |
| Baron Discovery Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON DISCOVERY FUND† (RETAIL SHARES)
INRELATIONTOTHE RUSSELL 2000 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception
(September 30,
2013) | |
Baron Discovery Fund — Retail Shares1, 2 | | | 17.42% | | | | 14.96% | | | | (6.96)% | | | | 8.68% | | | | 10.28% | | | | 12.30% | |
Baron Discovery Fund — Institutional Shares1, 2 | | | 17.58% | | | | 15.27% | | | | (6.72)% | | | | 8.96% | | | | 10.55% | | | | 12.59% | |
Baron Discovery Fund — R6 Shares1, 2, 3 | | | 17.54% | | | | 15.22% | | | | (6.73)% | | | | 8.96% | | | | 10.56% | | | | 12.59% | |
Russell 2000 Growth Index1 | | | 21.30% | | | | 20.35% | | | | (2.68)% | | | | 7.38% | | | | 7.89% | | | | 8.36% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 12.96% | | | | 13.57% | |
| † | The Fund’s 5- and 10-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future. |
| 1 | The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. All rights in the FTSE Russell Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the Russell 2000® Growth Index and S&P 500 Index include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The indexes are unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser may waive or reimburse certain Fund expenses pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 3 | Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares. |
12
| | |
| March 31, 2024 (Unaudited) | | Baron Discovery Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
DraftKings Inc. | | | 3.6% | |
Kinsale Capital Group, Inc. | | | 3.4% | |
Axon Enterprise, Inc. | | | 2.9% | |
CyberArk Software Ltd. | | | 2.8% | |
Advanced Energy Industries, Inc. | | | 2.6% | |
GitLab Inc. | | | 2.6% | |
SiteOne Landscape Supply, Inc. | | | 2.5% | |
Masimo Corporation | | | 2.5% | |
Floor & Decor Holdings, Inc. | | | 2.5% | |
Axonics, Inc. | | | 2.5% | |
| |
Total | | | 28.0% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Discovery Fund1 increased 17.42%, while the Russell 2000 Growth Index increased 21.30% and the S&P 500 Index increased 23.48%.
Baron Discovery Fund invests primarily in small-sized U.S. companies which at time of purchase have market capitalizations up to the largest market cap stock in the Russell 2000 Growth Index at June 30, or companies with market capitalizations up to $2.5 billion, whichever is larger.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period. Improving inflation data coupled with dovish comments from the U.S. Federal Reserve (the Fed) spurred an “everything rally.” In a significant shift from its earlier stance, the Fed suggested it was planning three interest rate cuts over 2024. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Information Technology, Consumer Discretionary, and Industrials contributed the most. Consumer Staples detracted slightly.
DraftKings Inc., a leading online sportsbook, contributed the most during the period on two straight quarters of solid financial results, including strong market share gains and an improved outlook for future profitability. Market share capture has been driven by investment in innovative product offerings that are resulting in strong customer retention. The company also announced the acquisition of JackPocket, a digital lottery courier service. We believe the acquisition will help DraftKings achieve a first-mover advantage in many states that offer the JackPocket service but have not yet legalized online sports betting. DraftKings is well positioned to generate margin expansion and positive free cash flow as it grows revenue alongside the rapidly expanding U.S. sports betting market, in our view.
The Beauty Health Company was the top detractor. Shares of the maker of the HydraFacial skin care machine declined during the period held after reporting disappointing results that showed execution issues associated with the roll out of Syndeo, the latest generation of the HydraFacial machine. While the features and functionality of this new device far surpassed the prior version, it also had several defects that caused potential buyers to delay purchases. The company also incurred costs associated with repairing and replacing existing Syndeos. Lastly, the company announced that the CEO was leaving. Due to the uncertainty surrounding the defects with Syndeo and management turnover, we exited the position.
No one can accurately and consistently predict short-term market movements, in our experience. Instead, we stay focused on identifying and investing in our competitively advantaged, emerging growth businesses for the long term. By staying true to our time-tested investment process, we believe our shareholders will be rewarded when the inevitable economic recovery begins.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
13
| | |
| Baron Durable Advantage Fund (Unaudited) | | March 31, 2024 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON DURABLE ADVANTAGE FUND
(RETAIL SHARES)INRELATIONTOTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED MARCH 31, 2024 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Since
Inception
(December 29,
2017) | |
Baron Durable Advantage Fund — Retail Shares1, 2 | | | 26.19% | | | | 38.68% | | | | 15.61% | | | | 18.56% | | | | 15.70% | |
Baron Durable Advantage Fund — Institutional Shares1, 2 | | | 26.32% | | | | 39.01% | | | | 15.89% | | | | 18.84% | | | | 15.97% | |
Baron Durable Advantage Fund — R6 Shares1, 2 | | | 26.37% | | | | 39.07% | | | | 15.91% | | | | 18.85% | | | | 15.98% | |
S&P 500 Index1 | | | 23.48% | | | | 29.88% | | | | 11.49% | | | | 15.05% | | | | 13.37% | |
| 1 | The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The Fund includes reinvestment of dividends, net of foreign withholding taxes, while the S&P 500 Index includes reinvestment of dividends before taxes. Reinvestment of dividends positively impacts the performance results. The index is unmanaged. Index performance is not Fund performance; one cannot invest directly in an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser waives and/or reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
14
| | |
| March 31, 2024 (Unaudited) | | Baron Durable Advantage Fund |
TOP TEN HOLDINGSASOF MARCH 31, 2024
| | | | |
| | | Percent of
Net Assets* | |
Microsoft Corporation | | | 9.2% | |
Meta Platforms, Inc. | | | 7.7% | |
Amazon.com, Inc. | | | 7.5% | |
NVIDIA Corporation | | | 4.4% | |
Visa Inc. | | | 4.4% | |
Alphabet Inc. | | | 4.3% | |
S&P Global Inc. | | | 3.8% | |
Intuit Inc. | | | 3.6% | |
Mastercard Incorporated | | | 3.4% | |
Moody’s Corporation | | | 3.4% | |
| |
Total | | | 51.8% | |
SECTOR BREAKDOWNASOF MARCH 31, 2024†*
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended March 31, 2024, Baron Durable Advantage Fund1 increased 26.19% while the S&P 500 Index increased 23.48%.
Baron Durable Advantage Fund invests mainly in large-sized U.S. companies with competitive advantages and market capitalizations no smaller than the top 90th percentile by market capitalization of the S&P 500 Index at June 30, or companies with market capitalizations above $10 billion, whichever is smaller. The Fund emphasizes businesses with excess free cash flow that can be returned to shareholders.
Following a three-month dip from late July through October, the markets went on a bull run that continued through to the end of the period, led by the “Magnificent Seven” mega-cap technology stocks. In a significant shift from its earlier stance, the U.S. Federal Reserve (the Fed) suggested it was planning three interest rate cuts over 2024 in light of improving inflation data. The rally was further propelled by robust economic data and relatively strong corporate earnings, which added fuel to investor hopes for a soft landing. Investors appeared unfazed even when concerns about persistent inflation re-emerged, the Fed pushed back its plans for rate cuts, consumer and government debt reached record highs, and geopolitical strife continued unabated.
Information Technology, Financials, and Communication Services contributed the most. No sector detracted.
Meta Platforms, Inc. was the top contributor. Shares of the world’s largest social network increased on decisive cost discipline actions, improving adoption of new advertising products, and its work in generative AI. Meta is the mega-cap technology company most focused on cost cutting, while user engagement remains healthy and newer advertising formats are reportedly picking up steam. Longer term, we believe Meta will utilize its leadership in mobile advertising, massive user base, innovative culture, and technological scale to perform, with further monetization opportunities ahead.
The Estee Lauder Companies Inc. was the top detractor. Shares of this prestige beauty products company were challenged after management cut the company’s outlook for the fiscal year. This downward revision was mainly driven by a worsening outlook in China, business disruptions in Israel and other parts of the Middle East, and increasing FX headwinds. Lauder’s disproportionate exposure to the Chinese consumer and the travel retail channel in Asia relative to peers continued to place pressure on both growth and margins. We exited our position.
As long-term investors who have lived through multiple market cycles, we have learned not to try to predict the unpredictable. Instead of focusing on short-term market gyrations, we believe that investing in great businesses at attractive valuations will enable us to earn excess risk-adjusted returns over the long term. We look for companies with strong and durable competitive advantages, track records of successful capital allocation, high returns on invested capital, and high free-cash-flow generation, a portion of which is regularly returned to shareholders as dividends or share repurchases.
| * | Individual weights may not sum to 100% (or displayed total) due to rounding. |
| † | Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of Retail Shares. |
15
| | |
| Baron Asset Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (96.38%) | |
| Communication Services (1.55%) | |
| | | | Advertising (1.00%) | | | | | | | | |
| | 524,000 | | | The Trade Desk, Inc., Cl A1 | | $ | 10,100,895 | | | $ | 45,808,080 | |
| | |
| | | | Movies & Entertainment (0.55%) | | | | | |
| | 95,000 | | | Spotify Technology SA1,2 | | | 23,132,410 | | | | 25,070,500 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 33,233,305 | | | | 70,878,580 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (7.76%) | |
| | | | Footwear (1.17%) | | | | | |
| | 351,069 | | | Birkenstock Holding PLC1,2 | | | 16,149,174 | | | | 16,588,010 | |
| | 1,037,000 | | | On Holding AG, Cl A1,2 | | | 30,424,600 | | | | 36,689,060 | |
| | | | | | | | | | | | |
| | | | 46,573,774 | | | | 53,277,070 | |
| | |
| | | | Home Improvement Retail (0.60%) | | | | | |
| | 211,000 | | | Floor & Decor Holdings, Inc., Cl A1 | | | 18,452,772 | | | | 27,349,820 | |
| | |
| | | | Hotels, Resorts & Cruise Lines (3.28%) | | | | | |
| | 503,442 | | | Choice Hotels International, Inc. | | | 2,156,126 | | | | 63,609,897 | |
| | 31,000 | | | Hilton Worldwide Holdings, Inc. | | | 6,489,341 | | | | 6,612,610 | |
| | 500,233 | | | Hyatt Hotels Corp., Cl A | | | 13,700,166 | | | | 79,847,191 | |
| | | | | | | | | | | | |
| | | | 22,345,633 | | | | 150,069,698 | |
| |
| | | | Leisure Facilities (2.71%) | |
| | 555,538 | | | Vail Resorts, Inc. | | | 10,743,565 | | | | 123,790,533 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 98,115,744 | | | | 354,487,121 | |
| | | | | | | | | | | | |
|
| Financials (13.65%) | |
| | | | Asset Management & Custody Banks (0.41%) | | | | | | | | |
| | 154,514 | | | T. Rowe Price Group, Inc. | | | 3,727,484 | | | | 18,838,347 | |
| | |
| | | | Financial Exchanges & Data (5.75%) | | | | | |
| | 342,725 | | | FactSet Research Systems, Inc. | | | 18,325,485 | | | | 155,730,813 | |
| | 156,000 | | | Morningstar, Inc. | | | 32,512,227 | | | | 48,105,720 | |
| | 47,000 | | | MSCI, Inc. | | | 15,780,557 | | | | 26,341,150 | |
| | 311,189 | | | Tradeweb Markets, Inc., Cl A | | | 11,725,465 | | | | 32,416,558 | |
| | | | | | | | | | | | |
| | | | 78,343,734 | | | | 262,594,241 | |
| |
| | | | Insurance Brokers (0.51%) | |
| | 84,421 | | | Willis Towers Watson PLC2 | | | 10,305,610 | | | | 23,215,775 | |
| | |
| | | | Investment Banking &
Brokerage (2.87%) | | | | | |
| | 1,613,936 | | | The Charles Schwab Corp. | | | 1,420,851 | | | | 116,752,130 | |
| | 54,000 | | | LPL Financial Holdings, Inc. | | | 12,105,109 | | | | 14,266,800 | |
| | | | | | | | | | | | |
| | | | 13,525,960 | | | | 131,018,930 | |
| |
| | | | Property & Casualty Insurance (4.11%) | |
| | 2,031,444 | | | Arch Capital Group Ltd.1,2 | | | 7,307,976 | | | | 187,786,683 | |
| | | | | | | | | | | | |
| | Total Financials | | | 113,210,764 | | | | 623,453,976 | |
| | | | | | | | | | | | |
|
| Health Care (22.91%) | |
| | | | Biotechnology (0.33%) | |
| | 38,366 | | | argenx SE, ADR1,2 | | | 12,332,714 | | | | 15,105,462 | |
| | | |
| | | | Health Care Equipment (7.53%) | | | | | | | | |
| | 343,000 | | | DexCom, Inc.1 | | | 21,683,691 | | | | 47,574,100 | |
| | 548,630 | | | IDEXX Laboratories, Inc.1 | | | 9,741,988 | | | | 296,221,796 | |
| | | | | | | | | | | | |
| | | | 31,425,679 | | | | 343,795,896 | |
| | | |
| | | | Health Care Supplies (1.72%) | | | | | | | | |
| | 773,672 | | | Cooper Cos., Inc. | | | 30,234,022 | | | | 78,496,761 | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
|
| Health Care (continued) | |
| | |
| | | | Health Care Technology (1.89%) | | | | | |
| | 372,386 | | | Veeva Systems, Inc., Cl A1 | | $ | 20,675,207 | | | $ | 86,278,112 | |
| | |
| | | | Life Sciences Tools & Services (11.44%) | | | | | |
| | 1,404,944 | | | Bio-Techne Corporation | | | 33,796,494 | | | | 98,894,008 | |
| | 184,000 | | | ICON plc1,2 | | | 39,500,431 | | | | 61,814,800 | |
| | 157,117 | | | Mettler-Toledo International, Inc.1 | | | 9,187,095 | | | | 209,168,291 | |
| | 179,000 | | | Repligen Corp.1 | | | 30,336,045 | | | | 32,921,680 | |
| | 302,404 | | | West Pharmaceutical Services, Inc. | | | 13,012,900 | | | | 119,664,287 | |
| | | | | | | | | | | | |
| | | | 125,832,965 | | | | 522,463,066 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 220,500,587 | | | | 1,046,139,297 | |
| | | | | | | | | | | | |
|
| Industrials (14.79%) | |
| | | | Aerospace & Defense (0.38%) | | | | | |
| | 55,000 | | | Axon Enterprise, Inc.1 | | | 10,716,158 | | | | 17,208,400 | |
| | |
| | | | Construction & Engineering (1.62%) | | | | | |
| | 285,000 | | | Quanta Services, Inc. | | | 47,697,751 | | | | 74,043,000 | |
| | |
| | | | Data Processing & Outsourced
Services (1.00%) | | | | | |
| | 710,076 | | | SS&C Technologies Holdings, Inc. | | | 19,218,215 | | | | 45,707,592 | |
| | |
| | | | Environmental & Facilities
Services (1.53%) | | | | | |
| | 1,514,418 | | | Rollins, Inc. | | | 21,152,732 | | | | 70,072,121 | |
| | |
| | | | Human Resource & Employment
Services (2.19%) | | | | | |
| | 1,508,093 | | | Dayforce, Inc. (formerly, Ceridian HCM Holding, Inc.)1 | | | 57,095,886 | | | | 99,850,838 | |
| | |
| | | | Industrial Machinery & Supplies &
Components (1.54%) | | | | | |
| | 287,760 | | | IDEX Corp. | | | 20,579,527 | | | | 70,219,195 | |
| | |
| | | | Research & Consulting
Services (6.53%) | | | | | |
| | 180,000 | | | Booz Allen Hamilton Holding Corp. | | | 19,582,209 | | | | 26,719,200 | |
| | 827,500 | | | TransUnion | | | 34,946,379 | | | | 66,034,500 | |
| | 871,206 | | | Verisk Analytics, Inc. | | | 21,340,017 | | | | 205,369,390 | |
| | | | | | | | | | | | |
| | | | 75,868,605 | | | | 298,123,090 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 252,328,874 | | | | 675,224,236 | |
| | | | | | | | | | | | |
|
| Information Technology (28.61%) | |
| | | | Application Software (13.33%) | | | | | | | | |
| | 306,250 | | | ANSYS, Inc.1 | | | 8,130,637 | | | | 106,317,750 | |
| | 161,026 | | | Aspen Technology, Inc.1 | | | 29,330,886 | | | | 34,343,625 | |
| | 121,000 | | | Fair Isaac Corp.1 | | | 49,234,200 | | | | 151,202,810 | |
| | 1,310,809 | | | Guidewire Software, Inc.1 | | | 66,916,460 | | | | 152,984,519 | |
| | 370,000 | | | Procore Technologies, Inc.1 | | | 27,028,150 | | | | 30,402,900 | |
| | 238,192 | | | Roper Technologies, Inc. | | | 19,882,431 | | | | 133,587,601 | |
| | | | | | | | | | | | |
| | | | 200,522,764 | | | | 608,839,205 | |
| | | |
| | | | Electronic Components (2.09%) | | | | | | | | |
| | 829,000 | | | Amphenol Corp., Cl A | | | 39,080,301 | | | | 95,625,150 | |
| | |
| | | | Internet Services & Infrastructure (1.45%) | | | | | |
| | 348,103 | | | Verisign, Inc.1 | | | 15,787,379 | | | | 65,969,000 | |
| | |
| | | | IT Consulting & Other Services (9.75%) | | | | | |
| | 934,323 | | | Gartner, Inc.1 | | | 19,158,422 | | | | 445,363,744 | |
| | |
| | | | Technology Distributors (1.99%) | | | | | |
| | 355,363 | | | CDW Corp. | | | 22,129,555 | | | | 90,894,748 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 296,678,421 | | | | 1,306,691,847 | |
| | | | | | | | | | | | |
| | |
| 16 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Asset Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Real Estate (7.11%) | |
| | | | Data Center REITs (1.00%) | | | | | | | | |
| | 55,416 | | | Equinix, Inc. | | $ | 3,568,755 | | | $ | 45,736,487 | |
| | |
| | | | Real Estate Services (5.86%) | | | | | |
| | 516,323 | | | CBRE Group, Inc., Cl A1 | | | 5,774,214 | | | | 50,207,249 | |
| | 2,248,930 | | | CoStar Group, Inc.1 | | | 47,365,826 | | | | 217,246,638 | |
| | | | | | | | | | | | |
| | | | 53,140,040 | | | | 267,453,887 | |
| | | |
| | | | Telecom Tower REITs (0.25%) | | | | | | | | |
| | 53,856 | | | SBA Communications Corp. | | | 1,210,360 | | | | 11,670,595 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 57,919,155 | | | | 324,860,969 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,071,986,850 | | | | 4,401,736,026 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (1.38%) | |
| Communication Services (1.04%) | | | | | | |
| | | | Movies & Entertainment (1.04%) | | | | | |
| | 197,613 | | | StubHub Holdings, Inc., Cl A1,3,4,6 | | | 50,000,041 | | | | 47,334,242 | |
| | | | | | | | | | | | |
| | |
| Industrials (0.34%) | | | | | | |
| | | | Aerospace & Defense (0.34%) | | | | | | | | |
| | 92,406 | | | Space Exploration
Technologies Corp., Cl A1,3,4,6 | | | 7,115,262 | | | | 8,963,382 | |
| | 69,932 | | | Space Exploration
Technologies Corp., Cl C1,3,4,6 | | | 5,384,764 | | | | 6,783,404 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 12,500,026 | | | | 15,746,786 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 62,500,067 | | | | 63,081,028 | |
| | | | | | | | | |
| | | | | | | | | | | | |
| Private Preferred Stocks (2.05%) | |
| Industrials (2.05%) | |
| | | | Aerospace & Defense (2.05%) | | | | | | | | |
| | 96,298 | | | Space Exploration
Technologies Corp., Series N1,3,4,6 | | | 26,000,460 | | | | 93,409,060 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short-Term Investments (0.17%) | |
| | $7,841,272 | | | Repurchase Agreement with Fixed Income Clearing Corp.,
dated 3/28/2024, 4.85% due 4/1/2024; Proceeds at maturity $7,845,497;
(Fully Collateralized by $8,734,900 U.S. Treasury Note, 0.75% due 8/31/2026 Market value - $7,998,100)5 | | $ | 7,841,272 | | | $ | 7,841,272 | |
| | | | | | | | | | | | |
| | Total Investments (99.98%) | | $ | 1,168,328,649 | | | | 4,566,067,386 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.02%) | | | | 1,065,032 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 4,567,132,418 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At March 31, 2024, the market value of restricted and fair valued securities amounted to $156,490,088 or 3.43% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 6 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 17 |
| | |
| Baron Growth Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (99.76%) | |
| Communication Services (2.40%) | |
| | | | Alternative Carriers (2.40%) | | | | | | | | |
| | 7,375,000 | | | Iridium Communications, Inc.4 | | $ | 44,987,505 | | | $ | 192,930,000 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (14.70%) | |
| | | | Apparel, Accessories & Luxury Goods (0.67%) | | | | | | | | |
| | 10,884,539 | | | Figs, Inc., Cl A1 | | | 79,473,620 | | | | 54,205,004 | |
| |
| | | | Casinos & Gaming (1.83%) | |
| | 440,000 | | | Boyd Gaming Corporation | | | 11,056,072 | | | | 29,620,800 | |
| | 1,968,677 | | | Red Rock Resorts, Inc., Cl A | | | 43,528,673 | | | | 117,766,258 | |
| | | | | | | | | | | | |
| | | | 54,584,745 | | | | 147,387,058 | |
| |
| | | | Education Services (1.09%) | |
| | 775,000 | | | Bright Horizons Family
Solutions, Inc.1 | | | 24,595,304 | | | | 87,854,000 | |
| |
| | | | Hotels, Resorts & Cruise
Lines (4.71%) | |
| | 3,000,000 | | | Choice Hotels International, Inc.4 | | | 75,582,685 | | | | 379,050,000 | |
| |
| | | | Leisure Facilities (5.54%) | |
| | 2,000,000 | | | Vail Resorts, Inc.4 | | | 56,102,209 | | | | 445,660,000 | |
| |
| | | | Restaurants (0.86%) | |
| | 4,540,000 | | | Krispy Kreme, Inc. | | | 65,918,556 | | | | 69,166,900 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 356,257,119 | | | | 1,183,322,962 | |
| | | | | | | | | | | | |
|
| Financials (46.26%) | |
| | | | Asset Management &
Custody Banks (2.63%) | |
| | 1,600,000 | | | The Carlyle Group, Inc. | | | 32,614,747 | | | | 75,056,000 | |
| | 1,775,000 | | | Cohen & Steers, Inc. | | | 37,640,938 | | | | 136,479,750 | |
| | | | | | | | | | | | |
| | | | 70,255,685 | | | | 211,535,750 | |
| | | | Commercial & Residential
Mortgage Finance (0.39%) | |
| | 520,000 | | | Essent Group Ltd.2 | | | 14,300,210 | | | | 30,945,200 | |
| |
| | | | Financial Exchanges & Data (20.69%) | |
| | 1,200,000 | | | FactSet Research Systems, Inc. | | | 59,954,575 | | | | 545,268,000 | |
| | 925,000 | | | Morningstar, Inc. | | | 18,840,637 | | | | 285,242,250 | |
| | 1,490,000 | | | MSCI, Inc. | | | 27,417,980 | | | | 835,070,500 | |
| | | | | | | | | | | | |
| | | | 106,213,192 | | | | 1,665,580,750 | |
| |
| | | | Investment Banking &
Brokerage (0.96%) | |
| | 450,000 | | | Houlihan Lokey, Inc. | | | 19,625,873 | | | | 57,685,500 | |
| | 350,000 | | | Moelis & Co., Cl A | | | 4,682,331 | | | | 19,869,500 | |
| | | | | | | | | | | | |
| | | | 24,308,204 | | | | 77,555,000 | |
| |
| | | | Life & Health Insurance (4.71%) | |
| | 1,500,000 | | | Primerica, Inc. | | | 31,190,715 | | | | 379,440,000 | |
