Form N-CSR BARON INVESTMENT FUNDS For: Sep 30

December 6, 2021 12:38 PM EST

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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 f/k/a

BARON ASSET FUND

(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: September 30, 2021

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17CRF 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 5th Street, NW, Washington, D.C. 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

SEC 2569 (5-07)

 

 

 


Item 1. Report 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

 

September 30, 2021

 

Baron Funds®

Baron Investment Funds Trust

Annual Financial Report

 

Baron Asset Fund  
Ticker Symbols:  

Retail Shares: BARAX    Institutional Shares: BARIX    R6 Shares: BARUX

 
Performance     2  
Top Ten Holdings     3  
Sector Breakdown     3  
Management’s Discussion of Fund Performance     3  
Baron Growth Fund  
Ticker Symbols:  

Retail Shares: BGRFX    Institutional Shares: BGRIX    R6 Shares: BGRUX

 
Performance     4  
Top Ten Holdings     5  
Sector Breakdown     5  
Management’s Discussion of Fund Performance     5  
Baron Small Cap Fund  
Ticker Symbols:  

Retail Shares: BSCFX    Institutional Shares: BSFIX    R6 Shares: BSCUX

 
Performance     6  
Top Ten Holdings     7  
Sector Breakdown     7  
Management’s Discussion of Fund Performance     7  
Baron Opportunity Fund  
Ticker Symbols:  

Retail Shares: BIOPX    Institutional Shares: BIOIX    R6 Shares: BIOUX

 
Performance     8  
Top Ten Holdings     9  
Sector Breakdown     9  
Management’s Discussion of Fund Performance     9  
Baron Fifth Avenue Growth Fund  
Ticker Symbols:  

Retail Shares: BFTHX    Institutional Shares: BFTIX    R6 Shares: BFTUX

 
Performance     10  
Top Ten Holdings     11  
Sector Breakdown     11  
Management’s Discussion of Fund Performance     11  
Baron Discovery Fund  
Ticker Symbols:  

Retail Shares: BDFFX    Institutional Shares: BDFIX    R6 Shares: BDFUX

 
Performance     12  
Top Ten Holdings     13  
Sector Breakdown     13  
Management’s Discussion of Fund Performance     13  
Baron Durable Advantage Fund  
Ticker Symbols:  

Retail Shares: BDAFX    Institutional Shares: BDAIX    R6 Shares: BDAUX

 
Performance     14  
Top Ten Holdings     15  
Sector Breakdown     15  
Management’s Discussion of Fund Performance     15  
Financial Statements        
Statements of Net Assets     16  
Statements of Assets and Liabilities     29  
Statements of Operations     31  
Statements of Changes in Net Assets     33  
Notes to Financial Statements     36  
Financial Highlights     49  
Report of Independent Registered Public Accounting Firm     56  
Statement Regarding Liquidity Risk Management Program     57  
Tax Information     58  
Fund Expenses     59  
Disclosure Regarding the Approval of the Investment Advisory Agreements for the Funds by the Board of Trustees     61  
Management of the Funds     62  

DEAR BARON INVESTMENT FUNDS SHAREHOLDER:

In this report, you will find audited 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 year ended September 30, 2021. 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,

 

LOGO   LOGO   LOGO

Ronald Baron

Chief Executive Officer

November 23, 2021

 

Linda S. Martinson

Chairman, President and

Chief Operating Officer

November 23, 2021

 

Peggy Wong

Treasurer and

Chief Financial Officer

November 23, 2021

 

This 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, and Baron New Asia Fund series, please visit the Funds’ website at www.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 www.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 www.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 portfolio holdings 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 www.sec.gov. Schedules of portfolio holdings 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 www.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.

 

LOGO


Baron Asset Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON ASSET FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL MIDCAP GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Ten
Years
    Since
Inception
(June 12,
1987)
 

Baron Asset Fund — Retail Shares1,2

    24.96%       18.41%       20.13%       17.69%       12.35%  

Baron Asset Fund — Institutional Shares1,2,4

    25.29%       18.72%       20.45%       18.00%       12.46%  

Baron Asset Fund — R6 Shares1,2,4

    25.28%       18.72%       20.44%       18.00%       12.46%  

Russell Midcap Growth Index1

    30.45%       19.14%       19.27%       17.54%       11.08% 3 

S&P 500 Index1

    30.00%       15.99%       16.90%       16.63%       10.46%  

 

 

1 

The Russell MidcapTM Growth Index measures the performance of medium-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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 

For the period June 30, 1987 to September 30, 2021.

 

4 

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.

 

2


September 30, 2021 (Unaudited)   Baron Asset Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Gartner, Inc.

     7.4%  

IDEXX Laboratories, Inc.

     6.8%  

Mettler-Toledo International, Inc.

     4.3%  

Vail Resorts, Inc.

     3.3%  

ANSYS, Inc.

     3.2%  

Bio-Techne Corporation

     3.1%  

Verisk Analytics, Inc.

     3.1%  

West Pharmaceutical Services, Inc.

     3.1%  

CoStar Group, Inc.

     3.0%  

Ceridian HCM Holding Inc.

     3.0%  
       40.3%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Asset Fund1 increased 24.96%, while the Russell Midcap Growth Index rose 30.45% and the S&P 500 Index rose 30.00%.

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 sustainable competitive advantages, strong financial characteristics, and exceptional management; and operate in industries with favorable growth characteristics.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Health Care, Information Technology, and Financials investments contributed the most. No sector detracted from performance.

Gartner, Inc. was the top contributor. After taking a hit during the pandemic due to the shutdown of its events business, shares of this provider of syndicated research increased on financial results that bested analyst forecasts. Growth in the research business has stabilized and is poised to return to double-digit levels. We expect improved revenue growth combined with renewed focus on cost control will drive margin expansion and enhanced free cash flow generation. Gartner’s balance sheet is in excellent shape, and we expect an acceleration in repurchases.

Wix.com Ltd. was the top detractor. Shares of the leading provider of software that helps micro-businesses build and maintain their websites declined later in the period after the company reported financial results that showed some slowdown in new customer additions as a result of lapping accelerated COVID-19 trends. We retain conviction in Wix’s long-term opportunity as it enables small businesses to transition online in a post-pandemic world.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. We do believe inflation will stay elevated and interest rates will trend higher.

We continue to adhere to our longstanding investment methodology while working hard to identify beneficiaries of secular trends in technology and consumer preferences, many of which have been accelerated by the pandemic. We remain optimistic that this approach will generate strong performance for our portfolio, regardless of the economic climate.

 

 

 

 

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 the Retail Shares.

 

3


Baron Growth Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON GROWTH FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Ten
Years
    Since
Inception
(December 31,
1994)
 

Baron Growth Fund — Retail Shares1,2

    36.19%       19.45%       20.85%       17.33%       14.11%  

Baron Growth Fund — Institutional Shares1,2,3

    36.55%       19.75%       21.16%       17.64%       14.25%  

Baron Growth Fund — R6 Shares1,2,3

    36.56%       19.75%       21.16%       17.64%       14.25%  

Russell 2000 Growth Index1

    33.27%       11.70%       15.34%       15.74%       8.89%  

S&P 500 Index1

    30.00%       15.99%       16.90%       16.63%       10.82%  

 

 

 

1 

The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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


September 30, 2021 (Unaudited)   Baron Growth Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

MSCI, Inc.

     11.0%  

Vail Resorts, Inc.

     7.3%  

Gartner, Inc.

     5.2%  

FactSet Research Systems, Inc.

     5.1%  

CoStar Group, Inc.

     5.0%  

IDEXX Laboratories, Inc.

     4.8%  

Penn National Gaming, Inc.

     4.6%  

Bio-Techne Corporation

     4.5%  

ANSYS, Inc.

     4.3%  

Choice Hotels International, Inc.

     4.1%  
       55.9%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Growth Fund1 increased 36.19%, while the Russell 2000 Growth Index increased 33.27% and the S&P 500 Index increased 30.00%.

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.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Financials, Health Care, and Consumer Discretionary contributed the most. Materials was a slight detractor.

MSCI, Inc. was the top contributor. Shares of this leading provider of investment decision support tools rose on strong earnings results and optimism from management regarding the economic and market backdrop going forward. MSCI also enhanced its private markets capabilities with the acquisition of Real Capital Analytics. We retain long-term conviction as the company owns strong, “all weather” franchises and remains positioned, in our view, to benefit from numerous secular tailwinds in the investment community.

Specialty insurer Kinsale Capital Group, Inc. was the top detractor. The stock more than doubled from March through November of 2020, which may have led to profit-taking in the period. In addition, the stock migrated from a small-cap to a mid-cap index, which likely led to forced selling from small-cap funds. We continue to own Kinsale because we believe the company has a long runway for growth in an attractive segment of the insurance market.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. We do believe inflation will stay elevated and interest rates will trend higher.

We continue to adhere to our longstanding investment methodology while working hard to identify beneficiaries of secular trends in technology and consumer preferences, many of which have been positively impacted by the pandemic. We remain optimistic that this approach will generate strong performance for our portfolio, regardless of the economic climate.

 

 

 

 

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 the Retail Shares.

 

5


Baron Small Cap Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON SMALL CAP FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Ten
Years
    Since
Inception
(September 30,
1997)
 

Baron Small Cap Fund — Retail Shares1,2

    29.77%       17.55%       19.98%       16.85%       11.43%  

Baron Small Cap Fund — Institutional Shares1,2,3

    30.11%       17.86%       20.29%       17.15%       11.58%  

Baron Small Cap Fund — R6 Shares1,2,3

    30.09%       17.86%       20.29%       17.15%       11.58%  

Russell 2000 Growth Index1

    33.27%       11.70%       15.34%       15.74%       7.32%  

S&P 500 Index1

    30.00%       15.99%       16.90%       16.63%       8.53%  

 

 

 

1 

The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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


September 30, 2021 (Unaudited)   Baron Small Cap Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Gartner, Inc.

     5.4%  

ICON Plc

     3.7%  

ASGN Incorporated

     3.3%  

Installed Building Products, Inc.

     3.0%  

SiteOne Landscape Supply, Inc.

     3.0%  

Floor & Decor Holdings, Inc.

     2.8%  

Vertiv Holdings, LLC

     2.8%  

Guidewire Software, Inc.

     2.7%  

DexCom, Inc.

     2.1%  

SBA Communications Corp.

     2.0%  
       30.8%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Small Cap Fund1 increased 29.77%, while the Russell 2000 Growth Index increased 33.27% and the S&P 500 Index increased 30.00%.

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.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Holdings in Information Technology, Industrials, and Health Care contributed the most. Real Estate investments detracted slightly.

Gartner, Inc. was the top contributor. After taking a hit during the pandemic due to the shutdown of its events business, shares of this provider of syndicated research increased on financial results that bested analyst forecasts. Growth in the research business has stabilized and is poised to return to double-digit levels. We expect improved revenue growth combined with renewed focus on cost control will drive margin expansion and enhanced free cash flow generation. Gartner’s balance sheet is in excellent shape, and we expect an acceleration in repurchases.

Clarivate Plc, a provider of IP and scientific information, tools, and services, was the top detractor. The stock fell on mixed financial results coupled with a broader rotation out of high-growth technology-related stocks that benefited earlier in the pandemic. The disclosure of a second request from the Federal Trade Commission on Clarivate’s pending acquisition of ProQuest also weighed on shares. We believe the ProQuest acquisition will close and Clarivate will be a steady earnings compounder with M&A optionality, which should drive solid returns over a multi-year period.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We do believe inflation will stay elevated and interest rates will trend higher.

Even when the macroeconomic picture gets confusing, we believe the most important thing to focus on is the actual performance of our holdings. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. None of the macro factors we discuss above should obscure the fact that we are in an era of great opportunity, and we believe our companies will continue to thrive and grow their value.

 

 

 

 

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 the Retail Shares.

 

7


Baron Opportunity Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON OPPORTUNITY FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL 3000 GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Ten
Years
    Since
Inception
(February 29,
2000)
 

Baron Opportunity Fund — Retail Shares1,2

    33.58%       33.88%       32.60%       21.19%       10.60%  

Baron Opportunity Fund — Institutional Shares1,2,3

    33.91%       34.26%       32.95%       21.52%       10.77%  

Baron Opportunity Fund — R6 Shares1,2,3

    33.94%       34.26%       32.96%       21.53%       10.77%  

Russell 3000 Growth Index1

    27.57%       21.27%       22.30%       19.40%       6.96%  

S&P 500 Index1

    30.00%       15.99%       16.90%       16.63%       7.51%  

 

 

 

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 those companies classified as growth among the largest 3,000 U.S. companies, and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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 reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2032, 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


September 30, 2021 (Unaudited)   Baron Opportunity Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Microsoft Corporation

     8.6%  

Alphabet Inc.

     6.5%  

Amazon.com, Inc.

     4.9%  

Tesla, Inc.

     3.3%  

ZoomInfo Technologies Inc.

     3.0%  

Acceleron Pharma Inc.

     2.8%  

Ceridian HCM Holding Inc.

     2.7%  

NVIDIA Corporation

     2.6%  

Gartner, Inc.

     2.5%  

argenx SE

     2.1%  
       39.0%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Opportunity Fund1 increased 33.58%, while the Russell 3000 Growth Index increased 27.57% and the S&P 500 Index increased 30.00%.

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.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Information Technology, Communication Services, and Health Care contributed the most. Financials and Real Estate detracted slightly.

Alphabet Inc. was the top contributor. Shares of the parent company of Google were up given continued recovery in advertising spend, strong cloud revenue growth, and improved cost controls. We maintain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in AI, autonomous driving (Waymo), and life sciences (Verily, Calico).

Alibaba Group Holding Limited was the top detractor. Alibaba is the largest retailer and e-commerce company in China. The company operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares were down given crackdowns by Chinese regulators on various aspects of digital technology and consumerism. We believe Alibaba’s core business remains highly profitable, complemented by rapid growth in the cloud business and inflection in the Cainiao logistics and New Retail segments.

This continues to be a time of significant unknowns. However, we don’t have to answer the unanswerable to deliver strong investment returns. Rather, we are focusing our research, analysis, and investment decisions, as we always do, on what we can know and what matters. This means identifying the durable secular growth trends we believe will drive economic growth regardless of short-term economic cycles or stock market gyrations as well as the companies with sustainable competitive advantages, profitable business models, and long-term-oriented managers driving or riding those trends. We establish and monitor short- and long-term price targets for all our holdings and target companies using internal projections of revenues, earnings, and free cash flow and appropriate multiples, and we buy or add to our stakes in these companies at prices where we believe we can deliver substantial returns.

 

 

 

 

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 the Retail Shares.

 

9


Baron Fifth Avenue Growth Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON FIFTH AVENUE GROWTH FUND

(RETAIL SHARES) IN RELATION TO THE RUSSELL 1000 GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Ten
Years
    Since
Inception
(April 30,
2004)
 

Baron Fifth Avenue Growth Fund — Retail Shares1,2

    19.13%       22.62%       24.20%       20.34%       11.78%  

Baron Fifth Avenue Growth Fund — Institutional Shares1,2,3

    19.44%       22.93%       24.52%       20.65%       11.98%  

Baron Fifth Avenue Growth Fund — R6 Shares1,2,3

    19.45%       22.93%       24.52%       20.65%       11.98%  

Russell 1000 Growth Index1

    27.32%       22.00%       22.84%       19.68%       12.31%  

S&P 500 Index1

    30.00%       15.99%       16.90%       16.63%       10.33%  

 

 

 

1 

The Russell 1000® Growth Index measures the performance of large-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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 reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2032, 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


September 30, 2021 (Unaudited)   Baron Fifth Avenue Growth Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Amazon.com, Inc.

     7.6%  

Alphabet Inc.

     6.9%  

ServiceNow, Inc.

     4.8%  

Facebook, Inc.

     4.7%  

EPAM Systems, Inc.

     4.3%  

Adobe Inc.

     3.8%  

Intuitive Surgical, Inc.

     3.7%  

Veeva Systems Inc.

     3.5%  

ASML Holding N.V.

     3.3%  

Mastercard Incorporated

     3.2%  
       45.8%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Fifth Avenue Growth Fund1 increased 19.13%, while the Russell 1000 Growth Index increased 27.32% and the S&P 500 Index increased 30.00%.

Baron Fifth Avenue Growth Fund focuses on identifying and investing in what we believe are unique companies with sustainable 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. Sector weightings are incidental to portfolio construction, and sector exposure is a result of stock selection.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Information Technology, Communication Services, and Health Care holdings contributed the most. Industrials holdings detracted slightly.

Alphabet Inc. was the top contributor. Shares of the parent company of Google were up given continued recovery in advertising spend, strong cloud revenue growth, and improved cost controls. We maintain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in AI, autonomous driving (Waymo), and life sciences (Verily, Calico).

Alibaba Group Holding Limited was the top detractor. Alibaba is the largest retailer and e-commerce company in China. The company operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares were down given crackdowns by Chinese regulators on various aspects of digital technology and consumerism. We exited our position.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. We do believe inflation will stay elevated and interest rates will trend higher.

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.

 

 

 

 

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 the Retail Shares.