| |
| | | | Property & Casualty
Insurance (16.88%) | |
| | 9,025,000 | | | Arch Capital Group Ltd.1,2 | | | 28,122,057 | | | | 834,271,000 | |
| | 1,000,000 | | | Kinsale Capital Group, Inc. | | | 35,007,763 | | | | 524,740,000 | |
| | | | | | | | | | | | |
| | | | 63,129,820 | | | | 1,359,011,000 | |
| | | | | | | | | | | | |
| | Total Financials | | | 309,397,826 | | | | 3,724,067,700 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Health Care (8.89%) | |
| | | | Health Care Equipment (3.35%) | |
| | 500,000 | | | IDEXX Laboratories, Inc.1 | | $ | 6,993,471 | | | $ | 269,965,000 | |
| |
| | | | Health Care Supplies (0.26%) | |
| | 1,342,434 | | | Neogen Corp.1 | | | 17,026,471 | | | | 21,183,609 | |
| |
| | | | Life Sciences Tools & Services (5.28%) | |
| | 2,700,000 | | | Bio-Techne Corporation | | | 35,319,438 | | | | 190,053,000 | |
| | 65,000 | | | Mettler-Toledo International, Inc.1 | | | 2,972,255 | | | | 86,533,850 | |
| | 375,000 | | | West Pharmaceutical Services, Inc. | | | 12,660,506 | | | | 148,391,250 | |
| | | | | | | | | | | | |
| | | | 50,952,199 | | | | 424,978,100 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 74,972,141 | | | | 716,126,709 | |
| | | | | | | | | | | | |
|
| Industrials (1.24%) | |
| | | | Building Products (1.24%) | |
| | 1,000,000 | | | Trex Co., Inc.1 | | | 8,972,042 | | | | 99,750,000 | |
| | | | | | | | | | | | |
|
| Information Technology (15.26%) | |
| | | | Application Software (6.44%) | |
| | 725,000 | | | Altair Engineering, Inc., Cl A1 | | | 11,330,019 | | | | 62,458,750 | |
| | 990,000 | | | ANSYS, Inc.1 | | | 22,569,533 | | | | 343,688,400 | |
| | 305,000 | | | Clearwater Analytics Holdings, Inc., Cl A1 | | | 4,682,009 | | | | 5,395,450 | |
| | 915,000 | | | Guidewire Software, Inc.1 | | | 27,661,456 | | | | 106,789,650 | |
| | | | | | | | | | | | |
| | | | 66,243,017 | | | | 518,332,250 | |
| |
| | | | IT Consulting & Other Services (8.82%) | |
| | 1,490,000 | | | Gartner, Inc.1 | | | 20,640,403 | | | | 710,238,300 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 86,883,420 | | | | 1,228,570,550 | |
| | | | | | | | | | | | |
|
| Real Estate (11.01%) | |
| | | | Office REITs (1.81%) | |
| | 700,000 | | | Alexandria Real Estate
Equities, Inc. | | | 24,195,006 | | | | 90,237,000 | |
| | 4,000,000 | | | Douglas Emmett, Inc. | | | 35,524,931 | | | | 55,480,000 | |
| | | | | | | | | | | | |
| | | | 59,719,937 | | | | 145,717,000 | |
| |
| | | | Other Specialized REITs (3.03%) | |
| | 5,300,000 | | | Gaming and Leisure
Properties, Inc. | | | 110,905,424 | | | | 244,171,000 | |
| |
| | | | Real Estate Services (6.17%) | |
| | 5,140,000 | | | CoStar Group, Inc.1 | | | 21,461,380 | | | | 496,524,000 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 192,086,741 | | | | 886,412,000 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,073,556,794 | | | | 8,031,179,921 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (0.01%) | |
| Materials (0.01%) | | | | | | |
| | | | Fertilizers & Agricultural Chemicals (0.01%) | |
| | | |
| | 422,278 | | | Farmers Business
Network, Inc.1,2,3,5,6 | | | 16,300,002 | | | | 785,437 | |
| | | | | | | | | | | | |
| | |
| 18 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Growth Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Private Convertible Preferred Stocks (0.15%) | |
| Industrials (0.15%) | | | | | | |
| | | | Electrical Components &
Equipment (0.15%) | |
| | | |
| | 59,407,006 | | | Northvolt AB (Sweden)1,2,3,5,6 | | $ | 9,374,989 | | | $ | 11,993,680 | |
| | | | | | | | | | | | |
| | Total Investments (99.92%) | | $ | 1,099,231,785 | | | | 8,043,959,038 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.08%) | | | | 6,670,897 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 8,050,629,935 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At March 31, 2024, the market value of restricted and fair valued securities amounted to $12,779,117 or 0.16% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | See Note 4 regarding “Affiliated” companies. |
| 5 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 6 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 19 |
| | |
| Baron Small Cap Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (98.51%) | |
| Communication Services (3.99%) | |
| | | | Advertising (1.34%) | | | | | | | | |
| | 750,000 | | | The Trade Desk, Inc., Cl A1 | | $ | 2,662,500 | | | $ | 65,565,000 | |
| |
| | | | Movies & Entertainment (2.65%) | |
| | 1,200,000 | | | Liberty Media Corp.-Liberty Formula One, Cl C1 | | | 20,511,579 | | | | 78,720,000 | |
| | 207,610 | | | Liberty Media Corporation-Liberty Live, Cl C1 | | | 680,178 | | | | 9,097,470 | |
| | 225,000 | | | Madison Square Garden Sports Corp.1 | | | 8,416,557 | | | | 41,517,000 | |
| | | | | | | | | | | | |
| | | | 29,608,314 | | | | 129,334,470 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 32,270,814 | | | | 194,899,470 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (17.13%) | |
| | | | Automotive Parts &
Equipment (1.42%) | | | | | | | | |
| | 900,000 | | | Fox Factory Holding Corp.1 | | | 67,818,000 | | | | 46,863,000 | |
| | 5,000,000 | | | Holley, Inc.1 | | | 40,431,893 | | | | 22,300,000 | |
| | | | | | | | | | | | |
| | | | 108,249,893 | | | | 69,163,000 | |
| |
| | | | Casinos & Gaming (4.49%) | |
| | 875,000 | | | DraftKings, Inc., Cl A1 | | | 11,187,787 | | | | 39,733,750 | |
| | 3,000,000 | | | Red Rock Resorts, Inc., Cl A | | | 86,392,310 | | | | 179,460,000 | |
| | | | | | | | | | | | |
| | | | 97,580,097 | | | | 219,193,750 | |
| |
| | | | Education Services (1.45%) | |
| | 625,000 | | | Bright Horizons Family Solutions, Inc.1 | | | 19,174,147 | | | | 70,850,000 | |
| |
| | | | Home Improvement Retail (2.26%) | |
| | 850,000 | | | Floor & Decor Holdings, Inc., Cl A1 | | | 30,054,925 | | | | 110,177,000 | |
| |
| | | | Homebuilding (3.31%) | |
| | 625,000 | | | Installed Building Products, Inc. | | | 28,122,724 | | | | 161,706,250 | |
| |
| | | | Leisure Facilities (1.70%) | |
| | 1,325,000 | | | Planet Fitness, Inc., Cl A1 | | | 58,847,372 | | | | 82,984,750 | |
| |
| | | | Restaurants (1.63%) | |
| | 2,200,000 | | | The Cheesecake Factory, Inc. | | | 60,116,924 | | | | 79,530,000 | |
| |
| | | | Specialized Consumer Services (0.87%) | |
| | 3,265,000 | | | European Wax Center, Inc., Cl A1 | | | 57,512,147 | | | | 42,379,700 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 459,658,229 | | | | 835,984,450 | |
| | | | | | | | | | | | |
|
| Consumer Staples (2.07%) | |
| | | | Packaged Foods & Meats (1.23%) | |
| | 3,250,000 | | | UTZ Brands, Inc. | | | 51,593,468 | | | | 59,930,000 | |
| |
| | | | Personal Care Products (0.84%) | |
| | 950,000 | | | Oddity Tech Ltd.1,2 | | | 35,054,635 | | | | 41,277,500 | |
| | | | | | | | | | | | |
| | Total Consumer Staples | | | 86,648,103 | | | | 101,207,500 | |
| | | | | | | | | | | | |
|
| Financials (10.77%) | |
| | | | Insurance Brokers (1.93%) | |
| | 3,250,000 | | | BRP Group, Inc., Cl A1 | | | 54,388,028 | | | | 94,055,000 | |
| |
| | | | Investment Banking &
Brokerage (1.64%) | |
| | 625,000 | | | Houlihan Lokey, Inc. | | | 28,909,333 | | | | 80,118,750 | |
| |
| | | | Property & Casualty Insurance (5.11%) | |
| | 475,000 | | | Kinsale Capital Group, Inc. | | | 69,271,272 | | | | 249,251,500 | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
|
| Financials (continued) | |
| |
| | | | Transaction & Payment
Processing Services (2.09%) | |
| | 3,900,000 | | | Repay Holdings Corporation 1 | | $ | 33,541,410 | | | $ | 42,900,000 | |
| | 250,000 | | | WEX, Inc.1 | | | 10,329,020 | | | | 59,382,500 | |
| | | | | | | | | | | | |
| | | | 43,870,430 | | | | 102,282,500 | |
| | | | | | | | | | | | |
| | Total Financials | | | 196,439,063 | | | | 525,707,750 | |
| | | | | | | | | | | | |
|
| Health Care (11.43%) | |
| | | | Health Care Equipment (2.77%) | |
| | 550,000 | | | DexCom, Inc.1 | | | 1,823,402 | | | | 76,285,000 | |
| | 30,000 | | | IDEXX Laboratories, Inc.1 | | | 414,061 | | | | 16,197,900 | |
| | 200,000 | | | Inspire Medical Systems, Inc.1 | | | 10,019,389 | | | | 42,958,000 | |
| | | | | | | | | | | | |
| | | | 12,256,852 | | | | 135,440,900 | |
| |
| | | | Health Care Supplies (1.62%) | |
| | 5,000,000 | | | Neogen Corp.1 | | | 90,021,499 | | | | 78,900,000 | |
| |
| | | | Life Sciences Tools & Services (5.70%) | |
| | 700,000 | | | ICON plc1,2 | | | 38,492,341 | | | | 235,165,000 | |
| | 32,500 | | | Mettler-Toledo International, Inc.1 | | | 1,571,421 | | | | 43,266,925 | |
| | | | | | | | | | | | |
| | | | 40,063,762 | | | | 278,431,925 | |
| |
| | | | Managed Health Care (1.34%) | |
| | 800,000 | | | HealthEquity, Inc.1 | | | 13,208,486 | | | | 65,304,000 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 155,550,599 | | | | 558,076,825 | |
| | | | | | | | | | | | |
|
| Industrials (32.88%) | |
| | | | Aerospace & Defense (3.76%) | |
| | 2,250,000 | | | Kratos Defense & Security Solutions, Inc.1 | | | 34,436,698 | | | | 41,355,000 | |
| | 650,000 | | | Mercury Systems, Inc.1 | | | 14,295,325 | | | | 19,175,000 | |
| | 100,000 | | | TransDigm Group, Inc.1 | | | 0 | | | | 123,160,000 | |
| | | | | | | | | | | | |
| | | | 48,732,023 | | | | 183,690,000 | |
| |
| | | | Building Products (3.09%) | |
| | 6,000,000 | | | Janus International Group, Inc.1 | | | 59,406,533 | | | | 90,780,000 | |
| | 600,000 | | | Trex Co., Inc.1 | | | 21,427,914 | | | | 59,850,000 | |
| | | | | | | | | | | | |
| | | | 80,834,447 | | | | 150,630,000 | |
| |
| | | | Diversified Support Services (0.65%) | |
| | 2,000,000 | | | Driven Brands Holdings, Inc.1 | | | 45,741,820 | | | | 31,580,000 | |
| |
| | | | Electrical Components &
Equipment (8.23%) | |
| | 500,000 | | | Shoals Technologies
Group, Inc., Cl A1 | | | 5,807,786 | | | | 5,590,000 | |
| | 4,850,000 | | | Vertiv Holdings Co. | | | 48,986,646 | | | | 396,099,500 | |
| | | | | | | | | | | | |
| | | | 54,794,432 | | | | 401,689,500 | |
| |
| | | | Environmental & Facilities
Services (1.23%) | |
| | 350,000 | | | Waste Connections, Inc.2 | | | 15,283,333 | | | | 60,203,500 | |
| |
| | | | Human Resource & Employment
Services (6.29%) | |
| | 1,750,000 | | | ASGN, Inc.1 | | | 55,248,585 | | | | 183,330,000 | |
| | 950,000 | | | Dayforce, Inc. (formerly, Cerdian HCM holding, Inc.) 1 | | | 29,430,555 | | | | 62,899,500 | |
| | 3,750,000 | | | First Advantage Corp.1 | | | 60,629,977 | | | | 60,825,000 | |
| | | | | | | | | | | | |
| | | | 145,309,117 | | | | 307,054,500 | |
| | |
| 20 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Small Cap Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
|
| Industrials (continued) | |
| |
| | | | Industrial Machinery &
Supplies & Components (5.87%) | |
| | 875,000 | | | Chart Industries, Inc.1 | | $ | 134,646,826 | | | $ | 144,130,000 | |
| | 650,000 | | | John Bean Technologies Corp. | | | 58,463,810 | | | | 68,178,500 | |
| | 275,000 | | | RBC Bearings, Incorporated1 | | | 32,617,037 | | | | 74,346,250 | |
| | | | | | | | | | | | |
| | | | 225,727,673 | | | | 286,654,750 | |
| |
| | | | Research & Consulting
Services (0.45%) | |
| | 265,000 | | | Exponent, Inc. | | | 20,189,458 | | | | 21,912,850 | |
| |
| | | | Trading Companies &
Distributors (3.31%) | |
| | 925,000 | | | SiteOne Landscape Supply, Inc.1 | | | 40,106,104 | | | | 161,458,750 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 676,718,407 | | | | 1,604,873,850 | |
| | | | | | | | | | | | |
|
| Information Technology (17.94%) | |
| | | | Application Software (9.41%) | |
| | 500,000 | | | Altair Engineering, Inc., Cl A1 | | | 7,667,854 | | | | 43,075,000 | |
| | 350,000 | | | Aspen Technology, Inc.1 | | | 32,534,028 | | | | 74,648,000 | |
| | 2,300,000 | | | Clearwater Analytics
Holdings, Inc., Cl A1 | | | 41,014,451 | | | | 40,687,000 | |
| | 1,225,000 | | | Guidewire Software, Inc.1 | | | 31,269,358 | | | | 142,969,750 | |
| | 1,900,000 | | | Intapp, Inc.1 | | | 75,158,999 | | | | 65,170,000 | |
| | 925,000 | | | nCino, Inc.1 | | | 30,666,230 | | | | 34,576,500 | |
| | 975,000 | | | Sprout Social, Inc., Cl A1 | | | 54,910,448 | | | | 58,217,250 | |
| | | | | | | | | | | | |
| | | | 273,221,368 | | | | 459,343,500 | |
| |
| | | | Electronic Equipment &
Instruments (1.30%) | |
| | 1,500,000 | | | Cognex Corp. | | | 25,832,808 | | | | 63,630,000 | |
| |
| | | | IT Consulting & Other Services (6.50%) | |
| | 800,000 | | | Endava plc, ADR1,2 | | | 27,430,574 | | | | 30,432,000 | |
| | 525,000 | | | Gartner, Inc.1 | | | 6,820,144 | | | | 250,251,750 | |
| | 3,000,000 | | | Grid Dynamics Holdings, Inc.1 | | | 36,322,597 | | | | 36,870,000 | |
| | | | | | | | | | | | |
| | | | 70,573,315 | | | | 317,553,750 | |
| |
| | | | Semiconductors (0.73%) | |
| | 5,000,000 | | | indie Semiconductor, Inc., Cl A1 | | | 35,279,146 | | | | 35,400,000 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 404,906,637 | | | | 875,927,250 | |
| | | | | | | | | | | | |
|
| Materials (1.51%) | |
| | | | Specialty Chemicals (1.51%) | |
| | 1,700,000 | | | Avient Corp. | | | 53,733,696 | | | | 73,780,000 | |
| | | | | | | | | | | | |
|
| Real Estate (0.79%) | |
| | | | Industrial REITs (0.43%) | |
| | 850,000 | | | Americold Realty Trust, Inc. | | | 12,961,599 | | | | 21,182,000 | |
| |
| | | | Telecom Tower REITs (0.36%) | |
| | 80,000 | | | SBA Communications Corp. | | | 322,222 | | | | 17,336,000 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 13,283,821 | | | | 38,518,000 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 2,079,209,369 | | | | 4,808,975,095 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short-Term Investments (6.32%) | |
| | $308,630,336 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 3/28/2024, 4.85% due 4/1/2024; Proceeds at maturity $308,796,654; (Fully Collateralized by $17,399,000 U.S. Treasury Note, 4.875% due 10/31/2030 Market value - $18,405,462 and Fully Collateralized by $50,000,000 U.S. Treasury Note, 2.25% due 8/15/2027 Market value - $46,881,761 and Fully Collateralized by $263,349,200 U.S. Treasury Note, 0.75% due 8/31/2026 Market value - $241,135,371 and Fully Collateralized by $7,961,100 U.S. Treasury Bond, 4.75% due 2/15/2041 Market value - $8,380,397)3 | | $ | 308,630,336 | | | $ | 308,630,336 | |
| | | | | | | | | | | | |
| | Total Investments (104.83%) | | $ | 2,387,839,705 | | | | 5,117,605,431 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-4.83%) | | | | (235,845,695 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 4,881,759,736 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 21 |
| | |
| Baron Opportunity Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (95.91%) | |
| Communication Services (9.46%) | |
| | | | Advertising (1.91%) | | | | | | | | |
| | 285,510 | | | The Trade Desk, Inc., Cl A1 | | $ | 8,852,747 | | | $ | 24,959,284 | |
| |
| | | | Interactive Home Entertainment (0.92%) | |
| | 80,700 | | | Take-Two Interactive Software, Inc.1 | | | 8,525,083 | | | | 11,983,143 | |
| |
| | | | Interactive Media & Services (5.08%) | |
| | 125,000 | | | Meta Platforms, Inc., Cl A | | | 25,296,610 | | | | 60,697,500 | |
| | 117,997 | | | Reddit, Inc., Cl A1 | | | 4,011,898 | | | | 5,819,612 | |
| | | | | | | | | | | | |
| | | | 29,308,508 | | | | 66,517,112 | |
| |
| | | | Movies & Entertainment (1.55%) | |
| | 76,700 | | | Spotify Technology SA1,2 | | | 18,560,766 | | | | 20,241,130 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 65,247,104 | | | | 123,700,669 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (11.48%) | |
| | | | Automobile Manufacturers (3.74%) | |
| | 900,183 | | | Rivian Automotive, Inc., Cl A1 | | | 14,097,732 | | | | 9,857,004 | |
| | 222,400 | | | Tesla, Inc.1 | | | 11,164,677 | | | | 39,095,696 | |
| | | | | | | | | | | | |
| | | | 25,262,409 | | | | 48,952,700 | |
| |
| | | | Automotive Parts & Equipment (1.05%) | |
| | 425,200 | | | Mobileye Global, Inc., Cl A1 | | | 13,388,153 | | | | 13,670,180 | |
| |
| | | | Broadline Retail (6.69%) | |
| | 485,500 | | | Amazon.com, Inc.1 | | | 29,742,116 | | | | 87,574,490 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 68,392,678 | | | | 150,197,370 | |
| | | | | | | | | | | | |
|
| Financials (4.85%) | |
| | | | Transaction & Payment Processing
Services (4.85%) | |
| | 62,300 | | | MasterCard, Incorporated, Cl A | | | 13,361,059 | | | | 30,001,811 | |
| | 119,900 | | | Visa, Inc., Cl A | | | 18,936,666 | | | | 33,461,692 | |
| | | | | | | | | | | | |
| | Total Financials | | | 32,297,725 | | | | 63,463,503 | |
| | | | | | | | | | | | |
|
| Health Care (10.00%) | |
| | | | Biotechnology (6.94%) | |
| | 141,000 | | | Arcellx, Inc.1 | | | 9,894,704 | | | | 9,806,550 | |
| | 64,739 | | | argenx SE, ADR1,2 | | | 9,490,491 | | | | 25,489,039 | |
| | 195,500 | | | Legend Biotech Corp., ADR1,2 | | | 11,458,559 | | | | 10,965,595 | |
| | 690,270 | | | Rocket Pharmaceuticals, Inc.1 | | | 12,666,542 | | | | 18,595,874 | |
| | 316,600 | | | Viking Therapeutics, Inc.1 | | | 4,645,174 | | | | 25,961,200 | |
| | | | | | | | | | | | |
| | | | 48,155,470 | | | | 90,818,258 | |
| |
| | | | Health Care Equipment (3.06%) | |
| | 52,005 | | | Intuitive Surgical, Inc.1 | | | 7,280,110 | | | | 20,754,675 | |
| | 58,900 | | | Shockwave Medical, Inc.1 | | | 6,096,143 | | | | 19,179,607 | |
| | | | | | | | | | | | |
| | | | 13,376,253 | | | | 39,934,282 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 61,531,723 | | | | 130,752,540 | |
| | | | | | | | | | | | |
|
| Industrials (1.29%) | |
| | | | Human Resource & Employment
Services (1.29%) | |
| | 255,570 | | | Dayforce, Inc. (formerly, Cerdian HCM Holding, Inc.)1 | | | 13,070,250 | | | | 16,921,290 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Information Technology (54.60%) | |
| | | | Application Software (7.42%) | |
| | 226,500 | | | Gitlab, Inc., Cl A1,4 | | $ | 9,190,621 | | | $ | 13,209,480 | |
| | 175,100 | | | Guidewire Software, Inc.1 | | | 5,058,280 | | | | 20,435,921 | |
| | 23,700 | | | HubSpot, Inc.1 | | | 8,267,320 | | | | 14,849,472 | |
| | 33,500 | | | ServiceNow, Inc.1,4 | | | 6,318,061 | | | | 25,540,400 | |
| | 84,200 | | | Workday, Inc., Cl A1 | | | 14,068,302 | | | | 22,965,550 | |
| | | | | | | | | | | | |
| | | | 42,902,584 | | | | 97,000,823 | |
| |
| | | | Internet Services & Infrastructure (1.30%) | |
| | 220,500 | | | Shopify, Inc., Cl A1,2 | | | 8,065,470 | | | | 17,015,985 | |
| |
| | | | IT Consulting & Other Services (3.01%) | |
| | 82,687 | | | Gartner, Inc.1 | | | 3,622,097 | | | | 39,414,412 | |
| |
| | | | Semiconductor Materials &
Equipment (2.35%) | |
| | 21,300 | | | ASML Holding N.V.2 | | | 10,043,235 | | | | 20,671,011 | |
| | 10,400 | | | Lam Research Corp. | | | 7,886,287 | | | | 10,104,328 | |
| | | | | | | | | | | | |
| | | | 17,929,522 | | | | 30,775,339 | |
| |
| | | | Semiconductors (22.37%) | |
| | 218,400 | | | Advanced Micro Devices, Inc.1 | | | 18,467,008 | | | | 39,419,016 | |
| | 156,010 | | | Astera Labs, Inc.1 | | | 5,616,360 | | | | 11,574,382 | |
| | 18,900 | | | Broadcom, Inc. | | | 24,920,439 | | | | 25,050,249 | |
| | 3,047,600 | | | indie Semiconductor, Inc., Cl A1 | | | 20,711,288 | | | | 21,577,008 | |
| | 188,400 | | | Marvell Technology, Inc. | | | 7,574,280 | | | | 13,353,792 | |
| | 21,700 | | | Monolithic Power Systems, Inc. | | | 8,272,571 | | | | 14,700,014 | |
| | 167,400 | | | NVIDIA Corp. | | | 12,920,458 | | | | 151,255,944 | |
| | 115,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd., ADR2 | | | 13,356,263 | | | | 15,645,750 | |
| | | | | | | | | | | | |
| | | | | | | 111,838,667 | | | | 292,576,155 | |
| |
| | | | Systems Software (18.15%) | |
| | 110,800 | | | Cloudflare, Inc., Cl A1,4 | | | 4,372,897 | | | | 10,728,764 | |
| | 57,423 | | | Crowdstrike Holdings, Inc., Cl A1 | | | 3,453,213 | | | | 18,409,240 | |
| | 130,000 | | | Datadog, Inc., Cl A1,4 | | | 10,938,166 | | | | 16,068,000 | |
| | 428,400 | | | Microsoft Corporation | | | 63,017,174 | | | | 180,236,448 | |
| | 74,508 | | | Snowflake, Inc., Cl A1,4 | | | 9,803,991 | | | | 12,040,493 | |
| | | | | | | | | | | | |
| | | | | | | 91,585,441 | | | | 237,482,945 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 275,943,781 | | | | 714,265,659 | |
| | | | | | | | | | | | |
|
| Real Estate (4.23%) | |
| | | | Data Center REITs (0.91%) | |
| | 14,425 | | | Equinix, Inc. | | | 2,625,844 | | | | 11,905,385 | |
| | | | Real Estate Services (3.32%) | |
| | 450,130 | | | CoStar Group, Inc.1 | | | 22,656,056 | | | | 43,482,558 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 25,281,900 | | | | 55,387,943 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 541,765,161 | | | | 1,254,688,974 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (1.15%) | |
| Communication Services (0.10%) | | | | | | |
| | | | Interactive Media & Services (0.10%) | |
| | 50,000 | | | X Holdings I, Inc., Cl A1,3,4,6 | | | 5,000,000 | | | | 1,366,000 | |
| | | | | | | | | | | | |
| | |
| 22 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Opportunity Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Private Common Stocks (continued) | |
| Industrials (1.02%) | |
| | | | Aerospace & Defense (1.02%) | |
| | 105,020 | | | Space Exploration Technologies Corp., Cl A1,3,4,6 | | $ | 4,607,169 | | | $ | 10,186,940 | |
| | 31,890 | | | Space Exploration Technologies Corp., Cl C1,3,4,6 | | | 1,392,972 | | | | 3,093,330 | |
| | | | | | | | | | | | |
| | | | | | | 6,000,141 | | | | 13,280,270 | |
| |
| | | | Passenger Ground
Transportation (0.00%)^ | |
| | 3,571 | | | GM Cruise Holdings LLC, Cl B1,3,4,6 | | | 103,563 | | | | 21,676 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 6,103,704 | | | | 13,301,946 | |
| | | | | | | | | | | | |
|
| Materials (0.03%) | |
| | | | Fertilizers & Agricultural
Chemicals (0.03%) | |
| | 182,067 | | | Farmers Business
Network, Inc.1,3,4,6 | | | 2,394,652 | | | | 338,645 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 13,498,356 | | | | 15,006,591 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Convertible Preferred Stocks (0.21%) | |
| Materials (0.21%) | | | | | | |
| | | | Fertilizers & Agricultural
Chemicals (0.21%) | |
| | 37,254 | | | Farmers Business
Network, Inc. Series F1,3,4,6 | | | 4,855,355 | | | | 684,729 | |
| | 615,761 | | | Farmers Business
Network, Inc., Units1,3,4,6 | | | 615,761 | | | | 2,081,272 | |
| | | | | | | | | | | | |
| | Total Private Convertible Preferred Stocks | | | 5,471,116 | | | | 2,766,001 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Preferred Stocks (1.50%) | |
| Industrials (1.50%) | | | | | | |
| | | | Aerospace & Defense (1.37%) | |