 

11


Baron Discovery Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON DISCOVERY FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Five
Years
    Since
Inception
(September 30,
2013)
 

Baron Discovery Fund — Retail Shares1,2

    35.61%       20.16%       25.23%       19.74%  

Baron Discovery Fund — Institutional Shares1,2

    35.97%       20.48%       25.55%       20.03%  

Baron Discovery Fund — R6 Shares1,2,3

    35.97%       20.49%       25.56%       20.04%  

Russell 2000 Growth Index1

    33.27%       11.70%       15.34%       11.97%  

S&P 500 Index1

    30.00%       15.99%       16.90%       14.71%  

 

 

 

 

The Fund’s 1-, 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 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into 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 reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2032, 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


September 30, 2021 (Unaudited)   Baron Discovery Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Endava plc

     2.7%  

The Beauty Health Company

     2.6%  

Future plc

     2.3%  

Mercury Systems, Inc.

     2.2%  

S4 Capital plc

     2.2%  

Progyny, Inc.

     2.1%  

Floor & Decor Holdings, Inc.

     2.1%  

Axonics, Inc.

     2.0%  

Kinsale Capital Group, Inc.

     2.0%  

Advanced Energy Industries, Inc.

     2.0%  
       22.2%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Discovery Fund1 increased 35.61%, while the Russell 2000 Growth Index increased 33.27% and the S&P 500 Index increased 30.00%.

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.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Information Technology, Health Care, and Industrials contributed the most. Materials detracted slightly in the period.

Pacific Biosciences of California, Inc. (“PacBio”) was the top contributor. Shares of this provider of long-read DNA sequencing systems rose on increasing investor conviction around the potential for PacBio’s platform as it lowers sequencing costs and seeks to move beyond its current commercial niche. We sold our position as the stock price reached our longer-term price target.

Mercury Systems, Inc., a leading Tier 2 defense electronics integration company, was the top detractor. Shares were down along with the broader defense industry due to concerns that defense spending will be a lower priority under the new administration. In addition, management took down 2021 guidance due to some program delays. We believe Mercury will see organic re-acceleration as well as acquisitions and the share price is a bargain.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. We do believe inflation will stay elevated and interest rates will trend higher.

Over the longer term, we remain encouraged by the prospects for our investments. We try not to be sidetracked by the macro “noise” and instead focus our energies on managing our existing investments and finding new ones. We continue to find high-quality, fast-growing small companies with significant stock appreciation potential.

 

 

 

 

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 the Retail Shares.

 

13


Baron Durable Advantage Fund (Unaudited)   September 30, 2021

 

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON DURABLE ADVANTAGE FUND

(RETAIL SHARES) IN RELATION TO THE S&P 500 INDEX

 

LOGO

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED SEPTEMBER 30, 2021

 

     One
Year
    Three
Years
    Since
Inception
(December 29,
2017)
 

Baron Durable Advantage Fund — Retail Shares1,2

    27.70%       20.04%       17.96%  

Baron Durable Advantage Fund — Institutional Shares1,2

    28.01%       20.31%       18.23%  

Baron Durable Advantage Fund — R6 Shares1,2

    28.01%       20.32%       18.21%  

S&P 500 Index1

    30.00%       15.99%       15.66%  

 

 

 

 

1 

The S&P 500 Index measures the performance of 500 widely held large cap U.S. companies. The index and the Fund are with dividends reinvested, which positively impact the performance results. The index is unmanaged. The index performance is not Fund performance; one cannot invest directly into 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 reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2032, 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


September 30, 2021 (Unaudited)   Baron Durable Advantage Fund

 

TOP TEN HOLDINGS AS OF SEPTEMBER 30, 2021

 

      Percent of
Net Assets
 

Microsoft Corporation

     8.9%  

Alphabet Inc.

     7.4%  

Facebook, Inc.

     5.1%  

Danaher Corporation

     4.3%  

UnitedHealth Group Incorporated

     4.2%  

Adobe Inc.

     4.1%  

Visa, Inc.

     4.0%  

IHS Markit Ltd.

     3.5%  

Mastercard Incorporated

     3.4%  

Accenture plc

     3.3%  
       48.2%  

SECTOR BREAKDOWN AS OF SEPTEMBER 30, 2021

(as a percentage of net assets)

 

LOGO

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

For the 12 months ended September 30, 2021, Baron Durable Advantage Fund1 increased 27.70% while the S&P 500 Index increased 30.00%.

Baron Durable Advantage Fund invests primarily 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.

U.S. markets mostly continued their upward trajectory from the March 2020 trough throughout the period. Positive news on vaccines kicked things off, exciting investors about the prospects of a return to normalcy. Additional fiscal and monetary support as well as strong corporate profits and continued low interest rates also kept the rally going. All these factors helped outweigh concerns about inflation, supply chain issues, labor shortages, and the surge of the COVID-19 Delta variant for much of the period.

Information Technology, Communication Services, and Health Care investments contributed the most. Consumer Discretionary holdings detracted slightly.

Alphabet Inc. was the top contributor. Shares of the parent company of Google were up given continued recovery in advertising spend, strong cloud revenue growth, and improved cost controls. We maintain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in AI, autonomous driving (Waymo), and life sciences (Verily, Calico).

AstraZeneca PLC was the top detractor. Shares of this multi-national pharmaceutical company were impacted by negative news involving AstraZeneca’s joint development with Oxford University of a viral-based COVID-19 vaccine. Given mixed results due to an unforeseen error in dosing that occurred in the Brazilian market, the vaccine timelines slipped, hurting share performance. We exited our position.

The economic and investment outlook is more uncertain than in the last few quarters. Headwinds, including supply chain disruptions, workforce shortages, rising interest rates, and inflation, seem less likely to resolve quickly. The Federal Reserve has signaled a less accommodating monetary policy going forward. These concerns notwithstanding, we still expect economic growth to be strong through the end of this year and into 2022 as the pandemic wanes and normalcy returns. We think our companies will be able to handle near-term cost pressures and profits will revert to uptrends. We do believe inflation will stay elevated and interest rates will trend higher.

We believe 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, proven track records of successful capital allocation, high returns on invested capital, and high free cash flow generation, a significant portion of which is regularly returned to shareholders as dividends or share repurchases. We are optimistic about the prospects of the companies we own while continuing to search for new ideas and opportunities.

 

 

 

 

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 the Retail Shares.

 

15


Baron Asset Fund      September 30, 2021

 

STATEMENT OF NET ASSETS

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (98.54%)  
Communication Services (5.64%)  
 

Cable & Satellite (0.93%)

 

  330,000    

Liberty Broadband Corporation, Cl C1

  $ 23,532,283     $ 56,991,000  
 

Interactive Media & Services (4.71%)

   
  450,000    

Pinterest, Inc., Cl A1

    17,342,210       22,927,500  
  1,378,144    

Tripadvisor, Inc.1

    48,150,707       46,650,174  
  1,287,965    

Zillow Group, Inc., Cl C1

    44,039,787       113,521,235  
  1,755,709    

ZoomInfo Technologies Inc., Cl A1

    44,675,583       107,431,834  
   

 

 

   

 

 

 
    154,208,287       290,530,743  
 

 

 

   

 

 

 
 

Total Communication Services

    177,740,570       347,521,743  
 

 

 

   

 

 

 
Consumer Discretionary (6.71%)  
 

Education Services (0.34%)

   
  150,000    

Bright Horizons Family Solutions, Inc.1

    16,921,054       20,913,000  
 

Hotels, Resorts & Cruise Lines (1.80%)

   
  546,442    

Choice Hotels International, Inc.

    5,198,084       69,053,876  
  543,233    

Hyatt Hotels Corp., Cl A1

    16,817,762       41,883,264  
   

 

 

   

 

 

 
    22,015,846       110,937,140  
 

Internet & Direct Marketing Retail (1.30%)

   
  1,000,000    

Farfetch Limited, Cl A1,2

    28,985,121       37,480,000  
  1,075,000    

Stitch Fix, Inc., Cl A1

    63,486,884       42,946,250  
   

 

 

   

 

 

 
    92,472,005       80,426,250  
 

Leisure Facilities (3.27%)

 

  603,538    

Vail Resorts, Inc.1,5

    11,683,688       201,611,869  
   

 

 

   

 

 

 
 

Total Consumer Discretionary

    143,092,593       413,888,259  
 

 

 

   

 

 

 
Financials (10.40%)  
 

Asset Management & Custody Banks (0.76%)

   
  237,514    

T. Rowe Price Group, Inc.

    5,729,987       46,719,004  
 

Financial Exchanges & Data (4.85%)

   
  370,725    

FactSet Research Systems, Inc.

    19,898,420       146,354,816  
  257,267    

MarketAxess Holdings, Inc.

    31,487,484       108,229,654  
  30,000    

MSCI, Inc.

    7,783,774       18,250,200  
  326,189    

Tradeweb Markets, Inc., Cl A

    11,978,713       26,349,547  
   

 

 

   

 

 

 
    71,148,391       299,184,217  
 

Insurance Brokers (0.60%)

   
  158,421    

Willis Towers Watson plc2

    19,439,430       36,826,546  
 

Investment Banking & Brokerage (2.16%)

   
  1,825,936    

The Charles Schwab Corp.

    1,609,715       133,001,178  
 

Property & Casualty Insurance (1.36%)

   
  2,203,444    

Arch Capital Group Ltd.1,2

    7,933,936       84,127,492  
 

Regional Banks (0.67%)

 

  216,421    

First Republic Bank

    5,518,736       41,743,282  
   

 

 

   

 

 

 
 

Total Financials

    111,380,195       641,601,719  
 

 

 

   

 

 

 
Shares          Cost     Value  
Common Stocks (continued)  
Health Care (26.46%)  
 

Biotechnology (0.62%)

 

  136,925    

Acceleron Pharma, Inc.1

  $ 13,026,017     $ 23,564,793  
  48,366    

argenx SE, ADR1,2

    15,852,353       14,606,532  
   

 

 

   

 

 

 
    28,878,370       38,171,325  
 

Health Care Equipment (9.31%)

   
  173,000    

DexCom, Inc.1

    55,276,880       94,606,780  
  673,630    

IDEXX Laboratories, Inc.1

    12,186,829       418,930,497  
  161,644    

Teleflex, Inc.

    29,645,959       60,867,048  
   

 

 

   

 

 

 
    97,109,668       574,404,325  
 

Health Care Supplies (4.55%)

   
  215,418    

The Cooper Companies, Inc.

    36,713,299       89,034,414  
  50,000    

Warby Parker, Inc., Cl A1

    2,704,500       2,652,500  
  444,404    

West Pharmaceutical Services, Inc.

    19,259,047       188,667,274  
   

 

 

   

 

 

 
    58,676,846       280,354,188  
 

Health Care Technolgy (2.15%)

 

  459,386    

Veeva Systems, Inc., Cl A1

    27,115,596       132,381,264  
 

Life Sciences Tools & Services (9.83%)

   
  100,682    

10X Genomics, Inc., Cl A1

    3,926,598       14,657,285  
  399,986    

Bio-Techne Corporation

    39,595,546       193,821,216  
  336,000    

Guardant Health, Inc.1,4

    29,804,184       42,003,360  
  217,552    

Illumina, Inc.1

    9,280,300       88,241,267  
  194,117    

Mettler-Toledo International, Inc.1

    11,674,111       267,368,991  
   

 

 

   

 

 

 
    94,280,739       606,092,119  
 

 

 

   

 

 

 
 

Total Health Care

    306,061,219       1,631,403,221  
 

 

 

   

 

 

 
Industrials (13.58%)  
 

Environmental & Facilities Services (0.94%)

   
  1,643,418    

Rollins, Inc.

    24,597,482       58,061,958  
 

Industrial Conglomerates (1.90%)

 

  262,192    

Roper Technologies, Inc.

    27,877,853       116,971,717  
 

Industrial Machinery (1.14%)

 

  340,760    

IDEX Corporation

    24,525,881       70,520,282  
 

Research & Consulting Services (9.60%)

   
  2,230,474    

Clarivate Plc1,2

    35,903,681       48,847,380  
  2,154,930    

CoStar Group, Inc.1

    42,162,593       185,453,276  
  1,468,500    

TransUnion

    79,691,638       164,927,235  
  961,206    

Verisk Analytics, Inc.

    23,863,743       192,500,726  
   

 

 

   

 

 

 
    181,621,655       591,728,617  
 

 

 

   

 

 

 
 

Total Industrials

    258,622,871       837,282,574  
 

 

 

   

 

 

 
Information Technology (30.81%)  
 

Application Software (15.20%)

 

  571,856    

ANSYS, Inc.1

    20,310,482       194,688,375  
  395,300    

Aspen Technology, Inc.1

    40,628,908       48,542,840  
  390,000    

Avalara, Inc.1

    55,839,446       68,160,300  
  1,636,093    

Ceridian HCM Holding, Inc.1

    64,026,866       184,256,794  
  609,340    

Clearwater Analytics Holdings, Inc., Cl A1

    13,205,253       15,605,197  
  125,000    

Fair Isaac Corp.1

    51,657,237       49,741,250  
  1,421,809    

Guidewire Software, Inc.1

    77,473,157       169,010,436  
  63,861    

HubSpot, Inc.1

    38,242,458       43,175,784  
  290,000    

RingCentral, Inc., Cl A1

    65,867,482       63,075,000  
  771,076    

SS&C Technologies Holdings, Inc.

    20,933,204       53,512,674  
  669,000    

The Trade Desk, Inc., Cl A1

    13,112,791       47,030,700  
   

 

 

   

 

 

 
    461,297,284       936,799,350  
 

 

16   See Notes to Financial Statements.


September 30, 2021      Baron Asset Fund

 

STATEMENT OF NET ASSETS (Continued)

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (continued)  
Information Technology (continued)  
 

Data Processing & Outsourced Services (1.21%)

   
  614,217    

Fidelity National Information Services, Inc.

  $ 35,255,588     $ 74,737,925  
 

Electronic Components (1.07%)

   
  900,000    

Amphenol Corp., Cl A

    42,881,684       65,907,000  
 

Internet Services & Infrastructure (3.56%)

   
  592,103    

Verisign, Inc.1

    27,318,889       121,387,036  
  500,000    

Wix.com Ltd.1,2

    46,031,911       97,985,000  
   

 

 

   

 

 

 
    73,350,800       219,372,036  
 

IT Consulting & Other Services (8.60%)

   
  132,000    

EPAM Systems, Inc.1

    75,568,309       75,303,360  
  1,497,323    

Gartner, Inc.1

    32,461,274       455,006,513  
   

 

 

   

 

 

 
    108,029,583       530,309,873  
 

Technology Distributors (1.17%)

   
  397,363    

CDW Corp.

    26,228,965       72,328,013  
   

 

 

   

 

 

 
 

Total Information Technology

    747,043,904       1,899,454,197  
 

 

 

   

 

 

 
Materials (0.48%)  
 

Specialty Chemicals (0.48%)

 

  1,853,529    

Diversey Holdings Ltd.1,2

    27,802,935       29,730,605  
   

 

 

   

 

 

 
Real Estate (4.46%)  
 

Real Estate Services (0.86%)

 

  542,323    

CBRE Group, Inc., Cl A1

    6,067,334       52,800,567  
 

Specialized REITs (3.60%)

   
  205,000    

Alexandria Real Estate Equities, Inc.4

    30,958,643       39,169,350  
  80,416    

Equinix, Inc.

    5,298,108       63,539,094  
  360,856    

SBA Communications Corp.

    9,303,270       119,288,168  
   

 

 

   

 

 

 
      45,560,021       221,996,612  
   

 

 

   

 

 

 
 

Total Real Estate

    51,627,355       274,797,179  
   

 

 

   

 

 

 
 

Total Common Stocks

    1,823,371,642       6,075,679,497  
   

 

 

   

 

 

 
     
Private Preferred Stocks (0.65%)  
Industrials (0.65%)  
 

Aerospace & Defense (0.65%)

   
  96,298    

Space Exploration Technologies Corp., Cl N1,3,4,8

    26,000,460       39,979,078  
   

 

 

   

 

 

 
     
Principal Amount   Cost     Value  
Short Term Investments (0.91%)  
  $56,289,320    

Repurchase Agreement with Fixed Income Clearing Corp., dated 9/30/2021, 0.00% due 10/1/2021; Proceeds at maturity - $56,289,320; (Fully collateralized by $56,471,000 U.S. Treasury Note, 1.625% due 5/15/2031 Market value - $57,415,125)7

  $ 56,289,320     $ 56,289,320  
   

 

 

   

 

 

 
 

Total Investments (100.10%)

  $ 1,905,661,422       6,171,947,895  
   

 

 

   
 

Liabilities Less Cash and Other Assets (-0.10%)6

      (6,276,686
     

 

 

 
 

Net Assets

    $ 6,165,671,209  
     

 

 

 
 

Retail Shares (Equivalent to $120.59 per share
based on 23,812,800 shares outstanding)

 
 
  $ 2,871,697,681  
     

 

 

 
 

Institutional Shares (Equivalent to $126.47 per share
based on 24,576,421 shares outstanding)

 
 
  $ 3,108,205,976  
     

 

 

 
 

R6 Shares (Equivalent to $126.45 per share
based on 1,469,128 shares outstanding)

 
 
  $ 185,767,552  
     

 

 

 

 

%

Represents percentage of net assets.

1 

Non-income producing securities.

2 

Foreign corporation.

3 

At September 30, 2021, the market value of restricted and fair valued securities amounted to $39,979,078 or 0.65% of net assets. This security is 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 

All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $15,032,250.

6 

Includes net unrealized depreciation of $346,731 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity.

7 

Level 2 security. See Note 7 regarding Fair Value Measurements.