| | 18,519 | | | Space Exploration
Technologies Corp., Series N1,3,4,6 | | | 5,000,130 | | | | 17,963,430 | |
| |
| | | | Passenger Ground
Transportation (0.13%) | |
| | 266,956 | | | GM Cruise Holdings LLC, Cl G1,3,4,6 | | | 7,034,290 | | | | 1,620,423 | |
| | | | | | | | | | | | |
| | Total Private Preferred Stocks | | | 12,034,420 | | | | 19,583,853 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short-Term Investments (1.01%) | |
| | $13,197,327 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 3/28/2024, 4.85% due 4/1/2024; Proceeds at maturity $13,204,438; (Fully Collateralized by $14,701,400 U.S. Treasury Note, 0.75% due 8/31/2026 Market value - $13,461,319)5 | | $ | 13,197,327 | | | $ | 13,197,327 | |
| | | | | | | | | | | | |
| | Total Investments (99.78%) | | $ | 585,966,380 | | | | 1,305,242,746 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.22%) | | | | 2,916,374 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 1,308,159,120 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At March 31, 2024, the market value of restricted and fair valued securities amounted to $37,356,445 or 2.86% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 6 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ^ | Rounds to less than 0.01%. |
| ADR | American Depositary Receipt. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 23 |
| | |
| Baron Fifth Avenue Growth Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (98.70%) | |
| Communication Services (12.35%) | |
| | | | Advertising (3.61%) | | | | | | | | |
| | 252,622 | | | The Trade Desk, Inc., Cl A1 | | $ | 14,551,081 | | | $ | 22,084,215 | |
| |
| | | | Interactive Media & Services (8.74%) | |
| | 62,225 | | | Alphabet, Inc., Cl A1 | | | 8,422,082 | | | | 9,391,620 | |
| | 90,909 | | | Meta Platforms Inc., Cl A | | | 6,630,519 | | | | 44,143,592 | |
| | | | | | | | | | | | |
| | | | 15,052,601 | | | | 53,535,212 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 29,603,682 | | | | 75,619,427 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (18.64%) | |
| | | | Automobile Manufacturers (3.54%) | |
| | 471,580 | | | Rivian Automotive, Inc., Cl A1 | | | 12,257,318 | | | | 5,163,801 | |
| | 93,883 | | | Tesla, Inc.1 | | | 24,345,419 | | | | 16,503,693 | |
| | | | | | | | | | | | |
| | | | 36,602,737 | | | | 21,667,494 | |
| |
| | | | Automotive Parts & Equipment (1.23%) | |
| | 234,652 | | | Mobileye Global, Inc., Cl A1 | | | 5,848,393 | | | | 7,544,062 | |
| |
| | | | Broadline Retail (13.87%) | |
| | 287,686 | | | Amazon.com, Inc.1 | | | 2,726,880 | | | | 51,892,801 | |
| | 680,704 | | | Coupang, Inc., Cl A1 | | | 12,159,012 | | | | 12,109,724 | |
| | 13,817 | | | MercadoLibre, Inc.1 | | | 9,299,061 | | | | 20,890,751 | |
| | | | | | | | | | | | |
| | | | 24,184,953 | | | | 84,893,276 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 66,636,083 | | | | 114,104,832 | |
| | | | | | | | | | | | |
|
| Financials (6.52%) | |
| | | | Transaction & Payment Processing
Services (6.52%) | |
| | 5,491 | | | Adyen N.V., 144A (Netherlands)1,2,5 | | | 4,111,141 | | | | 9,275,048 | |
| | 155,798 | | | Block, Inc.1 | | | 9,308,980 | | | | 13,177,395 | |
| | 36,284 | | | MasterCard Incorporated, Cl A | | | 1,493,353 | | | | 17,473,286 | |
| | | | | | | | | | | | |
| | Total Financials | | | 14,913,474 | | | | 39,925,729 | |
| | | | | | | | | | | | |
|
| Health Care (9.64%) | |
| | | | Biotechnology (2.11%) | |
| | 32,834 | | | argenx SE, ADR1,2 | | | 10,908,181 | | | | 12,927,403 | |
| |
| | | | Health Care Equipment (4.88%) | |
| | 74,792 | | | Intuitive Surgical, Inc.1 | | | 8,845,700 | | | | 29,848,739 | |
| |
| | | | Health Care Technology (1.66%) | |
| | 43,814 | | | Veeva Systems, Inc., Cl A1 | | | 2,802,912 | | | | 10,151,266 | |
| |
| | | | Life Sciences Tools & Services (0.99%) | |
| | 44,160 | | | Illumina, Inc.1 | | | 4,995,828 | | | | 6,064,051 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 27,552,621 | | | | 58,991,459 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Information Technology (51.55%) | |
| | | | Application Software (8.91%) | |
| | 34,349 | | | Atlassian Corp., Cl A1,2 | | $ | 8,918,542 | | | $ | 6,701,833 | |
| | 108,633 | | | Gitlab, Inc., Cl A1,4 | | | 6,989,883 | | | | 6,335,477 | |
| | 54,458 | | | ServiceNow, Inc.1,4 | | | 20,815,805 | | | | 41,518,779 | |
| | | | | | | | | | | | |
| | | | 36,724,230 | | | | 54,556,089 | |
| |
| | | | Internet Services & Infrastructure (5.18%) | |
| | 411,171 | | | Shopify, Inc., Cl A1,2 | | | 15,469,462 | | | | 31,730,066 | |
| |
| | | | IT Consulting & Other Services (1.25%) | |
| | 201,215 | | | Endava plc, ADR1,2 | | | 18,269,296 | | | | 7,654,219 | |
| |
| | | | Semiconductor Materials &
Equipment (3.10%) | |
| | 19,541 | | | ASML Holding N.V.2 | | | 1,203,894 | | | | 18,963,954 | |
| |
| | | | Semiconductors (14.74%) | |
| | 99,836 | | | NVIDIA Corp. | | | 14,369,276 | | | | 90,207,816 | |
| |
| | | | Systems Software (18.37%) | |
| | 228,022 | | | Cloudflare, Inc., Cl A1,4 | | | 17,270,235 | | | | 22,079,370 | |
| | 87,980 | | | Crowdstrike Holdings, Inc., Cl A1 | | | 4,891,583 | | | | 28,205,508 | |
| | 151,618 | | | Datadog, Inc., Cl A1,4 | | | 9,184,124 | | | | 18,739,985 | |
| | 51,526 | | | Microsoft Corporation | | | 19,723,855 | | | | 21,678,019 | |
| | 134,832 | | | Snowflake, Inc., Cl A1,4 | | | 23,497,594 | | | | 21,788,851 | |
| | | | | | | | | | | | |
| | | | 74,567,391 | | | | 112,491,733 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 160,603,549 | | | | 315,603,877 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 299,309,409 | | | | 604,245,324 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (0.85%) | |
| Industrials (0.85%) | |
| | | | Aerospace & Defense (0.85%) | |
| | 41,330 | | | Space Exploration
Technologies Corp., Cl A1,3,4,6 | | | 1,932,253 | | | | 4,009,010 | |
| | 12,240 | | | Space Exploration
Technologies Corp., Cl C1,3,4,6 | | | 567,691 | | | | 1,187,280 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 2,499,944 | | | | 5,196,290 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Preferred Stocks (0.13%) | |
| Industrials (0.13%) | | | | | | |
| | | | Passenger Ground
Transportation (0.13%) | |
| | 133,288 | | | GM Cruise Holdings LLC, Cl G1,3,4,6 | | | 3,512,139 | | | | 809,058 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| 24 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Fifth Avenue Growth Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| | | |
| Principal Amount | | Cost | | | Value | |
| Short-Term Investments (0.30%) | |
| | $1,815,543 | | | Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 3/28/2024, 4.85%
due 4/1/2024; Proceeds at
maturity $1,816,522;
(Fully Collateralized by
$2,022,500 U.S. Treasury Note,
0.75% due 8/31/2026
Market value - $1,851,900)5 | | $ | 1,815,543 | | | $ | 1,815,543 | |
| | | | | | | | | | | | |
| | Total Investments (99.98%) | | $ | 307,137,035 | | | | 612,066,215 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.02%) | | | | 134,171 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 612,200,386 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At March 31, 2024, the market value of restricted and fair valued securities amounted to $6,005,348 or 0.98% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 6 | Level 3 secruity. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At March 31, 2024, the market value of Rule 144A securities amounted to $9,275,048 or 1.52% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 25 |
| | |
| Baron Discovery Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (96.73%) | |
| Communication Services (2.71%) | |
| | | | Interactive Media &
Services (0.44%) | | | | | | | | |
| | 138,143 | | | Reddit, Inc., Cl A1 | | $ | 4,696,862 | | | $ | 6,813,213 | |
| |
| | | | Movies & Entertainment (2.27%) | |
| | 185,000 | | | Liberty Media Corporation-Liberty Formula One, Cl A1 | | | 5,408,362 | | | | 10,866,900 | |
| | 550,000 | | | Liberty Media Corporation-Liberty Live, Cl C1 | | | 18,822,683 | | | | 24,101,000 | |
| | | | | | | | | | | | |
| | | | 24,231,045 | | | | 34,967,900 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 28,927,907 | | | | 41,781,113 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (14.76%) | |
| | | | Casinos & Gaming (7.51%) | |
| | 535,000 | | | Boyd Gaming Corporation | | | 33,074,142 | | | | 36,016,200 | |
| | 1,235,000 | | | DraftKings, Inc., Cl A1 | | | 23,984,451 | | | | 56,081,350 | |
| | 395,000 | | | Red Rock Resorts, Inc., Cl A | | | 14,152,337 | | | | 23,628,900 | |
| | | | | | | | | | | | |
| | | | 71,210,930 | | | | 115,726,450 | |
| |
| | | | Footwear (1.15%) | |
| | 500,000 | | | On Holding AG, Cl A1,2 | | | 12,219,945 | | | | 17,690,000 | |
| |
| | | | Home Improvement Retail (2.52%) | |
| | 300,000 | | | Floor & Decor Holdings, Inc., Cl A1 | | | 9,074,455 | | | | 38,886,000 | |
| |
| | | | Homefurnishing Retail (1.58%) | |
| | 70,000 | | | RH1 | | | 18,069,077 | | | | 24,378,200 | |
| |
| | | | Restaurants (2.00%) | |
| | 200,000 | | | Texas Roadhouse, Inc. | | | 17,901,519 | | | | 30,894,000 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 128,475,926 | | | | 227,574,650 | |
| | | | | | | | | | | | |
|
| Financials (3.59%) | |
| | | | Asset Management & Custody
Banks (0.18%) | |
| | 25,000 | | | Hamilton Lane, Inc., Cl A | | | 2,946,204 | | | | 2,819,000 | |
| |
| | | | Property & Casualty Insurance (3.41%) | |
| | 100,000 | | | Kinsale Capital Group, Inc. | | | 4,813,070 | | | | 52,474,000 | |
| | | | | | | | | | | | |
| | Total Financials | | | 7,759,274 | | | | 55,293,000 | |
| | | | | | | | | | | | |
|
| Health Care (18.45%) | |
| | | | Health Care Equipment (8.27%) | |
| | 562,982 | | | Axonics, Inc.1 | | | 24,201,598 | | | | 38,828,869 | |
| | 596,078 | | | Inari Medical, Inc.1 | | | 30,435,721 | | | | 28,599,822 | |
| | 265,000 | | | Masimo Corp.1 | | | 35,939,618 | | | | 38,915,250 | |
| | 1,150,864 | | | Silk Road Medical, Inc.1 | | | 26,876,762 | | | | 21,083,829 | |
| | | | | | | | | | | | |
| | | | 117,453,699 | | | | 127,427,770 | |
| |
| | | | Health Care Supplies (1.09%) | |
| | 329,000 | | | Establishment Labs Holdings, Inc.1,2 | | | 20,105,991 | | | | 16,746,100 | |
| |
| | | | Health Care Technology (2.22%) | |
| | 700,591 | | | Certara, Inc.1 | | | 14,628,630 | | | | 12,526,567 | |
| | 2,684,590 | | | Definitive Healthcare Corp.1 | | | 48,189,355 | | | | 21,664,641 | |
| | | | | | | | | | | | |
| | | | 62,817,985 | | | | 34,191,208 | |
| |
| | | | Life Sciences Tools & Services (6.62%) | |
| | 240,000 | | | 10X Genomics, Inc., Cl A1 | | | 10,693,794 | | | | 9,007,200 | |
| | 943,727 | | | CareDx, Inc.1,3 | | | 10,152,398 | | | | 9,994,069 | |
| | 1,629,676 | | | Maravai LifeSciences
Holdings, Inc., Cl A1 | | | 15,496,854 | | | | 14,129,291 | |
| | 122,500 | | | Repligen Corp.1 | | | 19,531,284 | | | | 22,530,200 | |
| | 847,712 | | | Stevanato Group SpA2 | | | 23,956,215 | | | | 27,211,555 | |
| | 868,790 | | | Veracyte, Inc.1,3 | | | 22,690,855 | | | | 19,252,386 | |
| | | | | | | | | | | | |
| | | | 102,521,400 | | | | 102,124,701 | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
|
| Health Care (continued) | |
| |
| | | | Pharmaceuticals (0.25%) | |
| | 775,832 | | | Revance Therapeutics, Inc.1 | | $ | 11,448,086 | | | $ | 3,817,093 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 314,347,161 | | | | 284,306,872 | |
| | | | | | | | | | | | |
|
| Industrials (21.66%) | |
| | | | Aerospace & Defense (7.00%) | |
| | 144,095 | | | Axon Enterprise, Inc.1 | | | 15,830,703 | | | | 45,084,444 | |
| | 1,942,158 | | | Kratos Defense & Security Solutions, Inc.1 | | | 26,482,410 | | | | 35,696,864 | |
| | 920,380 | | | Mercury Systems, Inc.1 | | | 33,144,240 | | | | 27,151,210 | |
| | | | | | | | | | | | |
| | | | 75,457,353 | | | | 107,932,518 | |
| |
| | | | Building Products (2.44%) | |
| | 200,000 | | | AAON, Inc. | | | 14,505,982 | | | | 17,620,000 | |
| | 200,000 | | | Trex Co., Inc.1 | | | 7,842,211 | | | | 19,950,000 | |
| | | | | | | | | | | | |
| | | | | | | 22,348,193 | | | | 37,570,000 | |
| |
| | | | Diversified Support Services (0.18%) | |
| | 146,576 | | | ACV Auctions, Inc., Cl A1 | | | 2,937,630 | | | | 2,751,231 | |
| |
| | | | Environmental & Facilities
Services (2.21%) | |
| | 869,583 | | | Montrose Environmental
Group, Inc.1 | | | 19,287,297 | | | | 34,061,566 | |
| |
| | | | Human Resource & Employment
Services (3.91%) | |
| | 326,131 | | | ASGN, Inc.1 | | | 31,749,731 | | | | 34,165,484 | |
| | 395,000 | | | Dayforce, Inc. (formerly, Cerdian HCM Holding, Inc.)1 | | | 21,822,194 | | | | 26,152,950 | |
| | | | | | | | | | | | |
| | | | | | | 53,571,925 | | | | 60,318,434 | |
| |
| | | | Industrial Machinery &
Supplies & Components (3.37%) | |
| | 225,000 | | | Chart Industries, Inc.1 | | | 30,390,512 | | | | 37,062,000 | |
| | 55,000 | | | RBC Bearings, Inc.1 | | | 11,183,890 | | | | 14,869,250 | |
| | | | | | | | | | | | |
| | | | | | | 41,574,402 | | | | 51,931,250 | |
| |
| | | | Trading Companies &
Distributors (2.55%) | |
| | 225,000 | | | SiteOne Landscape Supply, Inc.1 | | | 16,625,881 | | | | 39,273,750 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 231,802,681 | | | | 333,838,749 | |
| | | | | | | | | | | | |
|
| Information Technology (33.44%) | |
| | | | Application Software (10.21%) | |
| | 600,000 | | | Alkami Technology, Inc.1 | | | 13,160,838 | | | | 14,742,000 | |
| | 1,750,000 | | | Clearwater Analytics
Holdings, Inc., Cl A1 | | | 31,185,997 | | | | 30,957,500 | |
| | 677,889 | | | Gitlab, Inc., Cl A1,3 | | | 25,647,628 | | | | 39,534,487 | |
| | 235,357 | | | Guidewire Software, Inc.1 | | | 18,259,547 | | | | 27,468,515 | |
| | 500,000 | | | Intapp, Inc.1 | | | 18,215,211 | | | | 17,150,000 | |
| | 1,750,000 | | | SmartRent, Inc.1,3 | | | 4,499,473 | | | | 4,690,000 | |
| | 595,000 | | | Smartsheet, Inc., Cl A1 | | | 22,340,547 | | | | 22,907,500 | |
| | | | | | | | | | | | |
| | | | | | | 133,309,241 | | | | 157,450,002 | |
| |
| | | | Electronic Equipment &
Instruments (5.51%) | |
| | 395,321 | | | Advanced Energy Industries, Inc. | | | 27,937,769 | | | | 40,314,835 | |
| | 74,131 | | | Novanta, Inc.1,2 | | | 8,196,882 | | | | 12,955,875 | |
| | 700,000 | | | PAR Technology Corp.1 | | | 22,991,689 | | | | 31,752,000 | |
| | | | | | | | | | | | |
| | | | | | | 59,126,340 | | | | 85,022,710 | |
| |
| | | | IT Consulting & Other Services (0.62%) | |
| | 250,000 | | | Endava plc, ADR1,2 | | | 6,125,604 | | | | 9,510,000 | |
| | |
| 26 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Discovery Fund |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
|
| Information Technology (continued) | |
| |
| | | | Semiconductor Materials &
Equipment (1.55%) | |
| | 135,000 | | | Nova Ltd.1,2 | | $ | 3,115,172 | | | $ | 23,946,300 | |
| |
| | | | Semiconductors (4.77%) | |
| | 613,200 | | | Allegro MicroSystems, Inc.1 | | | 16,833,405 | | | | 16,531,872 | |
| | 181,168 | | | Astera Labs, Inc.1 | | | 6,522,048 | | | | 13,440,854 | |
| | 4,057,493 | | | indie Semiconductor, Inc., Cl A1 | | | 34,900,206 | | | | 28,727,051 | |
| | 1,064,620 | | | Navitas Semiconductor Corp.1 | | | 6,604,000 | | | | 5,078,237 | |
| | 104,000 | | | SiTime Corp.1 | | | 10,725,454 | | | | 9,695,920 | |
| | | | | | | | | | | | |
| | | | | | | 75,585,113 | | | | 73,473,934 | |
| |
| | | | Systems Software (10.78%) | |
| | 1,444,900 | | | Couchbase, Inc.1,3 | | | 31,053,248 | | | | 38,015,319 | |
| | 160,200 | | | CyberArk Software Ltd.1,2 | | | 20,574,697 | | | | 42,553,926 | |
| | 430,775 | | | Dynatrace, Inc.1,3 | | | 10,425,483 | | | | 20,005,191 | |
| | 1,575,000 | | | SentinelOne, Inc., Cl A1 | | | 24,893,625 | | | | 36,713,250 | |
| | 611,000 | | | Varonis Systems, Inc.1 | | | 13,653,727 | | | | 28,820,870 | |
| | | | | | | | | | | | |
| | | | | | | 100,600,780 | | | | 166,108,556 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 377,862,250 | | | | 515,511,502 | |
| | | | | | | | | | | | |
|
| Real Estate (2.12%) | |
| | | | Industrial REITs (2.12%) | |
| | 650,000 | | | Rexford Industrial Realty, Inc. | | | 31,657,136 | | | | 32,695,000 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,120,832,335 | | | | 1,491,000,886 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short-Term Investments (3.36%) | |
| | $51,733,058 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 3/28/2024, 4.85% due 4/1/2024; Proceeds at maturity $51,760,936; (Fully Collateralized by $57,628,800 U.S. Treasury Note, 0.75% due 8/31/2026 Market value - $52,767,740)4 | | $ | 51,733,058 | | | $ | 51,733,058 | |
| | | | | | | | | | | | |
| | Total Investments (100.09%) | | $ | 1,172,565,393 | | | | 1,542,733,944 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.09%) | | | | (1,372,226 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 1,541,361,718 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 4 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 27 |
| | |
| Baron Durable Advantage Fund | | March 31, 2024 |
PORTFOLIO OF INVESTMENTS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (96.74%) | |
| Communication Services (11.95%) | |
| | | | Interactive Media & Services (11.95%) | | | | | | | | |
| | 92,722 | | | Alphabet, Inc., Cl C1 | | $ | 11,681,886 | | | $ | 14,117,852 | |
| | 52,146 | | | Meta Platforms, Inc., Cl A | | | 15,017,997 | | | | 25,321,054 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 26,699,883 | | | | 39,438,906 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (7.54%) | |
| | | | Broadline Retail (7.54%) | |
| | 137,898 | | | Amazon.com, Inc.1 | | | 18,914,907 | | | | 24,874,041 | |
| | | | | | | | | | | | |
|
| Consumer Staples (1.71%) | |
| | | | Consumer Staples Merchandise
Retail (1.71%) | |
| | 7,715 | | | Costco Wholesale Corp. | | | 4,325,406 | | | | 5,652,240 | |
| | | | | | | | | | | | |
|
| Financials (32.53%) | |
| | | | Asset Management & Custody
Banks (5.74%) | |
| | 77,140 | | | Blackstone, Inc. | | | 8,668,626 | | | | 10,133,882 | |
| | 210,389 | | | Brookfield Corp.2 | | | 7,962,155 | | | | 8,808,987 | |
| | | | | | | | | | | | |
| | | | 16,630,781 | | | | 18,942,869 | |
| |
| | | | Diversified Financial Services (2.74%) | |
| | 80,507 | | | Apollo Global Management, Inc. | | | 8,103,707 | | | | 9,053,012 | |
| |
| | | | Financial Exchanges & Data (11.50%) | |
| | 31,966 | | | CME Group, Inc. | | | 6,454,069 | | | | 6,881,960 | |
| | 28,297 | | | Moody’s Corp. | | | 9,881,413 | | | | 11,121,570 | |
| | 12,942 | | | MSCI, Inc. | | | 6,625,800 | | | | 7,253,344 | |
| | 29,817 | | | S&P Global, Inc. | | | 11,654,186 | | | | 12,685,643 | |
| | | | | | | | | | | | |
| | | | 34,615,468 | | | | 37,942,517 | |
| |
| | | | Investment Banking & Brokerage (2.22%) | |
| | 27,727 | | | LPL Financial Holdings, Inc. | | | 6,406,994 | | | | 7,325,474 | |
| |
| | | | Property & Casualty Insurance (2.47%) | |
| | 88,182 | | | Arch Capital Group Ltd.1,2 | | | 5,523,458 | | | | 8,151,544 | |
| |
| | | | Transaction & Payment Processing
Services (7.86%) | |
| | 23,590 | | | MasterCard, Incorporated, Cl A | | | 9,517,135 | | | | 11,360,236 | |
| | 52,234 | | | Visa, Inc., Cl A | | | 13,055,271 | | | | 14,577,465 | |
| | | | | | | | | | | | |
| | | | 22,572,406 | | | | 25,937,701 | |
| | | | | | | | | | | | |
| | Total Financials | | | 93,852,814 | | | | 107,353,117 | |
| | | | | | | | | | | | |
|
| Health Care (10.65%) | |
| | | | Life Sciences Tools & Services (7.69%) | |
| | 33,651 | | | Agilent Technologies, Inc. | | | 4,304,806 | | | | 4,896,557 | |
| | 31,990 | | | Danaher Corp. | | | 7,089,542 | | | | 7,988,543 | |
| | 2,582 | | | Mettler-Toledo International, Inc.1 | | | 2,958,314 | | | | 3,437,390 | |
| | 15,561 | | | Thermo Fisher Scientific, Inc. | | | 7,947,528 | | | | 9,044,209 | |
| | | | | | | | | | | | |
| | | | 22,300,190 | | | | 25,366,699 | |
| |
| | | | Managed Health Care (2.96%) | |
| | 19,745 | | | UnitedHealth Group, Incorporated | | | 9,406,206 | | | | 9,767,852 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 31,706,396 | | | | 35,134,551 | |
| | | | | | | | | | | | |
|
| Industrials (2.30%) | |
| | | | Aerospace & Defense (2.30%) | |
| | 49,341 | | | HEICO Corp., Cl A | | | 6,635,824 | | | | 7,595,554 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Information Technology (28.67%) | |
| | | | Application Software (6.39%) | |
| | 18,505 | | | Adobe, Inc.1 | | $ | 9,890,550 | | | $ | 9,337,623 | |
| | 18,069 | | | Intuit, Inc. | | | 9,709,189 | | | | 11,744,850 | |
| | | | | | | | | | | | |
| | | | 19,599,739 | | | | 21,082,473 | |
| |
| | | | Electronic Manufacturing
Services (0.29%) | |
| | 6,675 | | | TE Connectivity Ltd.2 | | | 831,184 | | | | 969,477 | |
| |
| | | | IT Consulting & Other
Services (2.56%) | |
| | 24,323 | | | Accenture plc, Cl A2 | | | 7,822,054 | | | | 8,430,595 | |
| |
| | | | Semiconductors (10.22%) | |
| | 3,105 | | | Broadcom, Inc. | | | 4,169,756 | | | | 4,115,398 | |
| | 8,503 | | | Monolithic Power Systems, Inc. | | | 3,697,232 | | | | 5,760,102 | |
| | 16,174 | | | NVIDIA Corp. | | | 5,530,494 | | | | 14,614,180 | |
| | 51,068 | | | Taiwan Semiconductor Manufacturing Co., Ltd., ADR2 | | | 5,099,498 | | | | 6,947,801 | |
| | 13,085 | | | Texas Instruments, Inc. | | | 2,220,244 | | | | 2,279,538 | |
| | | | | | | | | | | | |
| | | | 20,717,224 | | | | 33,717,019 | |
| |
| | | | Systems Software (9.21%) | |
| | 72,220 | | | Microsoft Corporation | | | 24,330,167 | | | | 30,384,398 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 73,300,368 | | | | 94,583,962 | |
| | | | | | | | | | | | |
|
| Real Estate (1.39%) | |
| | | | Real Estate Services (1.39%) | |
| | 47,570 | | | CoStar Group, Inc.1 | | | 4,222,569 | | | | 4,595,262 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 259,658,167 | | | | 319,227,633 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short-Term Investments (3.58%) | |
| | $11,812,584 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 3/28/2024, 4.85% due 4/1/2024; Proceeds at maturity $11,818,950; (Fully Collateralized by $12,650,600 U.S. Treasury Note, 3.50% due 2/15/2033 Market value - $12,048,898)3 | | | 11,812,584 | | | | 11,812,584 | |
| | | | | | | | | | | | |
| | Total Investments (100.32%) | | $ | 271,470,751 | | | | 331,040,217 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.32%) | | | | | | | (1,065,603 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | | | | $ | 329,974,614 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
All securities are Level 1, unless otherwise noted.