8 

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      September 30, 2021

 

STATEMENT OF NET ASSETS

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (99.44%)  
Communication Services (4.05%)  
 

Alternative Carriers (3.42%)

 

  7,900,000    

Iridium Communications, Inc.1,4

  $ 48,702,979     $ 314,815,000  
 

Movies & Entertainment (0.63%)

 

  3,000,000    

Manchester United plc, Cl A2

    40,663,063       58,110,000  
   

 

 

   

 

 

 
 

Total Communication Services

    89,366,042       372,925,000  
   

 

 

   

 

 

 
Consumer Discretionary (21.47%)  
 

Casinos & Gaming (5.86%)

 

  440,000    

Boyd Gaming Corporation1

    11,056,072       27,834,400  
  5,860,000    

Penn National Gaming, Inc.1

    76,269,257       424,615,600  
  1,695,000    

Red Rock Resorts, Inc., Cl A1

    31,464,689       86,817,900  
   

 

 

   

 

 

 
    118,790,018       539,267,900  
 

Education Services (1.98%)

   
  1,310,000    

Bright Horizons Family Solutions, Inc.1

    41,415,154       182,640,200  
 

Hotels, Resorts & Cruise Lines (6.27%)

   
  3,000,000    

Choice Hotels International, Inc.4

    72,782,127       379,110,000  
  1,255,000    

Marriott Vacations Worldwide Corp.

    67,098,661       197,449,150  
   

 

 

   

 

 

 
    139,880,788       576,559,150  
 

Leisure Facilities (7.26%)

   
  2,000,000    

Vail Resorts, Inc.1,6

    56,102,209       668,100,000  
 

Restaurants (0.10%)

   
  665,166    

Krispy Kreme, Inc.1

    11,123,467       9,312,324  
   

 

 

   

 

 

 
 

Total Consumer Discretionary

    367,311,636       1,975,879,574  
   

 

 

   

 

 

 
Financials (30.96%)  
 

Asset Management & Custody Banks (2.72%)

   
  1,925,000    

The Carlyle Group, Inc.

    39,343,287       91,014,000  
  1,900,000    

Cohen & Steers, Inc.

    41,176,154       159,163,000  
   

 

 

   

 

 

 
    80,519,441       250,177,000  
 

Financial Exchanges & Data (18.88%)

   
  1,200,000    

FactSet Research Systems, Inc.

    59,954,575       473,736,000  
  980,000    

Morningstar, Inc.

    20,062,517       253,849,400  
  1,660,000    

MSCI, Inc.

    31,110,586       1,009,844,400  
   

 

 

   

 

 

 
    111,127,678       1,737,429,800  
 

Investment Banking & Brokerage (0.84%)

   
  450,000    

Houlihan Lokey, Inc.

    19,625,873       41,445,000  
  575,000    

Moelis & Co., Cl A

    10,512,876       35,575,250  
   

 

 

   

 

 

 
      30,138,749       77,020,250  
 

Life & Health Insurance (2.71%)

   
  1,625,000    

Primerica, Inc.

    34,117,583       249,648,750  
 

Property & Casualty Insurance (5.56%)

   
  9,165,000    

Arch Capital Group Ltd.1,2

    28,618,247       349,919,700  
  1,000,000    

Kinsale Capital Group, Inc.

    35,007,763       161,700,000  
   

 

 

   

 

 

 
    63,626,010       511,619,700  
 

Thrifts & Mortgage Finance (0.25%)

   
  520,000    

Essent Group Ltd.2

    14,300,210       22,885,200  
   

 

 

   

 

 

 
 

Total Financials

    333,829,671       2,848,780,700  
   

 

 

   

 

 

 
Shares          Cost     Value  
Common Stocks (continued)  
Health Care (14.88%)  
 

Biotechnology (0.33%)

   
  600,000    

Denali Therapeutics, Inc.1

  $ 11,149,573     $ 30,270,000  
 

Health Care Equipment (4.80%)

   
  710,000    

IDEXX Laboratories, Inc.1

    10,098,555       441,549,000  
 

Health Care Supplies (2.96%)

   
  1,147,434    

Neogen Corp.1

    13,141,411       49,833,059  
  525,000    

West Pharmaceutical Services, Inc.

    17,892,374       222,883,500  
   

 

 

   

 

 

 
    31,033,785       272,716,559  
 

Health Care Technology (0.54%)

   
  900,000    

Schrödinger, Inc.1

    12,855,679       49,212,000  
 

Life Sciences Tools & Services (5.83%)

   
  300,000    

Adaptive Biotechnologies Corporation1

    8,492,535       10,197,000  
  845,000    

Bio-Techne Corporation

    44,647,907       409,461,650  
  85,000    

Mettler-Toledo International, Inc.1

    3,889,531       117,075,600  
   

 

 

   

 

 

 
    57,029,973       536,734,250  
 

Pharmaceuticals (0.42%)

   
  598,076    

Dechra Pharmaceuticals PLC (United Kingdom)2

    18,422,044       39,083,614  
   

 

 

   

 

 

 
 

Total Health Care

    140,589,609       1,369,565,423  
   

 

 

   

 

 

 
Industrials (7.90%)  
 

Building Products (2.05%)

   
  1,850,000    

Trex Company, Inc.1

    16,703,505       188,570,500  
 

Environmental & Facilities Services (0.20%)

   
  1,220,102    

BrightView Holdings, Inc.1

    15,117,285       18,008,706  
 

Industrial Machinery (0.61%)

   
  4,275,000    

Marel hf (Netherlands)2

    18,281,671       29,216,480  
  3,303,044    

Velo3D, Inc.1,3,5,9

    33,030,440       27,018,900  
   

 

 

   

 

 

 
    51,312,111       56,235,380  
 

Research & Consulting Services (5.04%)

   
  5,390,000    

CoStar Group, Inc.1

    22,535,814       463,863,400  
   

 

 

   

 

 

 
 

Total Industrials

    105,668,715       726,677,986  
   

 

 

   

 

 

 
Information Technology (14.50%)  
 

Application Software (9.12%)

   
  725,000    

Altair Engineering, Inc., Cl A1

    11,330,019       49,981,500  
  1,150,000    

ANSYS, Inc.1

    26,542,827       391,517,500  
  1,025,000    

Guidewire Software, Inc.1

    31,789,104       121,841,750  
  1,000,000    

Pegasystems, Inc.

    13,997,009       127,100,000  
  740,741    

SmartRent, Inc.1

    7,407,410       9,644,448  
  2,000,000    

SS&C Technologies Holdings, Inc.

    15,291,856       138,800,000  
   

 

 

   

 

 

 
    106,358,225       838,885,198  
 

Electronic Components (0.18%)

   
  60,000    

Littelfuse, Inc.

    6,452,400       16,396,200  
 

IT Consulting & Other Services (5.20%)

   
  1,575,000    

Gartner, Inc.1

    22,061,706       478,611,000  
   

 

 

   

 

 

 
 

Total Information Technology

    134,872,331       1,333,892,398  
   

 

 

   

 

 

 
 

 

18   See Notes to Financial Statements.


September 30, 2021      Baron Growth Fund

 

STATEMENT OF NET ASSETS (Continued)

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (continued)  
Materials (0.05%)  
 

Commodity Chemicals (0.05%)

   
  418,777    

Zymergen, Inc., Series D1,3,9

  $ 9,350,000     $ 4,979,259  
   

 

 

   

 

 

 
Real Estate (5.63%)  
 

Diversified REITs (0.08%)

   
  200,000    

American Assets Trust, Inc.

    3,437,272       7,484,000  
 

Office REITs (1.27%)

   
  3,700,000    

Douglas Emmett, Inc.

    39,249,426       116,957,000  
 

Specialized REITs (4.28%)

   
  750,000    

Alexandria Real Estate Equities, Inc.5

    26,054,962       143,302,500  
  5,400,000    

Gaming and Leisure Properties, Inc.