| | |
| 28 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Baron Asset
Fund | | | Baron Growth
Fund | | | Baron Small
Cap Fund | | | Baron
Opportunity
Fund | |
Assets: | | | | | | | | | | | | | | | | |
Investments in securities, at value* | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 4,566,067,386 | | | $ | 7,026,319,038 | | | $ | 5,117,605,431 | | | $ | 1,305,242,746 | |
“Affiliated” investments | | | — | | | | 1,017,640,000 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total investments, at value | | | 4,566,067,386 | | | | 8,043,959,038 | | | | 5,117,605,431 | | | | 1,305,242,746 | |
Cash | | | — | | | | — | | | | — | | | | — | |
Dividends and interest receivable | | | 1,833,961 | | | | 11,719,792 | | | | 2,831,067 | | | | 131,578 | |
Receivable for capital shares sold | | | 1,172,499 | | | | 3,375,020 | | | | 3,229,305 | | | | 7,833,053 | |
Prepaid expenses | | | 59,059 | | | | 107,563 | | | | 62,784 | | | | 15,832 | |
Receivable for securities sold | | | — | | | | — | | | | 16,415,293 | | | | 567,837 | |
| | | | | | | | | | | | | | | | |
| | | 4,569,132,905 | | | | 8,059,161,413 | | | | 5,140,143,880 | | | | 1,313,791,046 | |
| | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Payable for capital shares redeemed | | | 1,435,609 | | | | 4,296,458 | | | | 248,352,346 | | | | 1,205,394 | |
Trustee fees payable (Note 4) | | | 53,393 | | | | 88,050 | | | | 49,384 | | | | 11,880 | |
Distribution fees payable (Note 4) | | | 429 | | | | 787 | | | | 336 | | | | 6 | |
Investment advisory fees payable (Note 4) | | | — | | | | — | | | | — | | | | 245 | |
Due to custodian bank | | | — | | | | 1,835,865 | | | | — | | | | — | |
Payable for securities purchased | | | — | | | | 1,245,197 | | | | 9,401,517 | | | | 4,272,077 | |
Other accrued expenses and other payables | | | 511,056 | | | | 1,065,121 | | | | 580,561 | | | | 142,324 | |
| | | | | | | | | | | | | | | | |
| | | 2,000,487 | | | | 8,531,478 | | | | 258,384,144 | | | | 5,631,926 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 4,567,132,418 | | | $ | 8,050,629,935 | | | $ | 4,881,759,736 | | | $ | 1,308,159,120 | |
| | | | | | | | | | | | | | | | |
Net Assets consist of: | | | | | | | | | | | | | | | | |
Paid-in capital | | $ | 775,447,626 | | | $ | 887,739,647 | | | $ | 1,847,538,202 | | | $ | 654,005,767 | |
Distributable earnings/(losses) | | | 3,791,684,792 | | | | 7,162,890,288 | | | | 3,034,221,534 | | | | 654,153,353 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 4,567,132,418 | | | $ | 8,050,629,935 | | | $ | 4,881,759,736 | | | $ | 1,308,159,120 | |
| | | | | | | | | | | | | | | | |
Retail Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 2,255,176,785 | | | $ | 2,368,749,618 | | | $ | 1,412,151,537 | | | $ | 618,340,177 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 21,716,682 | | | | 23,480,798 | | | | 41,764,725 | | | | 15,206,735 | |
| | | | | | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 103.85 | | | $ | 100.88 | | | $ | 33.81 | | | $ | 40.66 | |
| | | | | | | | | | | | | | | | |
Institutional Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 2,153,022,847 | | | $ | 5,433,219,282 | | | $ | 3,163,784,349 | | | $ | 651,808,209 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 19,532,785 | | | | 50,939,413 | | | | 86,545,416 | | | | 15,043,675 | |
| | | | | | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 110.23 | | | $ | 106.66 | | | $ | 36.56 | | | $ | 43.33 | |
| | | | | | | | | | | | | | | | |
R6 Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 158,932,786 | | | $ | 248,661,035 | | | $ | 305,823,850 | | | $ | 38,010,734 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 1,442,353 | | | | 2,331,194 | | | | 8,369,811 | | | | 876,339 | |
| | | | | | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 110.19 | | | $ | 106.67 | | | $ | 36.54 | | | $ | 43.37 | |
| | | | | | | | | | | | | | | | |
| | | | |
*Investments in securities, at cost: | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 1,168,328,649 | | | $ | 922,559,386 | | | $ | 2,387,839,705 | | | $ | 585,966,380 | |
“Affiliated” investments | | | — | | | | 176,672,399 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total investments, at cost | | $ | 1,168,328,649 | | | $ | 1,099,231,785 | | | $ | 2,387,839,705 | | | $ | 585,966,380 | |
| | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 29 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
| | | | | | | | | | | | |
| | | Baron Fifth
Avenue Growth
Fund | | | Baron
Discovery Fund | | | Baron Durable
Advantage Fund | |
Assets: | | | | | | | | | | | | |
Investments in securities, at value*
Unaffiliated investments | | $ | 612,066,215 | | | $ | 1,542,733,944 | | | $ | 331,040,217 | |
“Affiliated” investments | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Total investments, at value | | | 612,066,215 | | | | 1,542,733,944 | | | | 331,040,217 | |
Cash | | | — | | | | — | | | | 14,306 | |
Dividends and interest receivable | | | 978 | | | | 534,124 | | | | 54,034 | |
Receivable for capital shares sold | | | 451,053 | | | | 2,273,151 | | | | 4,329,276 | |
Prepaid expenses | | | 7,600 | | | | 19,177 | | | | 3,293 | |
Receivable for securities sold | | | — | | | | 8,875,645 | | | | — | |
| | | | | | | | | | | | |
| | | 612,525,846 | | | | 1,554,436,041 | | | | 335,441,126 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Payable for capital shares redeemed | | | 231,282 | | | | 950,223 | | | | 49,727 | |
Trustee fees payable (Note 4) | | | 5,520 | | | | 15,140 | | | | 1,079 | |
Distribution fees payable (Note 4) | | | — | | | | 741 | | | | 238 | |
Investment advisory fees payable (Note 4) | | | 745 | | | | 66 | | | | 844 | |
Due to custodian bank | | | — | | | | — | | | | — | |
Payable for securities purchased | | | — | | | | 11,892,334 | | | | 5,346,149 | |
Other accrued expenses and other payables | | | 87,913 | | | | 215,819 | | | | 68,475 | |
| | | | | | | | | | | | |
| | | 325,460 | | | | 13,074,323 | | | | 5,466,512 | |
| | | | | | | | | | | | |
Net Assets | | $ | 612,200,386 | | | $ | 1,541,361,718 | | | $ | 329,974,614 | |
| | | | | | | | | | | | |
Net Assets consist of: | | | | | | | | | | | | |
Paid-in capital | | $ | 320,359,716 | | | $ | 1,372,967,485 | | | $ | 272,670,733 | |
Distributable earnings/(losses) | | | 291,840,670 | | | | 168,394,233 | | | | 57,303,881 | |
| | | | | | | | | | | | |
Net Assets | | $ | 612,200,386 | | | $ | 1,541,361,718 | | | $ | 329,974,614 | |
| | | | | | | | | | | | |
Retail Shares: | | | | | | | | | | | | |
Net Assets | | $ | 127,298,380 | | | $ | 144,451,570 | | | $ | 87,466,317 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 2,696,887 | | | | 5,067,360 | | | | 3,545,501 | |
| | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 47.20 | | | $ | 28.51 | | | $ | 24.67 | |
| | | | | | | | | | | | |
Institutional Shares: | | | | | | | | | | | | |
Net Assets | | $ | 453,565,229 | | | $ | 1,339,414,209 | | | $ | 234,954,936 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 9,289,889 | | | | 45,724,953 | | | | 9,393,196 | |
| | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 48.82 | | | $ | 29.29 | | | $ | 25.01 | |
| | | | | | | | | | | | |
R6 Shares: | | | | | | | | | | | | |
Net Assets | | $ | 31,336,777 | | | $ | 57,495,939 | | | $ | 7,553,361 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 641,977 | | | | 1,962,660 | | | | 301,952 | |
| | | | | | | | | | | | |
Net Asset Value Per Share | | $ | 48.81 | | | $ | 29.29 | | | $ | 25.02 | |
| | | | | | | | | | | | |
| | | |
*Investments in securities, at cost: | | | | | | | | | | | | |
Unaffiliated investments | | $ | 307,137,035 | | | $ | 1,172,565,393 | | | $ | 271,470,751 | |
“Affiliated” investments | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Total investments, at cost | | $ | 307,137,035 | | | $ | 1,172,565,393 | | | $ | 271,470,751 | |
| | | | | | | | | | | | |
| | |
| 30 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
STATEMENTS OF OPERATIONS (Unaudited)
|
FORTHE SIX MONTHS ENDED MARCH 31, 2024 |
| | | | | | | | | | | | | | | | |
| | | Baron Asset
Fund | | | Baron Growth
Fund | | | Baron Small
Cap Fund | | | Baron
Opportunity
Fund | |
Investment income (loss): | | | | | | | | | | | | | | | | |
Income: | | | | | | | | | | | | | | | | |
Dividends — Unaffiliated investments1 | | $ | 11,090,788 | | | $ | 30,741,864 | | | $ | 14,959,441 | | | $ | 1,275,132 | |
Dividends — “Affiliated” investments | | | — | | | | 15,521,911 | | | | — | | | | — | |
Interest | | | 1,139,723 | | | | 23,488 | | | | 4,122,461 | | | | 288,438 | |
| | | | | | | | | | | | | | | | |
Total income | | | 12,230,511 | | | | 46,287,263 | | | | 19,081,902 | | | | 1,563,570 | |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Investment advisory fees (Note 4) | | | 22,519,699 | | | | 38,313,470 | | | | 22,539,584 | | | | 5,664,444 | |
Distribution fees — Retail Shares (Note 4) | | | 2,632,120 | | | | 2,831,557 | | | | 1,581,579 | | | | 690,384 | |
Shareholder servicing agent fees and expenses — Retail Shares | | | 104,990 | | | | 87,350 | | | | 58,100 | | | | 34,490 | |
Shareholder servicing agent fees and expenses — Institutional Shares | | | 35,170 | | | | 63,290 | | | | 45,230 | | | | 13,810 | |
Shareholder servicing agent fees and expenses — R6 Shares | | | 4,234 | | | | 6,491 | | | | 6,887 | | | | 912 | |
Reports to shareholders | | | 389,200 | | | | 486,900 | | | | 502,400 | | | | 71,760 | |
Trustee fees and expenses (Note 4) | | | 114,432 | | | | 190,385 | | | | 107,247 | | | | 27,523 | |
Registration and filing fees | | | 76,340 | | | | 164,400 | | | | 76,800 | | | | 58,940 | |
Custodian and fund accounting fees | | | 67,070 | | | | 134,070 | | | | 67,372 | | | | 19,163 | |
Professional fees | | | 54,900 | | | | 79,830 | | | | 47,980 | | | | 30,524 | |
Administration fees | | | 41,907 | | | | 55,632 | | | | 41,907 | | | | 24,888 | |
Insurance expense | | | 34,366 | | | | 57,628 | | | | 33,678 | | | | 6,884 | |
Line of credit fees | | | 33,200 | | | | 54,720 | | | | 31,560 | | | | 6,928 | |
Miscellaneous expenses | | | 2,650 | | | | 2,625 | | | | 3,700 | | | | 2,600 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 26,110,278 | | | | 42,528,348 | | | | 25,144,024 | | | | 6,653,250 | |
Interest expense on borrowings | | | — | | | | 1,471,684 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total gross expenses | | | 26,110,278 | | | | 44,000,032 | | | | 25,144,024 | | | | 6,653,250 | |
Management fees waived/expenses reimbursed — Retail Shares (Note 4) | | | — | | | | — | | | | — | | | | — | |
Management fees waived/expenses reimbursed — Institutional Shares (Note 4) | | | — | | | | — | | | | — | | | | — | |
Management fees waived/expenses reimbursed — R6 Shares (Note 4) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total net expenses | | | 26,110,278 | | | | 44,000,032 | | | | 25,144,024 | | | | 6,653,250 | |
| | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (13,879,767 | ) | | | 2,287,231 | | | | (6,062,122 | ) | | | (5,089,680 | ) |
| | | | | | | | | | | | | | | | |
Realized and unrealized gain (loss) on investments: | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments sold — Unaffiliated investments | | | 431,532,867 | | | | 221,968,398 | | | | 328,562,660 | | | | 52,597,484 | |
Net realized gain (loss) on investments sold — “Affiliated” investments | | | — | | | | 12,879,292 | | | | — | | | | — | |
Net realized gain (loss) on foreign currency transactions | | | — | | | | 862 | | | | (301,732 | ) | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments — Unaffiliated investments | | | 373,285,034 | | | | 896,369,809 | | | | 738,561,809 | | | | 273,861,648 | |
Investments — “Affiliated” investments | | | — | | | | (146,110,718 | ) | | | — | | | | — | |
Foreign currency translations | | | — | | | | 255 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net gain (loss) on investments | | | 804,817,901 | | | | 985,107,898 | | | | 1,066,822,737 | | | | 326,459,132 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 790,938,134 | | | $ | 987,395,129 | | | $ | 1,060,760,615 | | | $ | 321,369,452 | |
| | | | | | | | | | | | | | | | |
1 Net of foreign taxes withheld on dividends of | | $ | — | | | $ | — | | | $ | 32,149 | | | $ | 23,226 | |
| | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 31 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
STATEMENTS OF OPERATIONS (Unaudited) (Continued)
|
FORTHE SIX MONTHS ENDED MARCH 31, 2024 |
| | | | | | | | | | | | |
| | | Baron Fifth
Avenue Growth
Fund | | | Baron
Discovery Fund | | | Baron Durable
Advantage Fund | |
Investment income (loss): | | | | | | | | | | | | |
Income: | | | | | | | | | | | | |
Dividends — Unaffiliated investments1 | | $ | 200,172 | | | $ | 1,629,614 | | | $ | 838,149 | |
Dividends — “Affiliated” investments | | | — | | | | — | | | | — | |
Interest | | | 92,150 | | | | 1,665,200 | | | | 222,534 | |
| | | | | | | | | | | | |
Total income | | | 292,322 | | | | 3,294,814 | | | | 1,060,683 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment advisory fees (Note 4) | | | 1,861,796 | | | | 6,852,317 | | | | 654,304 | |
Distribution fees — Retail Shares (Note 4) | | | 140,637 | | | | 169,736 | | | | 58,141 | |
Shareholder servicing agent fees and expenses — Retail Shares | | | 14,920 | | | | 14,320 | | | | 9,783 | |
Shareholder servicing agent fees and expenses — Institutional Shares | | | 10,248 | | | | 24,860 | | | | 8,318 | |
Shareholder servicing agent fees and expenses — R6 Shares | | | 791 | | | | 1,385 | | | | 167 | |
Reports to shareholders | | | 22,200 | | | | 138,160 | | | | 7,578 | |
Trustee fees and expenses (Note 4) | | | 13,100 | | | | 33,269 | | | | 3,231 | |
Registration and filing fees | | | 45,000 | | | | 58,330 | | | | 72,450 | |
Custodian and fund accounting fees | | | 13,151 | | | | 31,319 | | | | 9,605 | |
Professional fees | | | 27,961 | | | | 33,050 | | | | 27,633 | |
Administration fees | | | 23,058 | | | | 26,352 | | | | 21,777 | |
Insurance expense | | | 3,208 | | | | 10,084 | | | | 941 | |
Line of credit fees | | | 7,736 | | | | 9,488 | | | | 1,036 | |
Miscellaneous expenses | | | 2,600 | | | | 2,705 | | | | 7,904 | |
| | | | | | | | | | | | |
Total operating expenses | | | 2,186,406 | | | | 7,405,375 | | | | 882,868 | |
Interest expense on borrowings | | | 3,126 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total gross expenses | | | 2,189,532 | | | | 7,405,375 | | | | 882,868 | |
Management fees waived/expenses reimbursed — Retail Shares (Note 4) | | | (20,042 | ) | | | — | | | | (33,849 | ) |
Management fees waived/expenses reimbursed — Institutional Shares (Note 4) | | | (28,883 | ) | | | — | | | | (82,949 | ) |
Management fees waived/expenses reimbursed — R6 Shares (Note 4) | | | (2,063 | ) | | | — | | | | (3,294 | ) |
| | | | | | | | | | | | |
Total net expenses | | | 2,138,544 | | | | 7,405,375 | | | | 762,776 | |
| | | | | | | | | | | | |
Net investment income (loss) | | | (1,846,222 | ) | | | (4,110,561 | ) | | | 297,907 | |
| | | | | | | | | | | | |
Realized and unrealized gain (loss) on investments: | | | | | | | | | | | | |
Net realized gain (loss) on investments sold — Unaffiliated investments | | | 11,808,583 | | | | 15,410,163 | | | | (222,624 | ) |
Net realized gain (loss) on investments sold — “Affiliated” investments | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency transactions | | | — | | | | — | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | |
Investments — Unaffiliated investments | | | 136,899,004 | | | | 211,674,314 | | | | 44,116,809 | |
Investments — “Affiliated” investments | | | — | | | | — | | | | — | |
Foreign currency translations | | | — | | | | 362 | | | | — | |
| | | | | | | | | | | | |
Net gain (loss) on investments | | | 148,707,587 | | | | 227,084,839 | | | | 43,894,185 | |
| | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 146,861,365 | | | $ | 222,974,278 | | | $ | 44,192,092 | |
| | | | | | | | | | | | |
1 Net of foreign taxes withheld on dividends of | | $ | 9,043 | | | $ | — | | | $ | 13,392 | |
| | | | | | | | | | | | |
| | |
| 32 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Baron Asset Fund | | | Baron Growth Fund | | | Baron Small Cap Fund | |
| | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (13,879,767 | ) | | $ | (29,539,836 | ) | | $ | 2,287,231 | | | $ | (5,149,746 | ) | | $ | (6,062,122 | ) | | $ | (16,221,077 | ) |
Net realized gain (loss) | | | 431,532,867 | | | | 164,608,153 | | | | 234,848,552 | | | | 128,427,884 | | | | 328,260,928 | | | | 145,663,681 | |
Change in net unrealized appreciation (depreciation) | | | 373,285,034 | | | | 531,421,964 | | | | 750,259,346 | | | | 1,082,225,416 | | | | 738,561,809 | | | | 543,818,302 | |
Voluntary payment from Adviser (Note 4) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 573 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | | 790,938,134 | | | | 666,490,281 | | | | 987,395,129 | | | | 1,205,503,554 | | | | 1,060,760,615 | | | | 673,261,479 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders from (Note 8): | | | | | | | | | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | (73,946,360 | ) | | | — | | | | (41,022,811 | ) | | | (126,706,440 | ) | | | (38,755,055 | ) | | | (64,811,896 | ) |
Distributable earnings — Institutional Shares | | | (79,328,878 | ) | | | — | | | | (88,661,863 | ) | | | (245,475,751 | ) | | | (84,340,786 | ) | | | (138,254,528 | ) |
Distributable earnings — R6 Shares | | | (5,142,028 | ) | | | — | | | | (3,999,572 | ) | | | (10,133,722 | ) | | | (6,775,236 | ) | | | (9,940,890 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets from distributions to shareholders | | | (158,417,266 | ) | | | — | | | | (133,684,246 | ) | | | (382,315,913 | ) | | | (129,871,077 | ) | | | (213,007,314 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 18,118,322 | | | | 39,850,074 | | | | 45,490,315 | | | | 101,360,061 | | | | 43,008,867 | | | | 59,410,546 | |
Proceeds from the sale of shares — Institutional Shares | | | 144,015,329 | | | | 293,424,532 | | | | 375,369,630 | | | | 809,157,921 | | | | 227,658,767 | | | | 400,433,013 | |
Proceeds from the sale of shares — R6 Shares | | | 3,661,164 | | | | 14,142,351 | | | | 17,041,686 | | | | 50,608,437 | | | | 58,181,372 | | | | 39,179,571 | |
Net asset value of shares issued in reinvestment of distributions — Retail Shares | | | 70,866,434 | | | | — | | | | 39,805,050 | | | | 123,111,654 | | | | 37,787,177 | | | | 63,171,722 | |
Net asset value of shares issued in reinvestment of distributions — Institutional Shares | | | 76,786,353 | | | | — | | | | 85,850,571 | | | | 235,524,160 | | | | 81,972,697 | | | | 131,512,581 | |
Net asset value of shares issues in reinvestment of distribution — R6 Shares | | | 5,140,882 | | | | — | | | | 3,998,659 | | | | 10,130,977 | | | | 6,591,551 | | | | 9,940,890 | |
Cost of shares redeemed — Retail Shares | | | (115,472,921 | ) | | | (183,821,498 | ) | | | (176,186,480 | ) | | | (286,604,257 | ) | | | (114,412,369 | ) | | | (196,237,866 | ) |
Cost of shares redeemed — Institutional Shares | | | (620,614,629 | ) | | | (363,251,623 | ) | | | (614,599,486 | ) | | | (654,049,077 | ) | | | (585,820,809 | ) | | | (635,169,274 | ) |
Cost of shares redeemed — R6 Shares | | | (18,276,666 | ) | | | (22,677,575 | ) | | | (24,441,038 | ) | | | (26,066,283 | ) | | | (19,242,599 | ) | | | (49,885,052 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | (435,775,732 | ) | | | (222,333,739 | ) | | | (247,671,093 | ) | | | 363,173,593 | | | | (264,275,346 | ) | | | (177,643,869 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 196,745,136 | | | | 444,156,542 | | | | 606,039,790 | | | | 1,186,361,234 | | | | 666,614,192 | | | | 282,610,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 4,370,387,282 | | | | 3,926,230,740 | | | | 7,444,590,145 | | | | 6,258,228,911 | | | | 4,215,145,544 | | | | 3,932,535,248 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 4,567,132,418 | | | $ | 4,370,387,282 | | | $ | 8,050,629,935 | | | $ | 7,444,590,145 | | | $ | 4,881,759,736 | | | $ | 4,215,145,544 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 187,428 | | | | 445,882 | | | | 483,798 | | | | 1,105,820 | | | | 1,431,972 | | | | 2,195,891 | |
Shares issued in reinvestment of distributions | | | 763,318 | | | | — | | | | 439,398 | | | | 1,390,112 | | | | 1,344,261 | | | | 2,463,796 | |
Shares redeemed | | | (1,205,729 | ) | | | (2,040,562 | ) | | | (1,868,236 | ) | | | (3,147,012 | ) | | | (3,799,001 | ) | | | (7,319,463 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (254,983 | ) | | | (1,594,680 | ) | | | (945,040 | ) | | | (651,080 | ) | | | (1,022,768 | ) | | | (2,659,776 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,420,891 | | | | 3,096,411 | | | | 3,775,499 | | | | 8,421,699 | | | | 7,078,080 | | | | 13,690,326 | |
Shares issued in reinvestment of distributions | | | 779,874 | | | | — | | | | 897,080 | | | | 2,526,145 | | | | 2,699,134 | | | | 4,770,133 | |
Shares redeemed | | | (6,044,606 | ) | | | (3,814,904 | ) | | | (6,153,308 | ) | | | (6,823,837 | ) | | | (17,573,916 | ) | | | (21,850,800 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,843,841 | ) | | | (718,493 | ) | | | (1,480,729 | ) | | | 4,124,007 | | | | (7,796,702 | ) | | | (3,390,341 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 36,170 | | | | 146,661 | | | | 170,641 | | | | 520,741 | | | | 1,844,949 | | | | 1,339,970 | |
Shares issued in reinvestment of distributions | | | 52,229 | | | | — | | | | 41,779 | | | | 108,649 | | | | 217,185 | | | | 360,700 | |
Shares redeemed | | | (179,322 | ) | | | (235,063 | ) | | | (244,168 | ) | | | (271,219 | ) | | | (593,350 | ) | | | (1,699,152 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (90,923 | ) | | | (88,402 | ) | | | (31,748 | ) | | | 358,171 | | | | 1,468,784 | | | | 1,518 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 33 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | | | | | |
| | | Baron Opportunity Fund | | | Baron Fifth Avenue Fund | |
| | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (5,089,680 | ) | | $ | (7,510,621 | ) | | $ | (1,846,222 | ) | | $ | (2,819,229 | ) |
Net realized gain (loss) | | | 52,597,484 | | | | 9,015,148 | | | | 11,808,583 | | | | 19,766,722 | |
Change in net unrealized appreciation (depreciation) | | | 273,861,648 | | | | 182,982,360 | | | | 136,899,004 | | | | 68,310,438 | |
Voluntary payment from Adviser (Note 4) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | | 321,369,452 | | | | 184,486,887 | | | | 146,861,365 | | | | 85,257,931 | |
| | | | | | | | | | | | | | | | |
Distributions to shareholders from (Note 8): | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | — | | | | — | | | | — | | | | — | |
Distributable earnings — Institutional Shares | | | — | | | | — | | | | — | | | | — | |
Distributable earnings — R6 Shares | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Decrease in net assets from distributions to shareholders | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 23,606,235 | | | | 34,372,223 | | | | 15,144,846 | | | | 18,368,310 | |
Proceeds from the sale of shares — Institutional Shares | | | 96,915,555 | | | | 151,526,377 | | | | 38,295,020 | | | | 83,292,712 | |
Proceeds from the sale of shares — R6 Shares | | | 500,752 | | | | 1,139,270 | | | | 1,927 | | | | 153,765 | |
Net asset value of shares issued in reinvestment of distributions — Retail Shares | | | — | | | | — | | | | — | | | | — | |
Net asset value of shares issued in reinvestment of distributions — Institutional Shares | | | — | | | | — | | | | — | | | | — | |
Net asset value of shares issues in reinvestment of distribution — R6 Shares | | | — | | | | — | | | | — | | | | — | |
Cost of shares redeemed — Retail Shares | | | (59,353,373 | ) | | | (83,435,636 | ) | | | (21,412,989 | ) | | | (17,879,353 | ) |
Cost of shares redeemed — Institutional Shares | | | (73,619,087 | ) | | | (134,518,791 | ) | | | (26,096,441 | ) | | | (93,902,515 | ) |
Cost of shares redeemed — R6 Shares | | | (626,340 | ) | | | (1,431,012 | ) | | | (2,025,158 | ) | | | (929,118 | ) |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | (12,576,258 | ) | | | (32,347,569 | ) | | | 3,907,205 | | | | (10,896,199 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 308,793,194 | | | | 152,139,318 | | | | 150,768,570 | | | | 74,361,732 | |
| | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | 999,365,926 | | | | 847,226,608 | | | | 461,431,816 | | | | 387,070,084 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 1,308,159,120 | | | $ | 999,365,926 | | | $ | 612,200,386 | | | $ | 461,431,816 | |
| | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 671,393 | | | | 1,179,931 | | | | 351,571 | | | | 529,126 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (1,685,301 | ) | | | (3,106,653 | ) | | | (542,013 | ) | | | (570,302 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,013,908 | ) | | | (1,926,722 | ) | | | (190,442 | ) | | | (41,176 | ) |
| | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 2,588,038 | | | | 4,946,786 | | | | 869,958 | | | | 2,539,955 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (2,043,067 | ) | | | (4,753,258 | ) | | | (611,932 | ) | | | (3,029,356 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 544,971 | | | | 193,528 | | | | 258,026 | | | | (489,401 | ) |
| | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 12,987 | | | | 39,617 | | | | 44 | | | | 4,591 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (16,641 | ) | | | (49,642 | ) | | | (48,862 | ) | | | (26,052 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (3,654 | ) | | | (10,025 | ) | | | (48,818 | ) | | | (21,461 | ) |
| | | | | | | | | | | | | | | | |
| | |
| 34 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | | | | | |
| | | Baron Discovery Fund | | | Baron Durable Advantage Fund | |
| | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | | | For the Six
Months Ended
March 31,
2024 | | | For the Year
Ended
September 30,
2023 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (4,110,561 | ) | | $ | (8,484,525 | ) | | $ | 297,907 | | | $ | 118,085 | |
Net realized gain (loss) | | | 15,410,163 | | | | (123,872,849 | ) | | | (222,624 | ) | | | 171,587 | |
Change in net unrealized appreciation (depreciation) | | | 211,674,676 | | | | 237,834,363 | | | | 44,116,809 | | | | 15,779,529 | |
Voluntary payment from Adviser (Note 4) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | | 222,974,278 | | | | 105,476,989 | | | | 44,192,092 | | | | 16,069,201 | |
| | | | | | | | | | | | | | | | |
Distributions to shareholders from (Note 8): | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | — | | | | — | | | | (651 | ) | | | — | |
Distributable earnings — Institutional Shares | | | — | | | | — | | | | (118,011 | ) | | | — | |
Distributable earnings — R6 Shares | | | — | | | | — | | | | (5,854 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Decrease in net assets from distributions to shareholders | | | — | | | | — | | | | (124,516 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 11,354,242 | | | | 22,756,802 | | | | 68,147,460 | | | | 10,429,207 | |
Proceeds from the sale of shares — Institutional Shares | | | 188,197,123 | | | | 372,347,004 | | | | 136,077,295 | | | | 48,718,221 | |
Proceeds from the sale of shares — R6 Shares | | | 6,710,021 | | | | 8,945,361 | | | | 1,270,513 | | | | 268,603 | |
Net asset value of shares issued in reinvestment of distributions — Retail Shares | | | — | | | | — | | | | 649 | | | | — | |
Net asset value of shares issued in reinvestment of distributions — Institutional Shares | | | — | | | | — | | | | 118,005 | | | | — | |
Net asset value of shares issues in reinvestment of distribution — R6 Shares | | | — | | | | — | | | | 2,446 | | | | — | |
Cost of shares redeemed — Retail Shares | | | (20,312,508 | ) | | | (50,897,545 | ) | | | (7,039,765 | ) | | | (3,911,919 | ) |
Cost of shares redeemed — Institutional Shares | | | (140,463,783 | ) | | | (318,040,395 | ) | | | (12,856,758 | ) | | | (6,088,641 | ) |
Cost of shares redeemed — R6 Shares | | | (3,807,853 | ) | | | (7,718,677 | ) | | | (22,360 | ) | | | (7,004 | ) |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 41,677,242 | | | | 27,392,550 | | | | 185,697,485 | | | | 49,408,467 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 264,651,520 | | | | 132,869,539 | | | | 229,765,061 | | | | 65,477,668 | |
| | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | 1,276,710,198 | | | | 1,143,840,659 | | | | 100,209,553 | | | | 34,731,885 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 1,541,361,718 | | | $ | 1,276,710,198 | | | $ | 329,974,614 | | | $ | 100,209,553 | |
| | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 429,188 | | | | 946,591 | | | | 3,010,187 | | | | 561,883 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | 31 | | | | — | |
Shares redeemed | | | (780,955 | ) | | | (2,121,746 | ) | | | (315,573 | ) | | | (228,857 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (351,767 | ) | | | (1,175,155 | ) | | | 2,694,645 | | | | 333,026 | |
| | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 6,978,044 | | | | 15,011,069 | | | | 5,966,304 | | | | 2,722,811 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | 5,458 | | | | — | |
Shares redeemed | | | (5,354,953 | ) | | | (12,828,286 | ) | | | (546,665 | ) | | | (350,159 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 1,623,091 | | | | 2,182,783 | | | | 5,425,097 | | | | 2,372,652 | |
| | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 241,820 | | | | 358,747 | | | | 53,610 | | | | 14,112 | |
Shares issued in reinvestment of distributions | | | — | | | | — | | | | 113 | | | | — | |
Shares redeemed | | | (142,833 | ) | | | (307,703 | ) | | | (1,020 | ) | | | (428 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 98,987 | | | | 51,044 | | | | 52,703 | | | | 13,684 | |
| | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 35 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. ORGANIZATION
Baron Investment Funds Trust (the Trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company established as a Massachusetts business trust on February 19, 1987. The Trust currently offers seven series (individually, a Fund and collectively, the Funds): Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund.