    114,745,147       250,128,000  
   

 

 

   

 

 

 
    140,800,109       393,430,500  
   

 

 

   

 

 

 
 

Total Real Estate

    183,486,807       517,871,500  
   

 

 

   

 

 

 
 

Total Common Stocks

    1,364,474,811       9,150,571,840  
 

 

 

   

 

 

 
     
Private Convertible Preferred Stocks (0.45%)  
Industrials (0.18%)  
 

Electrical Components & Equipment (0.18%)

   
  59,407,006    

Northvolt AB, Series E (Sweden)2,3,5,9

    9,374,988       16,346,194  
   

 

 

   

 

 

 
Materials (0.27%)  
 

Fertilizers & Agricultural Chemicals (0.27%)

   
  80,440    

Farmers Business Network, Inc., Series G1,3,5,9

    5,000,000       4,782,962  
  341,838    

Farmers Business Network, Inc., Series F1,3,5,9

    11,300,002       20,059,054  
   

 

 

   

 

 

 
 

Total Materials

    16,300,002       24,842,016  
   

 

 

   

 

 

 
 

Total Private Convertible Preferred Stocks

    25,674,990       41,188,210  
   

 

 

   

 

 

 
     
Warrants (0.00%)  
Consumer Discretionary (0.00%)  
 

Hotels, Resorts & Cruise Lines (0.00%)

   
  96,515    

OneSpaWorld Holdings Ltd. Warrants, Exp 3/19/20241,2,5

    0       289,545  
   

 

 

   

 

 

 
     
Principal Amount   Cost     Value  
Short Term Investments (0.10%)  
  $8,848,377    

Repurchase Agreement with Fixed Income Clearing Corp., dated 9/30/2021, 0.00% due 10/1/2021; Proceeds at maturity - $8,848,377; (Fully collateralized by $9,072,200 U.S. Treasury Note, 1.25% due 9/30/2028 Market value - $9,025,424)8

  $ 8,848,377     $ 8,848,377  
   

 

 

   

 

 

 
 

Total Investments (99.99%)

  $ 1,398,998,178       9,200,897,972  
   

 

 

   
 

Cash and Other Assets Less Liabilities (0.01%)7

      1,073,452  
     

 

 

 
 

Net Assets

    $ 9,201,971,424  
     

 

 

 
 

Retail Shares (Equivalent to $117.64 per share
based on 25,852,465 shares outstanding)

 
 
  $ 3,041,361,238  
     

 

 

 
 

Institutional Shares (Equivalent to $122.73 per share
based on 48,355,821 shares outstanding)

 
 
  $ 5,934,832,087  
     

 

 

 
 

R6 Shares (Equivalent to $122.75 per share
based on 1,839,378 shares outstanding)

 
 
  $ 225,778,099  
     

 

 

 

 

%

Represents percentage of net assets.

1 

Non-income producing securities.

2 

Foreign corporation.

3 

At September 30, 2021, the market value of restricted and fair valued securities amounted to $73,186,369 or 0.80% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities.

4 

See Note 10 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 

All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $26,389,950.

7 

Includes net unrealized depreciation of $746,100 on unfunded commitments with special purpose acquisition companies to purchase when-issued private investments in a public entities.

8 

Level 2 security. See Note 7 regarding Fair Value Measurements.

9 

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      September 30, 2021

 

STATEMENT OF NET ASSETS

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (99.93%)  
Communication Services (3.96%)  
 

Cable & Satellite (1.66%)

   
  80,000    

Liberty Broadband Corporation, Cl A1

  $ 319,985     $ 13,468,000  
  260,000    

Liberty Broadband Corporation, Cl C1

    1,017,091       44,902,000  
  625,000    

Liberty Media Corp.-Liberty SiriusXM, Cl C1

    1,322,731       29,668,750  
   

 

 

   

 

 

 
    2,659,807       88,038,750  
 

Movies & Entertainment (2.30%)

   
  1,250,000    

Liberty Media Corporation-Liberty Formula One, Cl C1

    22,521,105       64,262,500  
  225,000    

Madison Square Garden Entertainment Corp.1

    3,552,159       16,350,750  
  225,000    

Madison Square Garden Sports Corp.1

    8,416,556       41,838,750  
   

 

 

   

 

 

 
    34,489,820       122,452,000  
   

 

 

   

 

 

 
 

Total Communication Services

    37,149,627       210,490,750  
   

 

 

   

 

 

 
Consumer Discretionary (16.73%)  
 

Auto Parts & Equipment (0.96%)

   
  4,250,000    

Holley, Inc.1

    42,725,069       50,745,000  
 

Casinos & Gaming (4.16%)

   
  925,000    

DraftKings, Inc., Cl A1

    11,844,047       44,548,000  
  1,025,000    

Penn National Gaming, Inc.1

    18,170,393       74,271,500  
  2,000,000    

Red Rock Resorts, Inc., Cl A1

    43,795,020       102,440,000  
   

 

 

   

 

 

 
    73,809,460       221,259,500  
 

Education Services (1.64%)

   
  625,000    

Bright Horizons Family Solutions, Inc.1

    19,174,147       87,137,500  
 

General Merchandise Stores (0.62%)

 

 
  550,000    

Ollie’s Bargain Outlet Holdings, Inc.1

    32,232,509       33,154,000  
 

Home Improvement Retail (2.84%)

 

 
  1,250,000    

Floor & Decor Holdings, Inc., Cl A1

    44,151,665       150,987,500  
 

Homebuilding (3.02%)

   
  1,500,000    

Installed Building Products, Inc.4

    83,052,523       160,725,000  
 

Hotels, Resorts & Cruise Lines (0.47%)

 

 
  2,000,000    

Membership Collective Group, Inc., Cl A1

    27,900,478       24,880,000  
 

Leisure Facilities (1.18%)

   
  800,000    

Planet Fitness, Inc., Cl A1

    28,416,505       62,840,000  
 

Restaurants (1.31%)

   
  1,100,000    

The Cheesecake Factory, Inc.1

    26,921,175       51,700,000  
  418,182    

Dutch Bros, Inc., Cl A1

    9,618,186       18,115,644  
   

 

 

   

 

 

 
    36,539,361       69,815,644  
 

Specialized Consumer Services (0.53%)

 

 
  1,000,000    

European Wax Center, Inc., Cl A1

    17,067,333       28,010,000  
   

 

 

   

 

 

 
 

Total Consumer Discretionary

    405,069,050       889,554,144  
   

 

 

   

 

 

 
Consumer Staples (0.97%)  
 

Packaged Foods & Meats (0.97%)

 

 
  3,000,000    

UTZ Brands, Inc.

    49,020,000       51,390,000  
   

 

 

   

 

 

 
Shares          Cost     Value  
Common Stocks (continued)  
Financials (4.41%)  
 

Insurance Brokers (1.88%)

   
  3,000,000    

BRP Group, Inc., Cl A1

  $ 48,364,954     $ 99,870,000  
 

Investment Banking & Brokerage (1.08%)

   
  625,000    

Houlihan Lokey, Inc.

    28,909,333       57,562,500  
 

Property & Casualty Insurance (1.45%)

 

 
  475,000    

Kinsale Capital Group, Inc.

    67,820,848       76,807,500  
   

 

 

   

 

 

 
 

Total Financials

    145,095,135       234,240,000  
   

 

 

   

 

 

 
Health Care (15.62%)  
 

Health Care Equipment (7.21%)

   
  1,000,000    

Axonics, Inc.1

    35,459,918       65,090,000  
  300,000    

CryoPort, Inc.1

    13,683,573       19,953,000  
  200,000    

DexCom, Inc.1

    2,652,860       109,372,000  
  95,000    

IDEXX Laboratories, Inc.1

    1,314,205       59,080,500  
  320,000    

Inspire Medical Systems, Inc.1,5

    16,558,159       74,521,600  
  1,000,000    

Silk Road Medical, Inc.1,5

    38,972,604       55,030,000  
   

 

 

   

 

 

 
    108,641,319       383,047,100  
 

Health Care Supplies (0.35%)

   
  500,000    

Figs, Inc., Cl A1

    12,760,012       18,570,000  
 

Life Sciences Tools & Services (5.86%)

   
  250,000    

Guardant Health, Inc.1,5

    4,953,266       31,252,500  
  750,000    

ICON plc1,2

    49,241,341       196,515,000  
  2,652,592    

MaxCyte, Inc. (United Kingdom)1,5,6

    31,357,616       32,353,980  
  37,500    

Mettler-Toledo International, Inc.1

    1,817,455       51,651,000  
   

 

 

   

 

 

 
    87,369,678       311,772,480  
 

Managed Health Care (0.97%)

   
  800,000    

HealthEquity, Inc.1

    13,208,487       51,808,000  
 

Pharmaceuticals (1.23%)

   
  1,000,000    

Dechra Pharmaceuticals PLC (United Kingdom)2

    28,027,985       65,348,909  
   

 

 

   

 

 

 
 

Total Health Care

    250,007,481       830,546,489  
   

 

 

   

 

 

 
Industrials (23.71%)  
 

Aerospace & Defense (3.35%)

   
  2,350,000    

Kratos Defense & Security Solutions, Inc.1

    35,335,984       52,428,500  
  1,000,000    

Mercury Systems, Inc.1

    25,872,953       47,420,000  
  125,000    

TransDigm Group, Inc.1

    0       78,071,250  
   

 

 

   

 

 

 
    61,208,937       177,919,750  
 

Building Products (2.83%)

   
  1,090,609    

TheThe AZEK Co., Inc.1

    25,084,007       39,839,947  
  3,000,000    

Janus International
Group, Inc., Cl A1

    30,000,000       36,720,000  
  725,000    

Trex Company, Inc.1

    27,101,408       73,899,250  
   

 

 

   

 

 

 
    82,185,415       150,459,197  
 

Diversified Support Services (1.00%)

   
  1,850,000    

Driven Brands Holdings, Inc.1

    45,803,401       53,446,500  
 

Electrical Components & Equipment (3.46%)

   
  1,200,000    

Shoals Technologies Group, Inc., Cl A1

    32,825,720       33,456,000  
  6,250,000    

Vertiv Holdings Co.