Each Fund offers Retail Shares, Institutional Shares, and R6 Shares. Each class of shares differs only in its ongoing fees, expenses, and eligibility requirements. Each class of shares has equal rights to earnings and assets, except that each class bears different expenses for distribution and shareholder servicing. Each Fund’s investment income, realized and unrealized gains or losses on investments and foreign currency, and expenses other than those attributable to a specific class are allocated to each class based on its relative net assets. Each class of shares has exclusive voting rights with respect to matters that affect just that class.
Each Fund is diversified. The investment goals of the Funds are as follows:
Baron Asset Fund seeks capital appreciation through long-term investments primarily in securities of medium-sized companies with undervalued assets or favorable growth prospects.
Baron Growth Fund seeks capital appreciation through long-term investments primarily in securities of small-sized growth companies.
Baron Small Cap Fund seeks capital appreciation through investments primarily in securities of small-sized growth companies.
Baron Opportunity Fund seeks capital appreciation through investments primarily in growth companies that benefit from technology advances.
Baron Fifth Avenue Growth Fund seeks capital appreciation through investments primarily in securities of large-sized growth companies.
Baron Discovery Fund seeks capital appreciation through investments primarily in securities of small-sized growth companies.
Baron Durable Advantage Fund seeks capital appreciation through long-term investments primarily in securities of large-sized companies.
2. SIGNIFICANT ACCOUNTING POLICIES AND INVESTMENT RISKS
The following is a summary of significant accounting policies followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (GAAP). The Trust is an investment company and therefore follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies.
a) Net Asset Value. The Funds’ share prices or net asset values (NAV) are calculated as of the scheduled close of the regular trading session (usually 4 p.m. E.T. or such other time as of which the Funds’ NAVs are calculated (the NAV Calculation Time)) on the New York Stock Exchange (the Exchange) on any day the Exchange is scheduled to be open. The NAV per share of a class is determined by dividing the value of the total assets of the Fund represented by such class, less all liabilities, by the total number of Fund shares of such class outstanding.
b) Security Valuation. Portfolio securities traded on any national stock exchange are valued based on the last sale price on the exchange where such shares are principally traded. For securities traded on NASDAQ, the Funds use the NASDAQ Official Closing Price. If there are no sales on a given day, the value of the security may be the average of the most recent bid and asked quotations on such exchange or the last sale price from a prior day. Where market quotations are not readily available, or, if in BAMCO, Inc.’s (the Adviser) judgment, they do not accurately reflect the fair value of a security, or an event occurs after the market close but before the Funds are priced that materially affects the value of a security, the security will be valued by the Adviser using policies and procedures approved by the Board of Trustees (the Board). The Board has designated the Adviser to perform fair value determinations pursuant to Rule 2a-5 under the 1940 Act. The Adviser has a Fair Valuation Committee (the Committee) comprised of senior management representatives and the Committee reports to the Board every quarter. Accordingly, the Committee may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Adviser’s portfolio management team also will be considered. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
U.S. Government obligations, money market instruments, and other debt instruments held by the Funds with a remaining maturity of 60 days or less are generally valued at amortized cost, which approximates fair value, unless an independent pricing service provides a valuation for such security or in the opinion of the Board or the Committee, the amortized cost method would not represent fair value. Debt instruments having a greater remaining maturity will be valued on the basis of prices obtained from a pricing service approved by the Board or at the mean of the bid and ask prices from the dealer maintaining an active market in that security. The value of the Funds’ investments in convertible bonds/convertible preferred stocks is determined primarily by obtaining valuations from independent pricing services based on readily available bid quotations or, if quotations are not available, by methods which include various considerations such as yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Other inputs used by an independent pricing service to value convertible bonds/convertible preferred stocks generally include underlying stock data, conversion premiums, listed bond and preferred stock prices and other market information which may include benchmark curves, trade execution data, sensitivity analysis, when available, or an estimated value calculated based on the price of the underlying common share on the valuation date adjusted for accrued and unpaid dividends. Open-end investment companies, including securities lending collateral invested in registered investment company money market funds, are valued at their NAV each day.
Non-U.S. equity securities traded on foreign securities exchanges are generally valued using an independent pricing vendor that provides daily fair value adjustment factors based on information such as local closing price, relevant general and sector indexes, currency fluctuations, and depositary receipts, as applicable. Securities valued using such adjustment factors are classified as Level 2 in the fair value hierarchy. The models of the independent pricing vendor generate an adjustment factor for each security,
36
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES AND INVESTMENT RISKS (Continued)
which is applied to the local closing price to adjust it for post-closing market movements up to the time the Funds are valued and translated into U.S. dollars. If the vendor does not provide an adjustment factor for a security, the security is valued based on its most recent local closing price and translated into U. S. dollars. The Adviser may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open. Other mutual funds may adjust the prices of their securities by different amounts.
c) Securities Transactions and Investment Income. Fund securities transactions are accounted for on trade date. Realized gain and loss from securities transactions are recorded on an identified cost basis for financial reporting and federal income tax purposes. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis, which includes the accretion of discounts and amortization of premiums. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Certain dividends from foreign securities will be recorded as soon as the Funds are informed of the dividend if such information is obtained subsequent to the ex-dividend date. Distributions received from certain investments held by the Funds may be comprised of dividends, realized gains and returns of capital. The Funds originally estimate the expected classification of such payments and the amounts may subsequently be reclassified upon receipt of information from the issuer.
d) Expense Allocation. The Funds are charged for those expenses that are directly attributable to each Fund, such as advisory and custodian fees. Expenses of the Trust and Baron Select Funds (collectively, the Fund Complex), not directly chargeable to one or more specific Baron Funds are typically allocated among the funds in the Fund Complex in proportion to their respective net assets. The Funds accrue distribution and service (12b-1) fees to Retail Shares.
e) Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the period. Actual results could differ from those estimates.
f) Foreign Currency Translations. The accounting records of the Funds are maintained in U.S. dollars. Values of assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the price of such currencies at the NAV Calculation Time. Purchases and sales of investments and dividend income are converted at the prevailing rate of exchange on the respective dates of such transactions. Net realized gain (loss) on foreign currency transactions includes gain (loss) arising from the fluctuation in the exchange rates between trade and settlement dates on security transactions and currency gain (loss) between the accrual and payment dates on dividends and foreign withholding taxes. The Funds do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included with the net realized and unrealized gain or loss from investments on the Statements of Operations. The Funds may invest in foreign securities and foreign currency transactions that may involve risks not associated with domestic investments as a result of the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability, among others.
Pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are generally treated as ordinary income for U.S. federal income tax purposes.
g) Securities Lending. The Funds may lend securities to certain brokers under the terms of a master netting agreement. Upon such loans, the Funds receive collateral which is maintained by the custodian. The Funds may pay fees to the custodian for administering the securities lending program. The Funds earn interest on such collateral and earn income in the form of negotiated lenders’ fees, both of which are included in securities lending income in the Statements of Operations. Securities loaned are required to be secured at all times by collateral equal to at least 102% of the market value of the securities loaned. Risks may arise upon entering into securities lending to the extent that the value of the collateral is less than the value of the securities loaned due to the changes in the value of collateral or the loaned securities. The collateral is marked-to-market daily and settled on the next business day. The Funds may receive collateral in the form of cash or other eligible securities, such as a letter of credit issued by a U.S. bank or securities issued or guaranteed by the U.S. government. Securities purchased with cash collateral are subject to the risks inherent in investing in these securities.
There were no securities on loan at March 31, 2024.
h) Repurchase Agreements. The Funds may invest in repurchase agreements, which are short term investments whereby the Funds acquire ownership of a debt security and the seller agrees to repurchase the security at a future date at a specified price. When entering into repurchase agreements, it is the Funds’ policy that their custodian take possession of the underlying collateral securities, the market value of which, at all times, equals at least 102% of the principal amount of the repurchase transaction. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. The information required to be disclosed by FASB Accounting Standards Update No. 2011-11 for the Funds’ investments in repurchase agreements at March 31, 2024, including the fair value of the repurchase agreement and the amount of collateral, can be found in each respective Fund’s Portfolio of Investments.
i) Master Limited Partnerships. The Funds may invest in master limited partnerships (MLPs). MLPs are limited partnerships or limited liability companies, whose partnership units or limited liability interests are listed and traded on a U.S. securities exchange, and are treated as publicly traded partnerships for federal income tax purposes. To qualify to be treated as a partnership for tax purposes, an MLP must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended. These qualifying sources include interest, dividend, real property rent, gain from sale or other disposition of real property and income from activities such as the exploration, development, mining, production, processing, refining, transportation, storage and marketing of mineral or natural resources.
j) Special Purpose Acquisition Company. The Funds may acquire an interest in a special purpose acquisition company (SPAC) in an initial public offering (IPO), via a private placement or a secondary market transaction. A SPAC is typically a publicly traded company that raises investment capital via an IPO for the purpose of acquiring the equity securities of one or more existing companies via merger, combination, acquisition or other similar transactions. To the extent the SPAC is invested in cash or
37
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES AND INVESTMENT RISKS (Continued)
similar securities, this may negatively affect a Fund’s performance if the Fund is invested in the SPAC during such period. There is no guarantee that the SPACs will complete an acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. These transactions will require the approval of the respective shareholders and are subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the SPAC’s acquisition may not close and, to the extent a Fund had committed to participate in a private placement (i.e., PIPE transaction, defined below), the Fund will no longer be obligated to fulfill its commitment.
k) Private Investment in Public Equity. The Funds may acquire equity securities of an issuer that are issued through a private investment in public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A Fund will generally earmark an amount of cash or high quality securities equal to the amount of its commitment to purchase the when-issued securities. PIPE transactions typically involve the purchase of securities directly from a publicly traded company in a private placement transaction, including securities issued by a SPAC, typically at a discount to the market price of the company’s securities. There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of a Fund’s investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restriction can last an uncertain amount of time and may be many months. Until the public registration process is completed, securities acquired via a PIPE are restricted as to resale and a Fund cannot freely trade the securities. Generally, such restrictions cause these securities to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.
Publicly traded securities acquired via a PIPE transaction are typically valued at the market price of an issuer’s common stock and classified as Level 2 in the fair value hierarchy.
l) Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. None of the Funds will be subject to federal or state income taxes to the extent that they qualify as regulated investment companies and substantially all of their income is distributed.
The Funds may be subject to foreign taxes on income and gains on investments that are accrued based upon the Funds’ understanding of the tax rules and regulations that exist in the countries in which the Funds invest. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.
m) Restricted Securities. The Funds may invest in securities that are restricted as to public sale in accordance with the Securities Act of 1933. Such assets are valued by the Adviser pursuant to policies and procedures approved by the Board. Refer to Note 6 for additional information.
n) Distributions to Shareholders. Income and capital gain distributions to shareholders are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for net investment loss, foreign currency gains and losses, non-deductible interest expense, reclassification of distributions, partnership basis adjustments, income from passive foreign investment companies, foreign capital gains tax, late-year loss deferral, post-October loss deferral, and wash sale loss deferral. Income dividends are normally declared and paid annually. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Funds, if not distributed. The Funds intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
o) Commitments and Contingencies. In the normal course of business, the Funds may enter into contracts and agreements that contain a variety of representations and warranties, which provide general indemnification. The maximum exposure to the Funds under these agreements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
p) Cash and Cash Equivalents. The Funds consider all short-term liquid investments with a maturity of three months or less when purchased to be cash equivalents.
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short term securities, for the six months ended March 31, 2024 were as follows:
| | | | | | | | |
| | |
| Fund | | Purchases | | | Sales | |
Baron Asset Fund | | $ | 81,633,512 | | | $ | 671,722,545 | |
Baron Growth Fund | | | 22,164,689 | | | | 397,639,575 | |
Baron Small Cap Fund | | | 301,118,550 | | | | 631,374,120 | |
Baron Opportunity Fund | | | 181,857,303 | | | | 202,666,434 | |
Baron Fifth Avenue Growth Fund | | | 40,478,179 | | | | 37,258,756 | |
Baron Discovery Fund | | | 218,684,147 | | | | 174,365,857 | |
Baron Durable Advantage Fund | | | 178,337,897 | | | | 597,778 | |
38
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a) Investment Advisory Fees. The Adviser, a wholly owned subsidiary of Baron Capital Group, Inc. (BCG), serves as investment adviser to the Funds. As compensation for services rendered, the Adviser receives a fee accrued daily as a percentage of each Fund’s average daily net assets and payable monthly, at an annual rate set forth below.
| | | | |
| |
| Fund | | Annual Rate | |
Baron Asset Fund | | | 1.00 | % |
Baron Growth Fund | | | 1.00 | % |
Baron Small Cap Fund | | | 1.00 | % |
Baron Opportunity Fund | | | 1.00 | % |
Baron Fifth Avenue Growth Fund | | | 0.70 | % |
Baron Discovery Fund | | | 1.00 | % |
Baron Durable Advantage Fund | | | 0.65 | % |
The Adviser has contractually agreed to waive its fee or reimburse Fund expenses to the extent required to limit the net annual operating expense ratio (excluding portfolio transaction costs, interest and dividend expense, acquired fund fees and expenses, fees and expenses related to filing foreign tax reclaims, and extraordinary expenses) pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term as follows:
| | | | | | | | | | | | |
| |
| | | Annual Operating
Expense Ratio Cap | |
| | | |
| Fund | | Retail
Shares | | | Institutional Shares | | | R6
Shares | |
Baron Opportunity Fund | | | 1.50 | % | | | 1.25 | % | | | 1.24 | % |
Baron Fifth Avenue Growth Fund | | | 1.00 | % | | | 0.75 | % | | | 0.75 | % |
Baron Discovery Fund | | | 1.35 | % | | | 1.10 | % | | | 1.09 | % |
Baron Durable Advantage Fund | | | 0.95 | % | | | 0.70 | % | | | 0.70 | % |
During the six months ended March 31, 2024, the Adviser waived its management fees and reimbursed other expenses, if applicable, as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| | | Retail Shares | | | Institutional Shares | | | R6 Shares | |
| | | | | | |
| Fund | | Management
Fees Waived | | | Expenses
Reimbursed | | | Management
Fees Waived | | | Expenses
Reimbursed | | | Management
Fees Waived | | | Expenses
Reimbursed | |
Baron Fifth Avenue Growth Fund | | $ | 20,042 | | | $ | — | | | $ | 28,883 | | | $ | — | | | $ | 2,063 | | | $ | — | |
Baron Durable Advantage Fund | | | 33,849 | | | | — | | | | 82,949 | | | | — | | | | 3,294 | | | | — | |
The aforementioned fee waivers and reimbursements, if applicable, are not subject to recoupment by the Adviser.
b) Distribution Fees. Baron Capital, Inc. (BCI), a wholly owned subsidiary of BCG, is a registered broker-dealer and the distributor of the Funds’ shares. The Funds are authorized to pay BCI a distribution fee payable monthly pursuant to a distribution plan under Rule 12b-1 of the 1940 Act equal to 0.25% per annum of the Retail Shares’ average daily net assets of the respective Funds.
c) Trustee Fees. Certain Trustees of the Trust are officers of the Adviser and received no direct renumeration in such capacity from the Fund Complex. The Fund Complex pays each Independent Trustee (an Independent Trustee is a Trustee who is not an interested person (as defined in the 1940 Act) of the Fund Complex) annual compensation in addition to reimbursement of out-of-pocket expenses in connection with attendance at meetings of the Board. Specifically, each Independent Trustee receives an annual base compensation of $215,000 with the lead Independent Trustee receiving an additional $25,000. An additional $60,000 per annum is paid to each Independent Trustee for attendance at the quarterly meetings of the Board. Each member of the Audit Committee receives an additional $12,500 in annual compensation with the Audit Committee Chairperson receiving an additional $12,500.
d) Custody, Fund Accounting and Administration Fees. The Funds have entered into an agreement with State Street Bank and Trust Company (State Street) to perform custody, accounting and certain administrative services.
e) Cross Trades. The Funds are permitted to purchase securities from, or sell securities to, other Funds within the Trust, the funds in Baron Select Funds, and other entities advised or subadvised by the Adviser, pursuant to “Cross-Trading Procedures” adopted by the Board. These procedures have been designed to ensure that any cross-trade of securities by the respective Baron Fund from or to another fund/other entity that is or could be considered an affiliate of a Fund under certain limited circumstances by virtue of having a common investment adviser, common officers, or common trustees complies with Rule 17a-7 under the 1940 Act. Further, as defined under these procedures, each cross-trade is effected at the current market price and with no commissions. Pursuant to these procedures, for the six months ended March 31, 2024, the Funds engaged in the following cross trades:
| | | | | | | | | | | | |
| | | |
| | | Purchases | | | Sales | | | Net Realized
Gains (Losses) | |
Baron Small Cap Fund | | $ | 1,867,674 | | | $ | — | | | $ | — | |
Baron Discovery Fund | | | — | | | | 1,867,674 | | | | (158,466 | ) |
f) Voluntary Payment. During the year ended September 30, 2023, the Adviser made a voluntary payment to Baron Small Cap Fund in the amount of $573 to compensate the Fund for a loss incurred due to a trading error. The impact of this payment increased the Fund’s total return by less than 0.01%.
39
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)
g) Ownership Concentration. As of March 31, 2024, the officers, Trustees, and portfolio managers owned, directly or indirectly, 11.42% of Baron Fifth Avenue Growth Fund. As a result of their ownership, these investors may be able to materially affect the outcome of matters presented to Baron Fifth Avenue Growth Fund shareholders.
h) Transactions in “Affiliated” Companies1
BARON GROWTH FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Name of Issuer | | Value at
September 30,
2023 | | | Purchase
Cost | | | Sales
Proceeds | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Realized
Gains/
(Losses) | | | Dividend
Income | | | Shares Held at
March 31,
2024 | | | Value at March 31,
2024 | | | % of Net
Assets at
March 31,
2024 | |
“Affiliated” Company
as of March 31, 2024: | |
Choice Hotels
International, Inc. | | $ | 363,242,150 | | | $ | 6,787,395 | | | $ | 3,133,836 | | | $ | 11,874,039 | | | $ | 280,252 | | | $ | 869,688 | | | | 3,000,000 | | | $ | 379,050,000 | | | | 4.71 | % |
Iridium
Communications, Inc. | | | 355,959,250 | | | | — | | | | 15,763,533 | | | | (159,864,757 | ) | | | 12,599,040 | | | | 1,972,223 | | | | 7,375,000 | | | | 192,930,000 | | | | 2.40 | % |
Vail Resorts, Inc. | | | 443,780,000 | | | | — | | | | — | | | | 1,880,000 | | | | — | | | | 12,680,000 | | | | 2,000,000 | | | | 445,660,000 | | | | 5.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,162,981,400 | | | $ | 6,787,395 | | | $ | 18,897,369 | | | $ | (146,110,718 | ) | | $ | 12,879,292 | | | $ | 15,521,911 | | | | | | | $ | 1,017,640,000 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | An “Affiliated” company (affiliated person as defined in the 1940 Act) is a company in which a Fund held 5% or more of the company’s outstanding voting securities at any time during the six months ended March 31, 2024. |
5. LINE OF CREDIT
The Fund Complex (except Baron Partners Fund), participates in a committed line of credit agreement with State Street to be used for temporary purposes, primarily for financing redemptions. Each fund may borrow up to the lesser of $200 million or the maximum amount each fund may borrow under the 1940 Act, the limitations included in each fund’s prospectus, or any limit or restriction under any law or regulation to which each fund is subject or any agreement to which each fund is a party; provided that the aggregate outstanding principal amount of all loans to any of the funds may not exceed $200 million. Interest is charged to each fund, based on its borrowings, at a rate per annum equal to the higher of the Overnight Bank Funding Rate (OBFR) plus 0.10% or the Federal Funds Effective Rate plus 0.10%; plus a margin of 1.00%. An upfront fee of 0.05% is incurred on the commitment amount and a commitment fee of 0.20% per annum is incurred on the unused portion of the line of credit. Both fees are allocated to the participating funds based on their relative net assets.
During the six months ended March 31, 2024, the following Funds had borrowings under the line of credit as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Fund | | Average
Daily Loan
Balance* | | | Maximum
Daily Loan Outstanding | | | Weighted Average Interest Rate | | | Number of Days Borrowing Outstanding | | | Outstanding Balance as of 3/31/2024 | |
Baron Growth Fund | | $ | 52.5 million | | | $ | 103.2 million | | | | 6.54 | % | | | 157 | | | $ | — | |
Baron Fifth Avenue Growth Fund | | $ | 3.5 million | | | $ | 3.6 million | | | | 6.54 | % | | | 5 | | | $ | — | |
| * | For the days borrowings were outstanding. |
The Adviser believes that the fair value of the liabilities under the line of credit agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates over time. A Fund’s outstanding balance under the line of credit agreement, if any, would be categorized as Level 2 in the fair value hierarchy, which is further discussed in Note 7.
6. RESTRICTED SECURITIES
At March 31, 2024, investments in securities included securities that are restricted and/or illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale and are valued pursuant to the policies and procedures for fair value pricing approved by the Board. An illiquid investment is any investment that the Funds reasonably expect cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to the provisions of SEC Rule 22e-4 (the Liquidity Rule) governing classification of portfolio securities. The Funds may receive more or less than this valuation in an actual sale and that difference could be material.
40
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
6. RESTRICTED SECURITIES (Continued)
At March 31, 2024, the Funds held investments in restricted and/or illiquid securities that were valued pursuant to policies and procedures for fair value pricing as follows:
| | | | | | | | |
| |
| | | Baron Asset Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 1/25/2023 | | | $ | 15,746,786 | |
StubHub Holdings, Inc. | | | 12/22/2021 | | | | 47,334,242 | |
| | |
Private Preferred Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 8/4/2020 | | | | 93,409,060 | |
| | | | | | | | |
| | |
Total Restricted Securities | | | | | | $ | 156,490,088 | |
| | | | | | | | |
(Cost $88,500,527)† (3.43% of Net Assets) | | | | | | | | |
| |
| | | Baron Growth Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Farmers Business Network, Inc. | | | 7/31/2020 | | | $ | 785,437 | |
| | |
Private Convertible Preferred Stocks | | | | | | | | |
Northvolt AB | | | 9/21/2020 | | | | 11,993,680 | |
| | | | | | | | |
| | |
Total Restricted Securities | | | | | | $ | 12,779,117 | |
| | | | | | | | |
(Cost $25,674,991)† (0.16% of Net Assets) | | | | | | | | |
| |
| | | Baron Opportunity Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Farmers Business Network, Inc. | | | 7/31/2020 | | | $ | 338,645 | |
GM Cruise Holdings LLC | | | 5/19/2022 | | | | 21,676 | |
Space Exploration Technologies Corp. | | | 3/25/2021 | | | | 13,280,270 | |
X Holdings I, Inc. | | | 5/4/2022 | | | | 1,366,000 | |
| | |
Private Convertible Preferred Stocks | | | | | | | | |
Farmers Business Network, Inc. | | | 7/31/2020 - 9/28/2023 | | | | 2,766,001 | |
| | |
Private Preferred Stocks | | | | | | | | |
GM Cruise Holdings LLC | | | 1/19/2021 | | | | 1,620,423 | |
Space Exploration Technologies Corp. | | | 8/4/2020 | | | | 17,963,430 | |
| | | | | | | | |
| | |
Total Restricted Securities | | | | | | $ | 37,356,445 | |
| | | | | | | | |
(Cost $31,003,892)† (2.86% of Net Assets) | | | | | | | | |
| |
| | | Baron Fifth Avenue Growth Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 3/25/2021-12/3/2021 | | | $ | 5,196,290 | |
| | |
Private Preferred Stocks | | | | | | | | |
GM Cruise Holdings LLC | | | 1/19/2021 | | | | 809,058 | |
| | | | | | | | |
| | |
Total Restricted Securities | | | | | | $ | 6,005,348 | |
| | | | | | | | |
(Cost $6,012,083)† (0.98% of Net Assets) | | | | | | | | |
† See Portfolios of Investments for cost of individual securities. | |
41
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS
Fair value is defined by GAAP as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. GAAP provides a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
| | • | | Level 1 — quoted prices in active markets for identical assets or liabilities; |
| | • | | Level 2 — prices determined using other inputs that are observable either directly or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); |
| | • | | Level 3 — prices determined using unobservable inputs when quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities. For example, non-U.S. securities, with markets that close hours before the Funds value their holdings, may require revised valuations to more accurately reflect their fair value. Since these values obtained from quoted prices in an active market are adjusted, such securities are reflected as Level 2.
The Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Funds primarily employ a market-based approach that may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine its fair value. The Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
The following is a summary of the inputs used as of March 31, 2024 in valuing the Funds’ investments carried at fair value:
| | | | | | | | | | | | | | | | |
| |
| | | Baron Asset Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical Assets (Level 1) | | | Other Observable Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 4,401,736,026 | | | | — | | | | — | | | $ | 4,401,736,026 | |
Private Common Stocks† | | | — | | | | — | | | | 63,081,028 | | | | 63,081,028 | |
Private Preferred Stocks | | | — | | | | — | | | | 93,409,060 | | | | 93,409,060 | |
Short-Term Investments | | | — | | | | 7,841,272 | | | | — | | | | 7,841,272 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 4,401,736,026 | | | $ | 7,841,272 | | | $ | 156,490,088 | | | $ | 4,566,067,386 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Growth Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets for Identical Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 8,031,179,921 | | | $ | — | | | $ | — | | | $ | 8,031,179,921 | |
Private Common Stocks | | | — | | | | — | | | | 785,437 | | | | 785,437 | |
Private Convertible Preferred Stocks | | | — | | | | — | | | | 11,993,680 | | | | 11,993,680 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 8,031,179,921 | | | $ | — | | | $ | 12,779,117 | | | $ | 8,043,959,038 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Small Cap Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 4,808,975,095 | | | $ | — | | | $ | — | | | $ | 4,808,975,095 | |
Short-Term Investments | | | — | | | | 308,630,336 | | | | — | | | | 308,630,336 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 4,808,975,095 | | | $ | 308,630,336 | | | $ | — | | | $ | 5,117,605,431 | |
| | | | | | | | | | | | | | | | |
| † | See Portfolios of Investments for additional detailed categorizations. |
42
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | |
| |
| | | Baron Opportunity Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 1,254,688,974 | | | $ | — | | | $ | — | | | $ | 1,254,688,974 | |
Private Common Stocks† | | | — | | | | — | | | | 15,006,591 | | | | 15,006,591 | |
Private Convertible Preferred Stocks | | | — | | | | — | | | | 2,766,001 | | | | 2,766,001 | |
Private Preferred Stocks† | | | — | | | | — | | | | 19,583,853 | | | | 19,583,853 | |
Short-Term Investments | | | — | | | | 13,197,327 | | | | — | | | | 13,197,327 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 1,254,688,974 | | | $ | 13,197,327 | | | $ | 37,356,445 | | | $ | 1,305,242,746 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Fifth Avenue Growth Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 594,970,276 | | | $ | 9,275,048 | | | $ | — | | | $ | 604,245,324 | |
Private Common Stocks | | | — | | | | — | | | | 5,196,290 | | | | 5,196,290 | |
Private Preferred Stocks | | | — | | | | — | | | | 809,058 | | | | 809,058 | |
Short-Term Investments | | | — | | | | 1,815,543 | | | | — | | | | 1,815,543 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 594,970,276 | | | $ | 11,090,591 | | | $ | 6,005,348 | | | $ | 612,066,215 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Discovery Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 1,491,000,886 | | | $ | — | | | $ | — | | | $ | 1,491,000,886 | |
Short-Term Investments | | | — | | | | 51,733,058 | | | | — | | | | 51,733,058 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 1,491,000,886 | | | $ | 51,733,058 | | | $ | — | | | $ | 1,542,733,944 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Durable Advantage Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets (Level 1) | | | Other
Observable
Inputs (Level 2) | | | Unobservable
Inputs (Level 3) | | | Total | |
Common Stocks† | | $ | 319,227,633 | | | $ | — | | | $ | — | | | $ | 319,227,633 | |
Short-Term Investments | | | — | | | | 11,812,584 | | | | — | | | | 11,812,584 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 319,227,633 | | | $ | 11,812,584 | | | $ | — | | | $ | 331,040,217 | |
| | | | | | | | | | | | | | | | |
| † | See Portfolios of Investments for additional detailed categorizations. |
43
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
The following is a reconciliation of investments in which unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Asset Fund | |
| | | | | | | | | | |
| Investments in Securities | | Balance as of
September 30,
2023 | | | Accrued
Premiums/
Discounts | | | Net Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales/ Distributions | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
March 31,
2024 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
March 31, 2024 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Communication Services | | $ | 37,919,959 | | | $ | — | | | $ | — | | | $ | 9,414,283 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 47,334,242 | | | $ | 9,414,283 | |
Industrials | | | 12,157,493 | | | | — | | | | — | | | | 3,589,293 | | | | — | | | | — | | | | — | | | | — | | | | 15,746,786 | | | | 3,589,293 | |
| | | | | | | | | | |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 72,114,683 | | | | — | | | | — | | | | 21,294,377 | | | | — | | | | — | | | | — | | | | — | | | | 93,409,060 | | | | 21,294,377 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 122,192,135 | | | $ | — | | | $ | — | | | $ | 34,297,953 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 156,490,088 | | | $ | 34,297,953 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Growth Fund | |
| | | | | | | | | | |
| Investments in Securities | | Balance as of
September 30,
2023 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales/ Distributions | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
March 31,
2024 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
March 31, 2024 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Materials | | $ | 785,437 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 785,437 | | | $ | — | |
| | | | | | | | | | |
Private Convertible Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 13,867,853 | | | | — | | | | — | | | | (1,874,173 | ) | | | — | | | | — | | | | — | | | | | | | | 11,993,680 | | | | (1,874,173 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 14,653,290 | | | $ | — | | | $ | — | | | | (1,874,173 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,779,117 | | | $ | (1,874,173 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Opportunity Fund | |
| | | | | | | | | | |
| Investments in Securities | | Balance as of
September 30,
2023 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales/ Distributions | | | Transfers
Into
Level 3 | | | Transfers Out of Level 3 | | | Balance as of
March 31, 2024 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
March 31, 2024 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Communication Services | | $ | 3,707,500 | | | $ | — | | | $ | — | | | $ | (2,341,500 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,366,000 | | | $ | (2,341,500 | ) |
Industrials | | | 10,330,148 | | | | — | | | | — | | | | 2,971,798 | | | | — | | | | — | | | | — | | | | — | | | | 13,301,946 | | | | 2,971,798 | |
Materials | | | 338,645 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 338,645 | | | | — | |
| | | | | | | | | | |
Private Convertible Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Materials | | | 2,766,001 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,766,001 | | | | — | |
| | | | | | | | | | |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 19,936,233 | | | | — | | | | — | | | | (352,380 | ) | | | — | | | | — | | | | — | | | | — | | | | 19,583,853 | | | | (352,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 37,078,527 | | | $ | — | | | $ | — | | | $ | 277,918 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 37,356,445 | | | $ | 277,918 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
44
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Fifth Avenue Growth Fund | |
| | | | | | | | | | |
| Investments in Securities | | Balance as of
September 30,
2023 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain (Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales/
Distributions | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
March 31,
2024 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
March 31, 2024 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | $ | 4,011,857 | | | $ | — | | | $ | — | | | $ | 1,184,433 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 5,196,290 | | | $ | 1,184,433 | |
| | | | | | | | | | |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 3,029,637 | | | | — | | | | — | | | | (2,220,579 | ) | | | — | | | | — | | | | — | | | | — | | | | 809,058 | | | $ | (2,220,579 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,041,494 | | | $ | — | | | $ | — | | | $ | (1,036,146 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 6,005,348 | | | $ | (1,036,146 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unobservable valuation inputs developed by the Adviser for significant (greater than 1% of net assets) Level 3 investments as of March 31, 2024 were as follows:
| | | | | | | | | | | | | | |
|
Baron Asset Fund |
| | | | | | | |
| Sector | | Company | | Fair Value as of
March 31, 2024 | | Valuation Technique | | Unobservable Input | | Weighted Average
used on
March 31, 2024 | | Range used on
March 31, 2024 | | Impact to
Valuation from an
Increase in Input* |
Private Common Stocks: Communication Services | | StubHub Holdings, Inc. | | $47,334,242 | | Combination of
valuation using
multiples, current
value via comparable
companies, option -
pricing, and scenario
analysis methods | | Enterprise Value /
EBITDA Multiple | | 17.9x | | 10.3x –21.5x | | Increase |
| | Change in the
composite
equity index of
comparable
companies | | (0.62)% | | (1.24)% –1.11% | | Increase |
| | Discount for lack of
marketability | | 7.13% | | 4.26% – 7.28% | | Decrease |
| | Estimated volatility
of the returns of
equity1 | | 36.42% | | 26.31% –45.41% | | Decrease |
| | | | | | | Scenario Probabilites:
Scenario A /Scenario B / Scenario C2 | | 95% /4% / 1% | | 1% – 95% | | n/a |
Private Common
Stocks:
Industrials | | Space Exploration
Technologies Corp. | | $15,746,786 | | Observed transaction | | Observed Transaction
Price | | $97.00 | | $97.00 | | Increase |
Private Preferred Stocks:
Industrials | | Space Exploration
Technologies Corp. | | $93,409,060 | | Observed transaction | | Observed Transaction
Price | | $970.00 | | $970.00 | | Increase |
See footnotes on page 46.
45
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | |
|
Baron Opportunity Fund |
| | | | | | | |
| Sector | | Company | | Fair Value as of
March 31, 2024 | | Valuation Technique | | Unobservable Input | | Weighted Average
used on
March 31, 2024 | | Range used on
March 31, 2024 | | Impact to
Valuation from an
Increase in Input* |
Private Common
Stocks: Communication Services | | X Holdings I, Inc. | | $1,366,000 | | Recent valuation for
employee grants | | Enterprise Value Estimate | | $19 billion | | $19 billion | | Increase |
Private Common
Stocks:
Industrials | | Space Exploration
Technologies
Corp. | | $13,280,270 | | Observed transaction | | Observed Transaction
Price | | $97.00 | | $97.00 | | Increase |
Private Preferred
Stocks:
Industrials | | Space Exploration
TechnologiesCorp. | | $17,963,430 | | Observed
transaction | | Observed Transaction
Price | | $970.00 | | $970.00 | | Increase |
Private Common
Stocks:
Industrials | | GM Cruise
Holdings LLC | | $21,676 | | Combination of
observed transaction
price and scenario
analysis methods | | Observed Transaction
Price | | $24.27 | | $24.27 | | Increase |
| | Scenario Probabilities:
Scenario A / Scenario B /
Scenario C3 | | 50% /50% / 0% | | 0% – 50% | | n/a |
Private Preferred
Stocks:
Industrials | | GM Cruise
Holdings LLC | | $1,620,423 | | Combination of
observed transaction
price and scenario
analysis methods | | Observed Transaction
Price | | $24.27 | | $24.27 | | Increase |
| | Scenario Probabilities:
Scenario A / Scenario B /
Scenario C3 | | 50% /50% / 0% | | 0% – 50% | | n/a |
Private Common
Stocks:
Materials | | Farmers Business
Network, Inc. | | $338,645 | | Scenario
analysis | | Public Markets Event
Scenario Probabilities4 | | 9.1% | | 8% – 10% | | n/a |
| | Liquidity Scenario
Probabilities:
Scenario A / Scenario B5 | | 50% | | 50% – 50% | | n/a |
Private
Convertible
Preferred Stocks: Materials | | Farmers Business
Network, Inc. | | $2,766,001 | | Scenario
analysis | | Public Markets Event
Scenario Probabilities4 | | 9.1% | | 8% – 10% | | n/a |
| | Liquidity Scenario
Probabilities:
Scenario A / Scenario B5 | | 50% | | 50% – 50% | | n/a |
| | | | | | | | | | | | | | |
| 1 | The volatility was calculated as a weighted average of the volatilities of the individual comparable companies. Some companies have a higher weight in the calculation than others. |
| 2 | Scenario A represents a Direct Listing/IPO Event, Scenario B represents an Other Sale Event, and Scenario C represents a Liquidation Event. |
| 3 | Scenario A represents a worst case scenario. Scenario B represents a negative scenario that is beter than the worst case. Scenario C represents a positive scenario. |
| 4 | The probabilities are associated with a range of potential IPO valuations. |
| 5 | Scenario A represents an IPO Event, while Scenario B represents a Liquidation/M&A Event. |
| * | Represents the directional change in the fair value of Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end. |
A significant change in the EV/EBITDA multiple ratio may result in a directionally similar significant change in the fair value measurement, while a significant change in the discount for lack of marketability and equity index of comparable companies may not result in a materially higher or lower fair value measurement.
46
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
Federal income tax regulations differ from GAAP. Therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and net realized gain for financial reporting purposes. Net investment income (loss) and net realized and unrealized gain (loss) may differ for financial statement and tax purposes due to differing treatments of net investment loss, foreign currency gains and losses, non-deductible interest expense, reclassification of distributions, partnership basis adjustments, income from passive foreign investment companies, foreign capital gains tax, late year loss deferral, post-October loss deferral, and wash sale loss deferral. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences.
As of March 31, 2024, the Funds’ cost of investments and gross unrealized appreciation (depreciation) for U.S. federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Baron
Asset Fund | | | Baron
Growth Fund | | | Baron
Small
Cap Fund | | | Baron
Opportunity
Fund | |
Cost of investments | | $ | 1,168,328,649 | | | $ | 1,099,231,785 | | | $ | 2,387,839,705 | | | $ | 585,966,380 | |
| | | | | | | | | | | | | | | | |
Gross tax unrealized appreciation | | | 3,400,404,536 | | | | 6,985,510,433 | | | | 2,819,802,621 | | | | 739,454,600 | |
Gross tax unrealized depreciation | | | (2,665,799 | ) | | | (40,783,180 | ) | | | (90,036,895 | ) | | | (20,178,234 | ) |
| | | | | | | | | | | | | | | | |
Net tax unrealized appreciation (depreciation) | | $ | 3,397,738,737 | | | $ | 6,944,727,253 | | | $ | 2,729,765,726 | | | $ | 719,276,366 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | Baron Fifth Avenue
Growth Fund | | | Baron
Discovery
Fund | | | Baron
Durable
Advantage
Fund | |
Cost of investments | | $ | 307,137,035 | | | $ | 1,172,565,393 | | | $ | 271,470,751 | |
| | | | | | | | | | | | |
Gross tax unrealized appreciation | | | 337,811,726 | | | | 440,696,324 | | | | 60,176,751 | |
Gross tax unrealized depreciation | | | (32,882,546 | ) | | | (70,527,773 | ) | | | (607,285 | ) |
| | | | | | | | | | | | |
Net tax unrealized appreciation (depreciation) | | $ | 304,929,180 | | | $ | 370,168,551 | | | $ | 59,569,466 | |
| | | | | | | | | | | | |
At September 30, 2023, the Funds had capital loss carryforwards with no expiration dates, as follows:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Baron
Asset Fund | | | Baron
Growth Fund | | | Baron
Small
Cap Fund | | | Baron
Opportunity
Fund | |
Short Term | | $ | — | | | $ | — | | | $ | — | | | $ | 101,204,471 | |
| | | | | | | | | | | | | | | | |
Long Term | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | Baron
Fifth Avenue
Growth Fund | | | Baron
Discovery
Fund | | | Baron
Durable
Advantage
Fund | |
Short Term | | $ | 20,923,823 | | | $ | 80,337,008 | | | $ | 2,281,054 | |
| | | | | | | | | | | | |
Long Term | | $ | — | | | $ | 123,883,788 | | | $ | 26,766 | |
| | | | | | | | | | | | |
47
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS (Continued)
The estimated tax character of distributions paid during the six months ended March 31, 2024 and year ended September 30, 2023 was as follows:
| | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended
March 31, 2024 | | | Year Ended
September 30, 2023 | |
| | | | |
| Fund | | Ordinary1 | | | Long Term Capital Gain | | | Ordinary1 | | | Long Term Capital Gain | |
Baron Asset Fund | | $ | — | | | $ | 158,417,266 | | | $ | — | | | $ | — | |
Baron Growth Fund | | | — | | | | 133,684,246 | | | | — | | | | 382,315,913 | |
Baron Small Cap Fund | | | — | | | | 129,871,077 | | | | — | | | | 213,007,314 | |
Baron Opportunity Fund | | | — | | | | — | | | | — | | | | — | |
Baron Fifth Avenue Growth Fund | | | — | | | | — | | | | — | | | | — | |
Baron Discovery Fund | | | — | | | | — | | | | — | | | | — | |
Baron Durable Advantage Fund | | | 124,516 | | | | — | | | | — | | | | — | |
| 1 | For tax purposes, short-term capital gains are considered ordinary income distributions. |
The Funds follow the provisions of FASB Codification Section 740 (ASC Section 740) “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return. ASC Section 740 sets forth a threshold for financial statement recognition, measurement and disclosure of tax positions taken or expected to be taken on a tax return. The Funds are required to recognize the tax effects of certain tax positions under a “more likely than not” standard, that based on their technical merits, have more than 50% likelihood of being sustained upon examination. Management has analyzed the tax positions taken on the Funds’ federal income tax returns for all open years (current and prior three years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. At March 31, 2024, the Funds did not have any uncertain tax benefits that require recognition, de-recognition or disclosure. The Funds’ federal, state and local income and federal excise tax returns for which the applicable statutes of limitations have not expired (current and prior three years) are subject to examination by the Internal Revenue Service and state departments of revenue.
9. RECENT REGULATORY UPDATE
In October 2022, the SEC adopted the Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds rule and reform amendments requiring open-end management investment companies, including mutual funds and exchange-traded funds, to transmit concise and visually engaging semi-annual and annual tailored shareholder reports that highlight key information, including fund expenses, performance, and holdings to shareholders. Certain information from the Funds’ current shareholder reports, including the Funds’ portfolios of investments, financial statements, and financial highlights, will move to Form N-CSR. This information will be available online, mailed upon request and filed on a semi-annual basis. The rule and form amendments have a compliance date of July 24, 2024. Accordingly, the rule and form amendments will not impact the Funds until the 2024 annual shareholder reports.
10. SUBSEQUENT EVENTS
Management has evaluated events occurring subsequent to the date of the Statements of Assets and Liabilities and through the date of issuance of the financial statements and has determined that there were no subsequent events that required adjustment to or disclosure in the financial statements.