    61,620,882       150,562,500  
   

 

 

   

 

 

 
    94,446,602       184,018,500  
 

 

20   See Notes to Financial Statements.


September 30, 2021      Baron Small Cap Fund

 

STATEMENT OF NET ASSETS (Continued)

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (continued)  
Industrials (continued)  
 

Environmental & Facilities Services (1.18%)

   
  500,000    

Waste Connections, Inc.2

  $ 21,833,333     $ 62,965,000  
 

Human Resource & Employment Services (3.93%)

   
  1,550,000    

ASGN, Inc.1

    34,021,695       175,367,000  
  1,750,000    

First Advantage Corp.1

    26,390,061       33,337,500  
   

 

 

   

 

 

 
    60,411,756       208,704,500  
 

Industrial Machinery (2.22%)

   
  500,000    

John Bean Technologies Corp.

    42,775,112       70,275,000  
  225,000    

RBC Bearings, Incorporated1

    24,593,639       47,745,000  
   

 

 

   

 

 

 
    67,368,751       118,020,000  
 

Research & Consulting Services (1.65%)

 

 
  4,000,000    

Clarivate Plc1,2

    44,078,833       87,600,000  
 

Trading Companies & Distributors (4.09%)

   
  3,250,000    

Hillman Solutions Corp.1,5

    37,752,933       38,772,500  
  500,000    

Hydrofarm Holdings Group, Inc.1,5

    23,336,421       18,925,000  
  800,000    

SiteOne Landscape Supply, Inc.1

    19,405,950       159,576,000  
   

 

 

   

 

 

 
    80,495,304       217,273,500  
   

 

 

   

 

 

 
 

Total Industrials

    557,832,332       1,260,406,947  
   

 

 

   

 

 

 
Information Technology (28.69%)  
 

Application Software (11.16%)

   
  750,000    

Altair Engineering, Inc., Cl A1

    11,935,619       51,705,000  
  800,000    

Aspen Technology, Inc.1

    29,983,938       98,240,000  
  850,000    

Ceridian HCM Holding, Inc.1

    23,711,721       95,727,000  
  500,000    

Clearwater Analytics Holdings, Inc., Cl A1

    10,820,073       12,805,000  
  5,000,000    

E2open Parent Holdings, Inc.1

    50,859,472       56,500,000  
  1,886,792    

E2open Parent Holdings, Inc., Cl A1,3,7

    19,999,995       20,547,165  
  1,225,000    

Guidewire Software, Inc.1

    31,269,358       145,615,750  
  3,500,000    

SmartRent, Inc. (formerly, Fifth Wall Acquisition Corp. I)1,5

    38,625,571       45,570,000  
  950,000    

The Trade Desk, Inc., Cl A1

    3,372,500       66,785,000  
   

 

 

   

 

 

 
      220,578,247       593,494,915  
 

Data Processing & Outsourced Services (5.53%)

   
  750,000    

Nuvei Corp., (Canada), 144A1,2

    20,780,312       86,640,000  
  3,500,000    

Paya Holdings, Inc., Cl A1

    36,561,336       38,045,000  
  3,500,000    

Repay Holdings Corporation1

    30,228,850       80,605,001  
  405,170    

Shift4 Payments, Inc., Cl A1

    9,677,975       31,408,778  
  325,000    

WEX, Inc.1

    13,547,002       57,245,500  
   

 

 

   

 

 

 
      110,795,475       293,944,279  
 

Electronic Equipment & Instruments (1.81%)

 

 
  1,200,000    

Cognex Corp.

    9,420,069       96,264,000  
 

Internet Services & Infrastructure (1.11%)

 

 
  300,000    

Wix.com Ltd.1,2

    15,501,799       58,791,000  
 

IT Consulting & Other Services (8.58%)

 

 
  750,000    

Endava plc, ADR1,2

    23,557,249       101,887,500  
  950,000    

Gartner, Inc.1

    14,034,173       288,686,000  
  2,250,000    

Grid Dynamics Holdings, Inc.1

    22,274,704       65,745,000  
   

 

 

   

 

 

 
      59,866,126       456,318,500  
 

Systems Software (0.50%)

   
  682,429    

Jamf Holding Corp.1,5

    19,287,457       26,287,165  
   

 

 

   

 

 

 
 

Total Information Technology

    435,449,173       1,525,099,859  
   

 

 

   

 

 

 
Shares          Cost     Value  
Common Stocks (continued)  
Materials (2.49%)  
 

Metal & Glass Containers (0.91%)

 

 
  800,000    

Berry Global Group, Inc.1

  $ 12,652,147     $ 48,704,000  
 

Specialty Chemicals (1.58%)

   
  1,809,631    

Avient Corp.

    57,788,524       83,876,396  
   

 

 

   

 

 

 
 

Total Materials

    70,440,671       132,580,396  
   

 

 

   

 

 

 
Real Estate (3.35%)  
 

Specialized REITs (3.35%)

   
  2,500,000    

Americold Realty Trust5

    51,727,682       72,625,000  
  320,000    

SBA Communications Corp.

    1,289,008       105,782,400  
   

 

 

   

 

 

 
 

Total Real Estate

    53,016,690       178,407,400  
   

 

 

   

 

 

 
 

Total Common Stocks

    2,003,080,159       5,312,715,985  
   

 

 

   

 

 

 
     
     
Principal Amount              
Short Term Investments (0.06%)  
  $2,983,303    

Repurchase Agreement with Fixed Income Clearing Corp., dated 9/30/2021, 0.00% due 10/1/2021; Proceeds at maturity - $2,983,303; (Fully collateralized by $2,904,600 U.S. Treasury Bond, 2.25% due 5/15/2041 Market value - $3,043,023)6

    2,983,303       2,983,303  
   

 

 

   

 

 

 
 

Total Investments (99.99%)

  $ 2,006,063,462       5,315,699,288  
   

 

 

   
 

Cash and Other Assets Less Liabilities (0.01%)

      757,259  
     

 

 

 
 

Net Assets

    $ 5,316,456,547  
     

 

 

 
 

Retail Shares (Equivalent to $40.67 per share
based on 44,983,254 shares outstanding)

 
 
  $ 1,829,446,479  
     

 

 

 
 

Institutional Shares (Equivalent to $43.12 per share
based on 74,547,365 shares outstanding)

 
 
  $ 3,214,212,037  
     

 

 

 
 

R6 Shares (Equivalent to $43.10 per share
based on 6,329,204 shares outstanding)

 
 
  $ 272,798,031  
     

 

 

 

 

%

Represents percentage of net assets.

1 

Non-income producing securities.

2 

Foreign corporation.

3 

At September 30, 2021, the market value of restricted and fair valued securities amounted to $20,547,165 or 0.39% of net assets. This security is not deemed liquid. See Note 6 regarding Restricted Securities.

4 

See Note 10 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 2 security. See Note 7 regarding Fair Value Measurements.

7 

Level 3 security. 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 September 30, 2021, the market value of Rule 144A securities amounted to $86,640,000 or 1.63% of net assets.

All securities are Level 1, unless otherwise noted.

 

 

See Notes to Financial Statements.   21


Baron Opportunity Fund      September 30, 2021

 

STATEMENT OF NET ASSETS

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (95.00%)  
Communication Services (18.54%)  
 

Interactive Home Entertainment (1.45%)

 

 
  114,000    

Electronic Arts, Inc.