48
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
FINANCIAL HIGHLIGHTS (Unaudited)
BARON ASSET FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average
Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Total
expenses
(%)
| | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 90.44 | | | | (0.36 | ) | | | 17.18 | | | | 16.82 | | | | 0.00 | | | | (3.41 | ) | | | (3.41 | ) | | | 103.85 | | | | 19.05 | 3 | | | 1.30 | 4 | | | (0.75 | )4 | | | 2,255.2 | | | | 1.84 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 77.43 | | | | (0.72 | ) | | | 13.73 | | | | 13.01 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 90.44 | | | | 16.80 | | | | 1.30 | | | | (0.80 | ) | | | 1,987.1 | | | | 5.48 | |
| | | | | | | | | | | | | |
2022 | | | 120.59 | | | | (0.90 | ) | | | (33.27 | ) | | | (34.17 | ) | | | 0.00 | | | | (8.99 | ) | | | (8.99 | ) | | | 77.43 | | | | (30.79 | ) | | | 1.29 | | | | (0.91 | ) | | | 1,824.8 | | | | 4.58 | |
| | | | | | | | | | | | | |
2021 | | | 99.64 | | | | (1.16 | ) | | | 25.50 | | | | 24.34 | | | | 0.00 | | | | (3.39 | ) | | | (3.39 | ) | | | 120.59 | | | | 24.96 | | | | 1.29 | 5 | | | (1.02 | ) | | | 2,871.7 | | | | 9.54 | |
| | | | | | | | | | | | | |
2020 | | | 82.28 | | | | (0.72 | ) | | | 19.58 | | | | 18.86 | | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 99.64 | | | | 23.22 | | | | 1.31 | | | | (0.82 | ) | | | 2,498.6 | | | | 9.28 | |
| | | | | | | | | | | | | |
2019 | | | 81.43 | | | | (0.56 | ) | | | 6.17 | | | | 5.61 | | | | 0.00 | | | | (4.76 | ) | | | (4.76 | ) | | | 82.28 | | | | 7.82 | | | | 1.30 | | | | (0.73 | ) | | | 2,242.0 | | | | 11.83 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 95.68 | | | | (0.25 | ) | | | 18.21 | | | | 17.96 | | | | 0.00 | | | | (3.41 | ) | | | (3.41 | ) | | | 110.23 | | | | 19.20 | 3 | | | 1.04 | 4 | | | (0.50 | )4 | | | 2,153.0 | | | | 1.84 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 81.71 | | | | (0.52 | ) | | | 14.49 | | | | 13.97 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 95.68 | | | | 17.10 | | | | 1.05 | | | | (0.54 | ) | | | 2,236.6 | | | | 5.48 | |
| | | | | | | | | | | | | |
2022 | | | 126.47 | | | | (0.68 | ) | | | (35.09 | ) | | | (35.77 | ) | | | 0.00 | | | | (8.99 | ) | | | (8.99 | ) | | | 81.71 | | | | (30.61 | ) | | | 1.04 | | | | (0.65 | ) | | | 1,968.9 | | | | 4.58 | |
| | | | | | | | | | | | | |
2021 | | | 104.08 | | | | (0.91 | ) | | | 26.69 | | | | 25.78 | | | | 0.00 | | | | (3.39 | ) | | | (3.39 | ) | | | 126.47 | | | | 25.29 | | | | 1.03 | 5 | | | (0.76 | ) | | | 3,108.2 | | | | 9.54 | |
| | | | | | | | | | | | | |
2020 | | | 85.67 | | | | (0.52 | ) | | | 20.43 | | | | 19.91 | | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 104.08 | | | | 23.53 | | | | 1.05 | | | | (0.57 | ) | | | 2,505.4 | | | | 9.28 | |
| | | | | | | | | | | | | |
2019 | | | 84.36 | | | | (0.38 | ) | | | 6.45 | | | | 6.07 | | | | 0.00 | | | | (4.76 | ) | | | (4.76 | ) | | | 85.67 | | | | 8.11 | | | | 1.05 | | | | (0.48 | ) | | | 1,979.7 | | | | 11.83 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 95.65 | | | | (0.25 | ) | | | 18.20 | | | | 17.95 | | | | 0.00 | | | | (3.41 | ) | | | (3.41 | ) | | | 110.19 | | | | 19.20 | 3 | | | 1.04 | 4 | | | (0.50 | )4 | | | 158.9 | | | | 1.84 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 81.70 | | | | (0.52 | ) | | | 14.47 | | | | 13.95 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 95.65 | | | | 17.07 | | | | 1.05 | | | | (0.55 | ) | | | 146.7 | | | | 5.48 | |
| | | | | | | | | | | | | |
2022 | | | 126.45 | | | | (0.67 | ) | | | (35.09 | ) | | | (35.76 | ) | | | 0.00 | | | | (8.99 | ) | | | (8.99 | ) | | | 81.70 | | | | (30.61 | ) | | | 1.04 | | | | (0.65 | ) | | | 132.5 | | | | 4.58 | |
| | | | | | | | | | | | | |
2021 | | | 104.07 | | | | (0.91 | ) | | | 26.68 | | | | 25.77 | | | | 0.00 | | | | (3.39 | ) | | | (3.39 | ) | | | 126.45 | | | | 25.28 | | | | 1.04 | 5 | | | (0.76 | ) | | | 185.8 | | | | 9.54 | |
| | | | | | | | | | | | | |
2020 | | | 85.65 | | | | (0.52 | ) | | | 20.44 | | | | 19.92 | | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 104.07 | | | | 23.55 | | | | 1.05 | | | | (0.57 | ) | | | 147.3 | | | | 9.28 | |
| | | | | | | | | | | | | |
2019 | | | 84.35 | | | | (0.38 | ) | | | 6.44 | | | | 6.06 | | | | 0.00 | | | | (4.76 | ) | | | (4.76 | ) | | | 85.65 | | | | 8.09 | | | | 1.05 | | | | (0.47 | ) | | | 109.0 | | | | 11.83 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distribution, if any. |
| 5 | Interest expense rounds to less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 49 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON GROWTH FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average
Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Total
expenses
(%)
| | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 90.55 | | | | (0.06 | ) | | | 12.09 | | | | 12.03 | | | | 0.00 | | | | (1.70 | ) | | | (1.70 | ) | | | 100.88 | | | | 13.50 | 3 | | | 1.33 | 4,5 | | | (0.12 | )4 | | | 2,368.7 | | | | 0.29 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 80.38 | | | | (0.22 | ) | | | 15.52 | | | | 15.30 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 90.55 | | | | 19.17 | | | | 1.30 | 6 | | | (0.24 | ) | | | 2,211.7 | | | | 2.11 | |
| | | | | | | | | | | | | |
2022 | | | 117.64 | | | | (0.35 | ) | | | (27.94 | ) | | | (28.29 | ) | | | 0.00 | | | | (8.97 | ) | | | (8.97 | ) | | | 80.38 | | | | (26.31 | ) | | | 1.30 | 6 | | | (0.36 | ) | | | 2,015.6 | | | | 0.44 | |
| | | | | | | | | | | | | |
2021 | | | 90.65 | | | | (0.81 | ) | | | 32.65 | | | | 31.84 | | | | 0.00 | | | | (4.85 | ) | | | (4.85 | ) | | | 117.64 | | | | 36.19 | 8 | | | 1.29 | 7 | | | (0.75 | ) | | | 3,041.4 | | | | 1.37 | |
| | | | | | | | | | | | | |
2020 | | | 78.95 | | | | (0.35 | ) | | | 15.10 | | | | 14.75 | | | | 0.00 | | | | (3.05 | ) | | | (3.05 | ) | | | 90.65 | | | | 19.08 | | | | 1.30 | 7 | | | (0.44 | ) | | | 2,535.3 | | | | 1.63 | �� |
| | | | | | | | | | | | | |
2019 | | | 80.68 | | | | (0.16 | ) | | | 3.56 | | | | 3.40 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 78.95 | | | | 5.09 | | | | 1.29 | 7 | | | (0.21 | ) | | | 2,507.0 | | | | 1.93 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 95.52 | | | | 0.07 | | | | 12.77 | | | | 12.84 | | | | 0.00 | | | | (1.70 | ) | | | (1.70 | ) | | | 106.66 | | | | 13.65 | 3 | | | 1.07 | 4,5 | | | 0.14 | 4 | | | 5,433.2 | | | | 0.29 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 84.34 | | | | 0.01 | | | | 16.30 | | | | 16.31 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 95.52 | | | | 19.48 | | | | 1.05 | 6 | | | 0.01 | | | | 5,007.2 | | | | 2.11 | |
| | | | | | | | | | | | | |
2022 | | | 122.73 | | | | (0.10 | ) | | | (29.32 | ) | | | (29.42 | ) | | | 0.00 | | | | (8.97 | ) | | | (8.97 | ) | | | 84.34 | | | | (26.12 | ) | | | 1.04 | 6 | | | (0.10 | ) | | | 4,073.5 | | | | 0.44 | |
| | | | | | | | | | | | | |
2021 | | | 94.15 | | | | (0.56 | ) | | | 33.99 | | | | 33.43 | | | | 0.00 | | | | (4.85 | ) | | | (4.85 | ) | | | 122.73 | | | | 36.55 | 8 | | | 1.03 | 7 | | | (0.50 | ) | | | 5,934.8 | | | | 1.37 | |
| | | | | | | | | | | | | |
2020 | | | 81.69 | | | | (0.16 | ) | | | 15.67 | | | | 15.51 | | | | 0.00 | | | | (3.05 | ) | | | (3.05 | ) | | | 94.15 | | | | 19.38 | | | | 1.04 | 7 | | | (0.20 | ) | | | 4,608.4 | | | | 1.63 | |
| | | | | | | | | | | | | |
2019 | | | 83.09 | | | | 0.03 | | | | 3.70 | | | | 3.73 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 81.69 | | | | 5.36 | | | | 1.04 | 7 | | | 0.03 | | | | 4,150.9 | | | | 1.93 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 95.53 | | | | 0.07 | | | | 12.77 | | | | 12.84 | | | | 0.00 | | | | (1.70 | ) | | | (1.70 | ) | | | 106.67 | | | | 13.65 | 3 | | | 1.08 | 4,5 | | | 0.13 | 4 | | | 248.7 | | | | 0.29 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 84.35 | | | | 0.01 | | | | 16.30 | | | | 16.31 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 95.53 | | | | 19.48 | | | | 1.05 | 6 | | | 0.01 | | | | 225.7 | | | | 2.11 | |
| | | | | | | | | | | | | |
2022 | | | 122.75 | | | | (0.11 | ) | | | (29.32 | ) | | | (29.43 | ) | | | 0.00 | | | | (8.97 | ) | | | (8.97 | ) | | | 84.35 | | | | (26.13 | ) | | | 1.04 | 6 | | | (0.10 | ) | | | 169.1 | | | | 0.44 | |
| | | | | | | | | | | | | |
2021 | | | 94.16 | | | | (0.56 | ) | | | 34.00 | | | | 33.44 | | | | 0.00 | | | | (4.85 | ) | | | (4.85 | ) | | | 122.75 | | | | 36.56 | 8 | | | 1.03 | 7 | | | (0.50 | ) | | | 225.8 | | | | 1.37 | |
| | | | | | | | | | | | | |
2020 | | | 81.70 | | | | (0.17 | ) | | | 15.68 | | | | 15.51 | | | | 0.00 | | | | (3.05 | ) | | | (3.05 | ) | | | 94.16 | | | | 19.38 | | | | 1.04 | 7 | | | (0.20 | ) | | | 167.8 | | | | 1.63 | |
| | | | | | | | | | | | | |
2019 | | | 83.10 | | | | 0.00 | 9 | | | 3.73 | | | | 3.73 | | | | 0.00 | | | | (5.13 | ) | | | (5.13 | ) | | | 81.70 | | | | 5.36 | | | | 1.04 | 7 | | | 0.00 | 10 | | | 131.6 | | | | 1.93 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distributions, if any. |
| 5 | Includes interest expense of 0.04%. |
| 6 | Includes interest expense of 0.01%. |
| 7 | Includes interest expense of less than 0.01%. |
| 8 | The Adviser made a voluntary payment to the Fund in the amount of $739,525 to compensate the Fund for a loss incurred due to a valuation error. The impact of this payment increased the Fund’s total return by 0.01%. |
| 9 | Less than $0.01 per share. |
| | |
| 50 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON SMALL CAP FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average
Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Total
expenses
(%)
| | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 27.76 | | | | (0.07 | ) | | | 7.04 | | | | 6.97 | | | | 0.00 | | | | (0.92 | ) | | | (0.92 | ) | | | 33.81 | | | | 25.78 | 3 | | | 1.30 | 4 | | | (0.45 | )4 | | | 1,412.2 | | | | 6.95 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 24.98 | | | | (0.15 | ) | | | 4.38 | | | | 4.23 | | | | 0.00 | | | | (1.45 | ) | | | (1.45 | ) | | | 27.76 | | | | 17.42 | 5 | | | 1.31 | | | | (0.56 | ) | | | 1,187.8 | | | | 10.47 | |
| | | | | | | | | | | | | |
2022 | | | 40.67 | | | | (0.23 | ) | | | (10.74 | ) | | | (10.97 | ) | | | 0.00 | | | | (4.72 | ) | | | (4.72 | ) | | | 24.98 | | | | (30.93 | ) | | | 1.30 | | | | (0.72 | ) | | | 1,135.1 | | | | 16.83 | |
| | | | | | | | | | | | | |
2021 | | | 35.06 | | | | (0.16 | ) | | | 9.89 | | | | 9.73 | | | | 0.00 | | | | (4.12 | ) | | | (4.12 | ) | | | 40.67 | | | | 29.77 | | | | 1.29 | | | | (0.40 | ) | | | 1,829.5 | | | | 15.70 | |
| | | | | | | | | | | | | |
2020 | | | 29.44 | | | | (0.29 | ) | | | 8.73 | | | | 8.44 | | | | 0.00 | | | | (2.82 | ) | | | (2.82 | ) | | | 35.06 | | | | 30.60 | | | | 1.31 | | | | (0.98 | ) | | | 1,511.3 | | | | 16.93 | |
| | | | | | | | | | | | | |
2019 | | | 33.68 | | | | (0.27 | ) | | | (1.36 | ) | | | (1.63 | ) | | | 0.00 | | | | (2.61 | ) | | | (2.61 | ) | | | 29.44 | | | | (4.17 | ) | | | 1.31 | | | | (0.95 | ) | | | 1,451.9 | | | | 13.44 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 29.90 | | | | (0.03 | ) | | | 7.61 | | | | 7.58 | | | | 0.00 | | | | (0.92 | ) | | | (0.92 | ) | | | 36.56 | | | | 25.94 | 3 | | | 1.04 | 4 | | | (0.20 | )4 | | | 3,163.8 | | | | 6.95 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 26.74 | | | | (0.09 | ) | | | 4.70 | | | | 4.61 | | | | 0.00 | | | | (1.45 | ) | | | (1.45 | ) | | | 29.90 | | | | 17.71 | 5 | | | 1.05 | | | | (0.31 | ) | | | 2,821.0 | | | | 10.47 | |
| | | | | | | | | | | | | |
2022 | | | 43.12 | | | | (0.15 | ) | | | (11.51 | ) | | | (11.66 | ) | | | 0.00 | | | | (4.72 | ) | | | (4.72 | ) | | | 26.74 | | | | (30.76 | ) | | | 1.04 | | | | (0.44 | ) | | | 2,613.0 | | | | 16.83 | |
| | | | | | | | | | | | | |
2021 | | | 36.86 | | | | (0.06 | ) | | | 10.44 | | | | 10.38 | | | | 0.00 | | | | (4.12 | ) | | | (4.12 | ) | | | 43.12 | | | | 30.11 | | | | 1.03 | | | | (0.15 | ) | | | 3,214.2 | | | | 15.70 | |
| | | | | | | | | | | | | |
2020 | | | 30.74 | | | | (0.23 | ) | | | 9.17 | | | | 8.94 | | | | 0.00 | | | | (2.82 | ) | | | (2.82 | ) | | | 36.86 | | | | 30.96 | | | | 1.05 | | | | (0.74 | ) | | | 2,724.6 | | | | 16.93 | |
| | | | | | | | | | | | | |
2019 | | | 34.95 | | | | (0.21 | ) | | | (1.39 | ) | | | (1.60 | ) | | | 0.00 | | | | (2.61 | ) | | | (2.61 | ) | | | 30.74 | | | | (3.91 | ) | | | 1.05 | | | | (0.69 | ) | | | 2,267.3 | | | | 13.44 | |
|
R6 SHARES | |
|
Six Months Ended March 31. | |
| | | | | | | | | | | | | |
2024 | | | 29.89 | | | | (0.03 | ) | | | 7.60 | | | | 7.57 | | | | 0.00 | | | | (0.92 | ) | | | (0.92 | ) | | | 36.54 | | | | 25.95 | 3 | | | 1.05 | 4 | | | (0.19 | )4 | | | 305.8 | | | | 6.95 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 26.73 | | | | (0.09 | ) | | | 4.70 | | | | 4.61 | | | | 0.00 | | | | (1.45 | ) | | | (1.45 | ) | | | 29.89 | | | | 17.71 | 5 | | | 1.06 | | | | (0.31 | ) | | | 206.3 | | | | 10.47 | |
| | | | | | | | | | | | | |
2022 | | | 43.10 | | | | (0.14 | ) | | | (11.51 | ) | | | (11.65 | ) | | | 0.00 | | | | (4.72 | ) | | | (4.72 | ) | | | 26.73 | | | | (30.75 | ) | | | 1.04 | | | | (0.41 | ) | | | 184.4 | | | | 16.83 | |
| | | | | | | | | | | | | |
2021 | | | 36.85 | | | | (0.06 | ) | | | 10.43 | | | | 10.37 | | | | 0.00 | | | | (4.12 | ) | | | (4.12 | ) | | | 43.10 | | | | 30.09 | | | | 1.04 | | | | (0.16 | ) | | | 272.8 | | | | 15.70 | |
| | | | | | | | | | | | | |
2020 | | | 30.73 | | | | (0.23 | ) | | | 9.17 | | | | 8.94 | | | | 0.00 | | | | (2.82 | ) | | | (2.82 | ) | | | 36.85 | | | | 30.97 | | | | 1.05 | | | | (0.74 | ) | | | 218.5 | | | | 16.93 | |
| | | | | | | | | | | | | |
2019 | | | 34.94 | | | | (0.21 | ) | | | (1.39 | ) | | | (1.60 | ) | | | 0.00 | | | | (2.61 | ) | | | (2.61 | ) | | | 30.73 | | | | (3.91 | ) | | | 1.05 | | | | (0.70 | ) | | | 161.9 | | | | 13.44 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distributions, if any. |
| 5 | The Adviser made a voluntary payment to the Fund in the amount of $573 to compensate the Fund for a loss incurred due to a trading error. The impact of this payment increased the Fund’s total return by less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 51 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON OPPORTUNITY FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average
Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Total
expenses
(%)
| | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 30.67 | | | | (0.18 | ) | | | 10.17 | | | | 9.99 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 40.66 | | | | 32.57 | 3 | | | 1.31 | 4 | | | (1.03 | )4 | | | 618.4 | | | | 16.28 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 24.72 | | | | (0.27 | ) | | | 6.22 | | | | 5.95 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 30.67 | | | | 24.07 | | | | 1.32 | 5 | | | (0.96 | ) | | | 497.4 | | | | 23.29 | |
| | | | | | | | | | | | | |
2022 | | | 43.49 | | | | (0.39 | ) | | | (14.78 | ) | | | (15.17 | ) | | | 0.00 | | | | (3.60 | ) | | | (3.60 | ) | | | 24.72 | | | | (38.38 | ) | | | 1.31 | 5 | | | (1.15 | ) | | | 448.5 | | | | 30.75 | |
| | | | | | | | | | | | | |
2021 | | | 35.11 | | | | (0.49 | ) | | | 11.65 | | | | 11.16 | | | | 0.00 | | | | (2.78 | ) | | | (2.78 | ) | | | 43.49 | | | | 33.58 | | | | 1.31 | 5 | | | (1.19 | ) | | | 866.5 | | | | 38.74 | |
| | | | | | | | | | | | | |
2020 | | | 21.53 | | | | (0.30 | ) | | | 15.56 | | | | 15.26 | | | | 0.00 | | | | (1.68 | ) | | | (1.68 | ) | | | 35.11 | | | | 75.25 | | | | 1.34 | 5 | | | (1.14 | ) | | | 644.9 | | | | 42.52 | |
| | | | | | | | | | | | | |
2019 | | | 22.02 | | | | (0.22 | ) | | | 0.66 | | | | 0.44 | | | | 0.00 | | | | (0.93 | ) | | | (0.93 | ) | | | 21.53 | | | | 2.51 | | | | 1.34 | 5 | | | (1.07 | ) | | | 302.6 | | | | 37.10 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 32.64 | | | | (0.15 | ) | | | 10.84 | | | | 10.69 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 43.33 | | | | 32.75 | 3 | | | 1.05 | 4 | | | (0.77 | )4 | | | 651.8 | | | | 16.28 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 26.24 | | | | (0.21 | ) | | | 6.61 | | | | 6.40 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 32.64 | | | | 24.39 | | | | 1.06 | 5 | | | (0.70 | ) | | | 473.2 | | | | 23.29 | |
| | | | | | | | | | | | | |
2022 | | | 45.85 | | | | (0.32 | ) | | | (15.69 | ) | | | (16.01 | ) | | | 0.00 | | | | (3.60 | ) | | | (3.60 | ) | | | 26.24 | | | | (38.23 | ) | | | 1.05 | 5 | | | (0.90 | ) | | | 375.3 | | | | 30.75 | |
| | | | | | | | | | | | | |
2021 | | | 36.79 | | | | (0.41 | ) | | | 12.25 | | | | 11.84 | | | | 0.00 | | | | (2.78 | ) | | | (2.78 | ) | | | 45.85 | | | | 33.91 | | | | 1.05 | 5 | | | (0.93 | ) | | | 711.4 | | | | 38.74 | |
| | | | | | | | | | | | | |
2020 | | | 22.42 | | | | (0.25 | ) | | | 16.30 | | | | 16.05 | | | | 0.00 | | | | (1.68 | ) | | | (1.68 | ) | | | 36.79 | | | | 75.82 | | | | 1.08 | 5 | | | (0.88 | ) | | | 409.5 | | | | 42.52 | |
| | | | | | | | | | | | | |
2019 | | | 22.83 | | | | (0.18 | ) | | | 0.70 | | | | 0.52 | | | | 0.00 | | | | (0.93 | ) | | | (0.93 | ) | | | 22.42 | | | | 2.78 | | | | 1.09 | 5 | | | (0.82 | ) | | | 94.4 | | | | 37.10 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | |
2024 | | | 32.67 | | | | (0.15 | ) | | | 10.85 | | | | 10.70 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 43.37 | | | | 32.75 | 3 | | | 1.05 | 4 | | | (0.77 | )4 | | | 38.0 | | | | 16.28 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | |
2023 | | | 26.27 | | | | (0.21 | ) | | | 6.61 | | | | 6.40 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 32.67 | | | | 24.36 | | | | 1.07 | 5 | | | (0.70 | ) | | | 28.8 | | | | 23.29 | |
| | | | | | | | | | | | | |
2022 | | | 45.90 | | | | (0.32 | ) | | | (15.71 | ) | | | (16.03 | ) | | | 0.00 | | | | (3.60 | ) | | | (3.60 | ) | | | 26.27 | | | | (38.23 | ) | | | 1.05 | 5 | | | (0.89 | ) | | | 23.4 | | | | 30.75 | |
| | | | | | | | | | | | | |
2021 | | | 36.82 | | | | (0.41 | ) | | | 12.27 | | | | 11.86 | | | | 0.00 | | | | (2.78 | ) | | | (2.78 | ) | | | 45.90 | | | | 33.94 | | | | 1.05 | 5 | | | (0.93 | ) | | | 36.1 | | | | 38.74 | |
| | | | | | | | | | | | | |
2020 | | | 22.45 | | | | (0.24 | ) | | | 16.29 | | | | 16.05 | | | | 0.00 | | | | (1.68 | ) | | | (1.68 | ) | | | 36.82 | | | | 75.71 | | | | 1.08 | 5 | | | (0.87 | ) | | | 25.7 | | | | 42.52 | |
| | | | | | | | | | | | | |
2019 | | | 22.86 | | | | (0.18 | ) | | | 0.70 | | | | 0.52 | | | | 0.00 | | | | (0.93 | ) | | | (0.93 | ) | | | 22.45 | | | | 2.78 | | | | 1.08 | 5 | | | (0.81 | ) | | | 14.5 | | | | 37.10 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distributions, if any. |
| 5 | Includes interest expense of less than 0.01%. |
| | |
| 52 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON FIFTH AVENUE GROWTH FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Gross
expenses
(%)
| | | Net
expenses
(%) | | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 35.68 | | | | (0.18 | ) | | | 11.70 | | | | 11.52 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 47.20 | | | | 32.29 | 3,4 | | | 1.04 | 5,6 | | | 1.00 | 5,6 | | | (0.89 | )5 | | | 127.3 | | | | 7.10 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 28.73 | | | | (0.28 | ) | | | 7.23 | | | | 6.95 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 35.68 | | | | 24.19 | 4 | | | 1.06 | 7 | | | 1.01 | 7 | | | (0.88 | ) | | | 103.0 | | | | 13.38 | |
| | | | | | | | | | | | | | |
2022 | | | 55.33 | | | | (0.39 | ) | | | (24.49 | ) | | | (24.88 | ) | | | 0.00 | | | | (1.72 | ) | | | (1.72 | ) | | | 28.73 | | | | (46.49 | )4,8 | | | 1.03 | 6 | | | 1.00 | 6 | | | (0.92 | ) | | | 84.2 | | | | 37.41 | |
| | | | | | | | | | | | | | |
2021 | | | 46.62 | | | | (0.46 | ) | | | 9.35 | | | | 8.89 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 55.33 | | | | 19.13 | 4 | | | 1.02 | | | | 1.00 | | | | (0.88 | ) | | | 187.8 | | | | 15.87 | |
| | | | | | | | | | | | | | |
2020 | | | 32.10 | | | | (0.26 | ) | | | 15.77 | | | | 15.51 | | | | 0.00 | | | | (0.99 | ) | | | (0.99 | ) | | | 46.62 | | | | 49.56 | 4 | | | 1.05 | | | | 1.00 | | | | (0.70 | ) | | | 176.9 | | | | 11.57 | |
| | | | | | | | | | | | | | |
2019 | | | 31.02 | | | | 0.07 | | | | 1.01 | | | | 1.08 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 32.10 | | | | 3.48 | 4 | | | 1.06 | | | | 1.00 | | | | 0.23 | | | | 115.5 | | | | 21.24 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 36.86 | | | | (0.14 | ) | | | 12.10 | | | | 11.96 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 48.82 | | | | 32.45 | 3,4 | | | 0.77 | 5,6 | | | 0.75 | 5,6 | | | (0.64 | )5 | | | 453.6 | | | | 7.10 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 29.60 | | | | (0.21 | ) | | | 7.47 | | | | 7.26 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 36.86 | | | | 24.53 | 4 | | | 0.78 | 7 | | | 0.76 | 7 | | | (0.63 | ) | | | 332.9 | | | | 13.38 | |
| | | | | | | | | | | | | | |
2022 | | | 56.82 | | | | (0.29 | ) | | | (25.21 | ) | | | (25.50 | ) | | | 0.00 | | | | (1.72 | ) | | | (1.72 | ) | | | 29.60 | | | | (46.35 | )4,8 | | | 0.76 | 6 | | | 0.75 | 6 | | | (0.68 | ) | | | 281.8 | | | | 37.41 | |
| | | | | | | | | | | | | | |
2021 | | | 47.75 | | | | (0.34 | ) | | | 9.59 | | | | 9.25 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 56.82 | | | | 19.44 | 4 | | | 0.75 | | | | 0.75 | | | | (0.63 | ) | | | 609.8 | | | | 15.87 | |
| | | | | | | | | | | | | | |
2020 | | | 32.80 | | | | (0.17 | ) | | | 16.15 | | | | 15.98 | | | | (0.04 | ) | | | (0.99 | ) | | | (1.03 | ) | | | 47.75 | | | | 49.93 | 4 | | | 0.78 | | | | 0.75 | | | | (0.45 | ) | | | 350.5 | | | | 11.57 | |
| | | | | | | | | | | | | | |
2019 | | | 31.62 | | | | 0.17 | | | | 1.01 | | | | 1.18 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 32.80 | | | | 3.73 | 4 | | | 0.80 | | | | 0.75 | | | | 0.56 | | | | 170.4 | | | | 21.24 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 36.86 | | | | (0.14 | ) | | | 12.09 | | | | 11.95 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 48.81 | | | | 32.42 | 3,4 | | | 0.77 | 5,6 | | | 0.75 | 5,6 | | | (0.64 | )5 | | | 31.3 | | | | 7.10 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 29.61 | | | | (0.21 | ) | | | 7.46 | | | | 7.25 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 36.86 | | | | 24.49 | 4 | | | 0.78 | 7 | | | 0.76 | 7 | | | (0.63 | ) | | | 25.5 | | | | 13.38 | |
| | | | | | | | | | | | | | |
2022 | | | 56.84 | | | | (0.29 | ) | | | (25.22 | ) | | | (25.51 | ) | | | 0.00 | | | | (1.72 | ) | | | (1.72 | ) | | | 29.61 | | | | (46.36 | )4,8 | | | 0.76 | 6 | | | 0.75 | 6 | | | (0.68 | ) | | | 21.1 | | | | 37.41 | |
| | | | | | | | | | | | | | |
2021 | | | 47.76 | | | | (0.34 | ) | | | 9.60 | | | | 9.26 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 56.84 | | | | 19.45 | 4 | | | 0.75 | | | | 0.75 | | | | (0.63 | ) | | | 39.6 | | | | 15.87 | |
| | | | | | | | | | | | | | |
2020 | | | 32.81 | | | | (0.17 | ) | | | 16.15 | | | | 15.98 | | | | (0.04 | ) | | | (0.99 | ) | | | (1.03 | ) | | | 47.76 | | | | 49.92 | 4 | | | 0.78 | | | | 0.75 | | | | (0.45 | ) | | | 33.1 | | | | 11.57 | |
| | | | | | | | | | | | | | |
2019 | | | 31.63 | | | | 0.17 | | | | 1.01 | | | | 1.18 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 32.81 | | | | 3.73 | 4 | | | 0.79 | | | | 0.75 | | | | 0.54 | | | | 22.5 | | | | 21.24 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distributions, if any. |
| 4 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | Includes interest expense of less than 0.01%. |
| 7 | Includes interest expense of 0.01%. |
| 8 | The Adviser made a voluntary payment to the Fund in the amount of $2,806 to compensate the Fund for a loss incurred due to a valuation error. The impact of this payment increased the Fund’s total return by less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 53 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON DISCOVERY FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Gross
expenses
(%)
| | | Net
expenses
(%) | | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 24.28 | | | | (0.11 | ) | | | 4.34 | | | | 4.23 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 28.51 | | | | 17.42 | 3 | | | 1.32 | 4 | | | 1.32 | 4 | | | (0.84 | )4 | | | 144.5 | | | | 13.34 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 22.27 | | | | (0.22 | ) | | | 2.23 | | | | 2.01 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 24.28 | | | | 9.03 | | | | 1.33 | | | | 1.33 | | | | (0.90 | ) | | | 131.6 | | | | 34.45 | |
| | | | | | | | | | | | | | |
2022 | | | 36.93 | | | | (0.32 | ) | | | (13.05 | ) | | | (13.37 | ) | | | 0.00 | | | | (1.29 | ) | | | (1.29 | ) | | | 22.27 | | | | (37.47 | ) | | | 1.32 | | | | 1.32 | | | | (1.11 | ) | | | 146.9 | | | | 40.64 | |
| | | | | | | | | | | | | | |
2021 | | | 28.17 | | | | (0.43 | ) | | | 10.25 | | | | 9.82 | | | | 0.00 | | | | (1.06 | ) | | | (1.06 | ) | | | 36.93 | | | | 35.61 | | | | 1.31 | | | | 1.31 | | | | (1.20 | ) | | | 270.3 | | | | 36.52 | |
| | | | | | | | | | | | | | |
2020 | | | 19.41 | | | | (0.24 | ) | | | 9.03 | | | | 8.79 | | | | 0.00 | | | | (0.03 | ) | | | (0.03 | ) | | | 28.17 | | | | 45.33 | | | | 1.35 | | | | 1.35 | | | | (1.09 | ) | | | 165.2 | | | | 43.36 | |
| | | | | | | | | | | | | | |
2019 | | | 23.77 | | | | (0.22 | ) | | | (2.64 | ) | | | (2.86 | ) | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 19.41 | | | | (11.93 | )5 | | | 1.36 | | | | 1.35 | | | | (1.10 | ) | | | 122.7 | | | | 55.94 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 24.91 | | | | (0.08 | ) | | | 4.46 | | | | 4.38 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 29.29 | | | | 17.58 | 3 | | | 1.05 | 4 | | | 1.05 | 4 | | | (0.57 | )4 | | | 1,339.4 | | | | 13.34 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 22.80 | | | | (0.16 | ) | | | 2.27 | | | | 2.11 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 24.91 | | | | 9.25 | | | | 1.06 | | | | 1.06 | | | | (0.64 | ) | | | 1,098.7 | | | | 34.45 | |
| | | | | | | | | | | | | | |
2022 | | | 37.68 | | | | (0.25 | ) | | | (13.34 | ) | | | (13.59 | ) | | | 0.00 | | | | (1.29 | ) | | | (1.29 | ) | | | 22.80 | | | | (37.31 | ) | | | 1.06 | | | | 1.06 | | | | (0.84 | ) | | | 955.6 | | | | 40.64 | |
| | | | | | | | | | | | | | |
2021 | | | 28.65 | | | | (0.35 | ) | | | 10.44 | | | | 10.09 | | | | 0.00 | | | | (1.06 | ) | | | (1.06 | ) | | | 37.68 | | | | 35.97 | | | | 1.05 | | | | 1.05 | | | | (0.94 | ) | | | 1,721.2 | | | | 36.52 | |
| | | | | | | | | | | | | | |
2020 | | | 19.68 | | | | (0.19 | ) | | | 9.19 | | | | 9.00 | | | | 0.00 | | | | (0.03 | ) | | | (0.03 | ) | | | 28.65 | | | | 45.77 | | | | 1.08 | | | | 1.08 | | | | (0.82 | ) | | | 759.2 | | | | 43.36 | |
| | | | | | | | | | | | | | |
2019 | | | 24.03 | | | | (0.18 | ) | | | (2.67 | ) | | | (2.85 | ) | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 19.68 | | | | (11.75 | ) | | | 1.10 | | | | 1.10 | | | | (0.88 | ) | | | 409.4 | | | | 55.94 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 24.92 | | | | (0.08 | ) | | | 4.45 | | | | 4.37 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 29.29 | | | | 17.54 | 3 | | | 1.06 | 4 | | | 1.06 | 4 | | | (0.57 | )4 | | | 57.5 | | | | 13.34 | 3 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 22.80 | | | | (0.16 | ) | | | 2.28 | | | | 2.12 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 24.92 | | | | 9.30 | | | | 1.06 | | | | 1.06 | | | | (0.64 | ) | | | 46.4 | | | | 34.45 | |
| | | | | | | | | | | | | | |
2022 | | | 37.68 | | | | (0.24 | ) | | | (13.35 | ) | | | (13.59 | ) | | | 0.00 | | | | (1.29 | ) | | | (1.29 | ) | | | 22.80 | | | | (37.30 | ) | | | 1.06 | | | | 1.06 | | | | (0.85 | ) | | | 41.3 | | | | 40.64 | |
| | | | | | | | | | | | | | |
2021 | | | 28.65 | | | | (0.35 | ) | | | 10.44 | | | | 10.09 | | | | 0.00 | | | | (1.06 | ) | | | (1.06 | ) | | | 37.68 | | | | 35.97 | | | | 1.05 | | | | 1.05 | | | | (0.94 | ) | | | 38.1 | | | | 36.52 | |
| | | | | | | | | | | | | | |
2020 | | | 19.68 | | | | (0.19 | ) | | | 9.19 | | | | 9.00 | | | | 0.00 | | | | (0.03 | ) | | | (0.03 | ) | | | 28.65 | | | | 45.77 | | | | 1.08 | | | | 1.08 | | | | (0.83 | ) | | | 15.3 | | | | 43.36 | |
| | | | | | | | | | | | | | |
2019 | | | 24.03 | | | | (0.18 | ) | | | (2.67 | ) | | | (2.85 | ) | | | 0.00 | | | | (1.50 | ) | | | (1.50 | ) | | | 19.68 | | | | (11.75 | ) | | | 1.09 | | | | 1.09 | | | | (0.88 | ) | | | 6.8 | | | | 55.94 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect investment of all dividends and distributions, if any. |
| 5 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| | |
| 54 | | See Notes to Financial Statements. |
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON DURABLE ADVANTAGE FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental Data: | |
| | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($)1 | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gains
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%)2 | | | Gross
expenses
(%)
| | | Net
expenses
(%) | | | Net
investment
income
(loss) (%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 19.55 | | | | 0.01 | | | | 5.11 | | | | 5.12 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 24.67 | | | | 26.19 | 3,4 | | | 1.10 | 5 | | | 0.95 | 5 | | | 0.11 | 5 | | | 87.5 | | | | 0.30 | 4 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 14.66 | | | | (0.00 | )6 | | | 4.89 | | | | 4.89 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.55 | | | | 33.36 | 3 | | | 1.40 | | | | 0.95 | | | | (0.02 | ) | | | 16.6 | | | | 1.93 | |
| | | | | | | | | | | | | | |
2022 | | | 18.47 | | | | (0.04 | ) | | | (3.71 | ) | | | (3.75 | ) | | | 0.00 | | | | (0.06 | ) | | | (0.06 | ) | | | 14.66 | | | | (20.39 | )3 | | | 1.49 | 7 | | | 0.95 | | | | (0.23 | ) | | | 7.6 | | | | 42.09 | |
| | | | | | | | | | | | | | |
2021 | | | 14.47 | | | | (0.05 | ) | | | 4.06 | | | | 4.01 | | | | (0.01 | ) | | | 0.00 | | | | (0.01 | ) | | | 18.47 | | | | 27.70 | 3 | | | 1.91 | | | | 0.95 | | | | (0.29 | ) | | | 9.8 | | | | 10.58 | |
| | | | | | | | | | | | | | |
2020 | | | 11.77 | | | | (0.00 | )6 | | | 2.72 | | | | 2.72 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 14.47 | | | | 23.10 | 3 | | | 2.80 | | | | 0.95 | | | | (0.01 | ) | | | 4.0 | | | | 16.55 | |
| | | | | | | | | | | | | | |
2019 | | | 10.74 | | | | 0.03 | | | | 1.03 | | | | 1.06 | | | | (0.03 | ) | | | 0.00 | | | | (0.03 | ) | | | 11.77 | | | | 9.97 | 3 | | | 6.22 | | | | 0.95 | | | | 0.25 | | | | 1.9 | | | | 13.23 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 19.82 | | | | 0.04 | | | | 5.17 | | | | 5.21 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 25.01 | | | | 26.32 | 3,4 | | | 0.81 | 5 | | | 0.70 | 5 | | | 0.35 | 5 | | | 235.0 | | | | 0.30 | 4 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 14.82 | | | | 0.04 | | | | 4.96 | | | | 5.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.82 | | | | 33.74 | 3 | | | 1.00 | | | | 0.70 | | | | 0.22 | | | | 78.7 | | | | 1.93 | |
| | | | | | | | | | | | | | |
2022 | | | 18.63 | | | | 0.01 | | | | (3.76 | ) | | | (3.75 | ) | | | 0.00 | | | | (0.06 | ) | | | (0.06 | ) | | | 14.82 | | | | (20.21 | )3 | | | 1.10 | 7 | | | 0.70 | | | | 0.03 | | | | 23.6 | | | | 42.09 | |
| | | | | | | | | | | | | | |
2021 | | | 14.56 | | | | (0.01 | ) | | | 4.09 | | | | 4.08 | | | | (0.01 | ) | | | 0.00 | | | | (0.01 | ) | | | 18.63 | | | | 28.01 | 3 | | | 1.48 | | | | 0.70 | | | | (0.05 | ) | | | 27.1 | | | | 10.58 | |
| | | | | | | | | | | | | | |
2020 | | | 11.82 | | | | 0.03 | | | | 2.73 | | | | 2.76 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 14.56 | | | | 23.34 | 3 | | | 2.40 | | | | 0.70 | | | | 0.22 | | | | 8.0 | | | | 16.55 | |
| | | | | | | | | | | | | | |
2019 | | | 10.76 | | | | 0.06 | | | | 1.03 | | | | 1.09 | | | | (0.03 | ) | | | 0.00 | | | | (0.03 | ) | | | 11.82 | | | | 10.23 | 3 | | | 4.91 | | | | 0.70 | | | | 0.52 | | | | 4.7 | | | | 13.23 | |
|
R6 SHARES | |
|
Six Months Ended March 31, | |
| | | | | | | | | | | | | | |
2024 | | | 19.82 | | | | 0.04 | | | | 5.18 | | | | 5.22 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 25.02 | | | | 26.37 | 3.4 | | | 0.81 | 5 | | | 0.70 | 5 | | | 0.35 | 5 | | | 7.5 | | | | 0.30 | 4 |
|
Year Ended September 30, | |
| | | | | | | | | | | | | | |
2023 | | | 14.82 | | | | 0.04 | | | | 4.96 | | | | 5.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.82 | | | | 33.74 | 3 | | | 1.01 | | | | 0.70 | | | | 0.23 | | | | 4.9 | | | | 1.93 | |
| | | | | | | | | | | | | | |
2022 | | | 18.63 | | | | 0.00 | 6 | | | (3.75 | ) | | | (3.75 | ) | | | 0.00 | | | | (0.06 | ) | | | (0.06 | ) | | | 14.82 | | | | (20.21 | )3 | | | 1.07 | 7 | | | 0.70 | | | | 0.02 | | | | 3.5 | | | | 42.09 | |
| | | | | | | | | | | | | | |
2021 | | | 14.56 | | | | (0.01 | ) | | | 4.09 | | | | 4.08 | | | | (0.01 | ) | | | 0.00 | | | | (0.01 | ) | | | 18.63 | | | | 28.01 | 3 | | | 1.47 | | | | 0.70 | | | | (0.04 | ) | | | 4.3 | | | | 10.58 | |
| | | | | | | | | | | | | | |
2020 | | | 11.82 | | | | 0.03 | | | | 2.73 | | | | 2.76 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 14.56 | | | | 23.34 | 3 | | | 1.93 | | | | 0.70 | | | | 0.23 | | | | 2.5 | | | | 16.55 | |
| | | | | | | | | | | | | | |
2019 | | | 10.75 | | | | 0.06 | | | | 1.04 | | | | 1.10 | | | | (0.03 | ) | | | 0.00 | | | | (0.03 | ) | | | 11.82 | | | | 10.34 | 3 | | | 4.65 | | | | 0.70 | | | | 0.53 | | | | 0.5 | | | | 13.23 | |
| 1 | Based on average shares outstanding. |
| 2 | Total returns reflect reinvestment of all dividends and distributions, if any. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | Less than $0.01 per share |
| 7 | Includes interest expense of less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 55 |
| | |
| Baron Investment Funds Trust | | March 31, 2024 |
FUND EXPENSES (Unaudited)
As a shareholder of the Funds, you incur ongoing expenses. Ongoing expenses include advisory fees, distribution and service (12b-1) fees and other Fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The information in the following table is based on an investment of $1,000 invested on October 1, 2023 and held for the six months ended March 31, 2024.
ACTUAL EXPENSES
The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading titled “Expenses Paid During the Period”.
BASED ON ACTUAL TOTAL RETURN FOR THE SIX MONTHS ENDED MARCH 31, 2024^
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Actual Total Return | | | Beginning Account Value October 1, 2023 | | | Ending Account Value March 31, 2024 | | | Annualized Expense Ratio | | | Expenses Paid During the Period1 | |
Baron Asset Fund — Retail Shares | | | 19.05 | % | | $ | 1,000.00 | | | $ | 1,190.50 | | | | 1.30 | % | | $ | 7.12 | |
Baron Asset Fund — Institutional Shares | | | 19.20 | % | | $ | 1,000.00 | | | $ | 1,192.00 | | | | 1.04 | % | | $ | 5.70 | |
Baron Asset Fund — R6 Shares | | | 19.20 | % | | $ | 1,000.00 | | | $ | 1,192.00 | | | | 1.04 | % | | $ | 5.70 | |
Baron Growth Fund — Retail Shares | | | 13.50 | % | | $ | 1,000.00 | | | $ | 1,135.00 | | | | 1.33 | %4 | | $ | 7.10 | |
Baron Growth Fund — Institutional Shares | | | 13.65 | % | | $ | 1,000.00 | | | $ | 1,136.50 | | | | 1.07 | %4 | | $ | 5.72 | |
Baron Growth Fund — R6 Shares | | | 13.65 | % | | $ | 1,000.00 | | | $ | 1,136.50 | | | | 1.08 | %4 | | $ | 5.77 | |
Baron Small Cap Fund — Retail Shares | | | 25.78 | % | | $ | 1,000.00 | | | $ | 1,257.80 | | | | 1.30 | % | | $ | 7.34 | |
Baron Small Cap Fund — Institutional Shares | | | 25.94 | % | | $ | 1,000.00 | | | $ | 1,259.40 | | | | 1.04 | % | | $ | 5.87 | |
Baron Small Cap Fund — R6 Shares | | | 25.95 | % | | $ | 1,000.00 | | | $ | 1,259.50 | | | | 1.05 | % | | $ | 5.93 | |
Baron Opportunity Fund — Retail Shares | | | 32.57 | % | | $ | 1,000.00 | | | $ | 1,325.70 | | | | 1.31 | % | | $ | 7.62 | |
Baron Opportunity Fund — Institutional Shares | | | 32.75 | % | | $ | 1,000.00 | | | $ | 1,327.50 | | | | 1.05 | % | | $ | 6.11 | |
Baron Opportunity Fund — R6 Shares | | | 32.75 | % | | $ | 1,000.00 | | | $ | 1,327.50 | | | | 1.05 | % | | $ | 6.11 | |
Baron Fifth Avenue Growth Fund — Retail Shares | | | 32.29 | % | | $ | 1,000.00 | | | $ | 1,322.90 | 2 | | | 1.00 | %3 | | $ | 5.81 | |
Baron Fifth Avenue Growth Fund — Institutional Shares | | | 32.45 | % | | $ | 1,000.00 | | | $ | 1,324.50 | 2 | | | 0.75 | %3 | | $ | 4.36 | |
Baron Fifth Avenue Growth Fund — R6 Shares | | | 32.42 | % | | $ | 1,000.00 | | | $ | 1,324.20 | 2 | | | 0.75 | %3 | | $ | 4.36 | |
Baron Discovery Fund — Retail Shares | | | 17.42 | % | | $ | 1,000.00 | | | $ | 1,174.20 | | | | 1.32 | % | | $ | 7.17 | |
Baron Discovery Fund — Institutional Shares | | | 17.58 | % | | $ | 1,000.00 | | | $ | 1,175.80 | | | | 1.05 | % | | $ | 5.71 | |
Baron Discovery Fund — R6 Shares | | | 17.54 | % | | $ | 1,000.00 | | | $ | 1,175.40 | | | | 1.06 | % | | $ | 5.76 | |
Baron Durable Advantage Fund — Retail Shares | | | 26.19 | % | | $ | 1,000.00 | | | $ | 1,261.90 | 2 | | | 0.95 | %3 | | $ | 5.37 | |
Baron Durable Advantage Fund — Institutional Shares | | | 26.32 | % | | $ | 1,000.00 | | | $ | 1,263.20 | 2 | | | 0.70 | %3 | | $ | 3.96 | |
Baron Durable Advantage Fund — R6 Shares | | | 26.37 | % | | $ | 1,000.00 | | | $ | 1,263.70 | 2 | | | 0.70 | %3 | | $ | 3.96 | |
| ^ | Assumes reinvestment of all dividends and capital gain distributions, if any. |
| 1 | Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. |
| 2 | Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived. |
| 3 | Annualized expense ratios are adjusted to reflect fee waiver. |
| 4 | Annualized expense ratio for Baron Growth Fund for the six months ended March 31, 2024, includes 1.29%, 1.03%, and 1.04% for net operating expenses, and 0.04%, 0.04%, and 0.04% for interest expense for Retail, Institutional, and R6 Shares, respectively. |
56
| | |
| March 31, 2024 | | Baron Investment Funds Trust |
FUND EXPENSES (Unaudited) (Continued)
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account values and expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example relating to the Funds with the 5% hypothetical examples that appear in the shareholder reports of other funds.
BASED ON HYPOTHETICAL TOTAL RETURN FOR THE SIX MONTHS ENDED MARCH 31, 2024
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Hypothetical Annualized Total Return | | | Beginning Account Value October 1, 2023 | | | Ending Account Value March 31, 2024 | | | Annualized Expense Ratio | | | Expenses Paid During the Period1 | |
Baron Asset Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.50 | | | | 1.30 | % | | $ | 6.56 | |
Baron Asset Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.80 | | | | 1.04 | % | | $ | 5.25 | |
Baron Asset Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.80 | | | | 1.04 | % | | $ | 5.25 | |
Baron Growth Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.35 | | | | 1.33 | %4 | | $ | 6.71 | |
Baron Growth Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.65 | | | | 1.07 | %4 | | $ | 5.40 | |
Baron Growth Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.60 | | | | 1.08 | %4 | | $ | 5.45 | |
Baron Small Cap Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.50 | | | | 1.30 | % | | $ | 6.56 | |
Baron Small Cap Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.80 | | | | 1.04 | % | | $ | 5.25 | |
Baron Small Cap Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.75 | | | | 1.05 | % | | $ | 5.30 | |
Baron Opportunity Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.45 | | | | 1.31 | % | | $ | 6.61 | |
Baron Opportunity Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.75 | | | | 1.05 | % | | $ | 5.30 | |
Baron Opportunity Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.75 | | | | 1.05 | % | | $ | 5.30 | |
Baron Fifth Avenue Growth Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.00 | 2 | | | 1.00 | %3 | | $ | 5.05 | |
Baron Fifth Avenue Growth Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,021.25 | 2 | | | 0.75 | %3 | | $ | 3.79 | |
Baron Fifth Avenue Growth Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,021.25 | 2 | | | 0.75 | %3 | | $ | 3.79 | |
Baron Discovery Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.32 | % | | $ | 6.66 | |
Baron Discovery Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.75 | | | | 1.05 | % | | $ | 5.30 | |
Baron Discovery Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.70 | | | | 1.06 | % | | $ | 5.35 | |
Baron Durable Advantage Fund- Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.25 | 2 | | | 0.95 | %3 | | $ | 4.80 | |
Baron Durable Advantage Fund- Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,021.50 | 2 | | | 0.70 | %3 | | $ | 3.54 | |
Baron Durable Advantage Fund- R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,021.50 | 2 | | | 0.70 | %3 | | $ | 3.54 | |
| 1 | Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. |
| 2 | Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived. |
| 3 | Annualized expense ratios are adjusted to reflect fee waiver. |
| 4 | Annualized expense ratio for Baron Growth Fund for the six months ended March 31, 2024, includes 1.29%, 1.03%, and 1.04% for net operating expenses, and 0.04%, 0.04%, and 0.04% for interest expense for Retail, Institutional, and R6 Shares, respectively. |
57
Privacy Notice
The Funds collect nonpublic personal information about you from the following sources:
| ∎ | | Information we receive from you on applications or other forms; |
| ∎ | | Information about your transactions with us, our Adviser or others; and |
| ∎ | | Information we receive from third parties, such as credit reporting agencies. |
“Nonpublic personal information” is private information about you that we obtain in connection with providing a financial product or service to you.
We may share your name and address with other Baron Funds and the Adviser and its affiliates for the purpose of sending you information about our products that we believe may be of interest to you and informing you of our upcoming Baron Investment Conference and for sending required information.
We do not disclose any nonpublic personal information about our customers to anyone, except as permitted or required by law. Examples of permitted disclosures under the law include sharing with companies that work for us to provide you services, such as the Transfer Agent or mailing house. All such companies that act on our behalf are contractually obligated to keep the information that we provide to them confidential and to use the information only to provide the services that we have asked them to perform for you and us.
We restrict access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.
This privacy notice is also available at all times on the Baron Funds® website, baronfunds.com or by calling 1-800-99BARON.
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MARCH 31
SEMITRUST 3/31/2024
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included herein under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certification of each of the principal executive officers and principal financial officers of the Registrant as required by Rule 30a-2(a) under the 1940 Act.
(b) Certification of each of the principal executive officers and principal financial officers of the Registrant as required by Rule 30a-2(b) under the 1940 Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| BARON INVESTMENT FUNDS TRUST |
| |
| By: | | /s/ Ronald Baron |
| | Ronald Baron |
| | Chief Executive Officer |
|
| Date: May 28, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ Ronald Baron |
| | Ronald Baron |
| | Chief Executive Officer |
|
| Date: May 28, 2024 |
| |
| By: | | /s/ Christopher Snively |
| | Christopher Snively |
| | Funds Treasurer |
|
| Date: May 28, 2024 |