  $ 13,119,491     $ 16,216,500  
  47,500    

Take-Two Interactive Software, Inc.1

    5,288,028       7,318,325  
   

 

 

   

 

 

 
    18,407,519       23,534,825  
 

Interactive Media & Services (15.01%)

 

 
  39,550    

Alphabet, Inc., Cl C1,5

    53,222,693       105,413,011  
  321,000    

Pinterest, Inc., Cl A1

    8,876,431       16,354,950  
  428,000    

Snap, Inc., Cl A1

    6,424,269       31,616,360  
  699,406    

Tripadvisor, Inc.1

    23,476,136       23,674,893  
  199,303    

Zillow Group, Inc., Cl C1

    12,604,492       17,566,566  
  778,369    

ZoomInfo Technologies Inc., Cl A1

    25,572,629       47,628,399  
   

 

 

   

 

 

 
      130,176,650       242,254,179  
 

Movies & Entertainment (2.08%)

   
  650,000    

Endeavor Group Holdings, Inc., Cl A1

    15,600,000       18,635,500  
  24,425    

Netflix, Inc.1

    3,966,732       14,907,555  
   

 

 

   

 

 

 
      19,566,732       33,543,055  
   

 

 

   

 

 

 
 

Total Communication Services

    168,150,901       299,332,059  
   

 

 

   

 

 

 
Consumer Discretionary (11.57%)  
 

Automobile Manufacturers (3.26%)

 

 
  67,900    

Tesla, Inc.1

    2,677,714       52,655,092  
 

Education Services (0.84%)

   
  1,350,000    

Nerdy, Inc.1,4

    15,485,331       13,486,500  
 

Internet & Direct Marketing Retail (7.47%)

 

 
  35,000    

Alibaba Group Holding Ltd. ADR1,2

    2,433,089       5,181,750  
  24,275    

Amazon.com, Inc.1

    29,742,115       79,744,346  
  8,529    

MercadoLibre, Inc.1

    4,838,488       14,323,603  
  533,000    

Stitch Fix, Inc., Cl A1

    28,973,389       21,293,350  
   

 

 

   

 

 

 
    65,987,081       120,543,049  
   

 

 

   

 

 

 
 

Total Consumer Discretionary

    84,150,126       186,684,641  
   

 

 

   

 

 

 
Financials (1.33%)  
 

Consumer Finance (0.97%)

   
  990,099    

SoFi Technologies, Inc.1

    9,900,990       15,722,772  
 

Financial Exchanges & Data (0.36%)

 

 
  13,600    

MarketAxess Holdings, Inc.

    2,665,441       5,721,384  
   

 

 

   

 

 

 
 

Total Financials

    12,566,431       21,444,156  
   

 

 

   

 

 

 
Health Care (15.39%)  
 

Biotechnology (7.82%)

   
  265,779    

Acceleron Pharma, Inc.1

    22,137,670       45,740,566  
  113,639    

argenx SE, ADR1,2

    13,172,425       34,318,978  
  487,600    

Arrowhead Pharmaceuticals, Inc.1

    22,064,385       30,440,868  
  141,086    

Natera, Inc.1,4

    16,131,117       15,722,624  
   

 

 

   

 

 

 
    73,505,597       126,223,036  
 

Health Care Equipment (4.04%)

   
  525,000    

Butterfly Network, Inc.1

    5,250,000       5,481,000  
  131,100    

Edwards Lifesciences Corp.1

    7,561,453       14,841,831  
  17,235    

Intuitive Surgical, Inc.1

    7,296,036       17,134,175  
  134,500    

Shockwave Medical, Inc.1

    6,674,952       27,690,860  
   

 

 

   

 

 

 
    26,782,441       65,147,866  
 

Health Care Supplies (0.38%)

   
  165,779    

Figs, Inc., Cl A1

    5,156,730       6,157,032  
 

Health Care Technology (0.39%)

   
  116,374    

Schrödinger, Inc.1

    2,485,556       6,363,330  
Shares          Cost     Value  
Common Stocks (continued)  
Health Care (continued)  
 

Life Sciences Tools & Services (2.76%)

 

 
  50,419    

10X Genomics, Inc., Cl A1

  $ 3,006,785     $ 7,339,998  
  235,096    

CareDx, Inc.1,4

    7,719,306       14,898,034  
  98,637    

Guardant Health, Inc.1,4

    10,366,504       12,330,611  
  24,415    

Illumina, Inc.1

    3,703,768       9,902,968  
   

 

 

   

 

 

 
    24,796,363       44,471,611  
   

 

 

   

 

 

 
 

Total Health Care

    132,726,687       248,362,875  
   

 

 

   

 

 

 
Industrials (3.18%)  
 

Aerospace & Defense (0.94%)

   
  682,969    

Kratos Defense & Security Solutions, Inc.1

    11,162,207       15,237,038  
 

Industrial Machinery (0.56%)

 

  836,708    

Markforged Holding Corp.1

    7,237,382       5,488,805  
  425,000    

Velo3D, Inc.1,4

    4,238,907       3,557,250  
   

 

 

   

 

 

 
    11,476,289       9,046,055  
 

Research & Consulting Services (1.68%)

 

 
  315,330    

CoStar Group, Inc. 1

    12,772,623       27,137,300  
   

 

 

   

 

 

 
 

Total Industrials

    35,411,119       51,420,393  
   

 

 

   

 

 

 
Information Technology (42.78%)  
 

Application Software (14.14%)

 

  34,900    

Adobe, Inc.1

    8,174,023       20,092,628  
  49,000    

Atlassian Corp. PLC, Cl A1,2

    11,935,490       19,179,580  
  75,000    

Avalara, Inc.1

    10,855,775       13,107,750  
  383,070    

Ceridian HCM Holding, Inc.1

    28,971,891       43,141,344  
  69,346    

Clearwater Analytics Holdings, Inc., Cl A1

    1,248,228       1,775,951  
  232,100    

Guidewire Software, Inc.1

    11,878,404       27,589,727  
  25,000    

HubSpot, Inc.1

    13,504,652       16,902,250  
  108,100    

RingCentral, Inc., Cl A1

    20,153,567       23,511,750  
  39,500    

ServiceNow, Inc.1,4

    9,588,431       24,579,665  
  333,283    

SimilarWeb Ltd.1,2

    7,167,469       6,975,613  
  116,910    

The Trade Desk, Inc., Cl A1

    278,394       8,218,773  
  92,900    

Workday, Inc., Cl A1

    22,587,105       23,214,781  
   

 

 

   

 

 

 
    146,343,429       228,289,812  
 

Data Processing & Outsourced Services (7.37%)

 

 
  3,000    

Adyen N.V., (Netherlands), 144A1,2,7

    2,422,754       8,386,085  
  72,300    

MasterCard Incorporated, Cl A

    16,486,273       25,137,264  
  115,200    

PayPal Holdings, Inc.1

    16,572,834       29,976,192  
  54,500    

Square, Inc., Cl A1

    10,459,131       13,071,280  
  184,054    

Toast, Inc., Cl A1

    7,362,160       9,193,497  
  149,300    

Visa, Inc., Cl A

    25,109,011       33,256,575  
   

 

 

   

 

 

 
    78,412,163       119,020,893  
 

Electronic Equipment & Instruments (1.32%)

 

 
  345,133    

PAR Technology Corp.1

    14,931,208       21,229,131  
 

Internet Services & Infrastructure (1.59%)

 

 
  220,677    

GDS Holdings Limited, ADR1,2

    11,246,223       12,492,525  
  67,043    

Wix.com Ltd.1,2

    3,803,923       13,138,417  
   

 

 

   

 

 

 
    15,050,146       25,630,942  
 

IT Consulting & Other Services (4.18%)

 

 
  202,368    

Endava plc, ADR1,2

    6,819,469       27,491,693  
  131,587    

Gartner, Inc.1

    6,742,678       39,986,657  
   

 

 

   

 

 

 
    13,562,147       67,478,350  
 

Semiconductors (4.00%)

 

  1,770,000    

indie Semiconductor, Inc., Cl A1

    17,169,776       21,788,700  
  206,400    

NVIDIA Corp.

    18,021,140       42,757,824  
   

 

 

   

 

 

 
    35,190,916       64,546,524  
 

 

22   See Notes to Financial Statements.


September 30, 2021      Baron Opportunity Fund

 

STATEMENT OF NET ASSETS (Continued)

 

 

SEPTEMBER 30, 2021

 

 

Shares          Cost     Value  
Common Stocks (continued)  
Information Technology (continued)  
 

Systems Software (10.18%)

 

  61,723    

Crowdstrike Holdings, Inc., Cl A1

  $ 3,067,061     $ 15,170,279  
  493,900    

Microsoft Corporation

    78,400,719       139,240,288  
  32,508    

Snowflake, Inc., Cl A1,4

    3,900,960       9,831,394  
   

 

 

   

 

 

 
    85,368,740       164,241,961  
   

 

 

   

 

 

 
 

Total Information Technology

    388,858,749       690,437,613  
   

 

 

   

 

 

 
Real Estate (2.06%)  
 

Real Estate Services (1.36%)

 

  1,073,230    

Opendoor Technologies, Inc.1

    10,732,300       22,033,412  
 

Specialized REITs (0.70%)

   
  14,225    

Equinix, Inc.

    2,122,124       11,239,599  
   

 

 

   

 

 

 
 

Total Real Estate

    12,854,424       33,273,011  
   

 

 

   

 

 

 
Special Purpose Acquisition Company (0.15%)        
  231,800    

Khosla Ventures Acquisition Co. II, Cl A1

    2,455,228       2,359,724  
   

 

 

   

 

 

 
 

Total Common Stocks

    837,173,665       1,533,314,472  
 

 

 

   

 

 

 
     
Private Common Stocks (0.30%)  
Industrials (0.30%)  
  9,099    

Space Exploration Technologies Corp., Cl A1,3,4,8

    3,821,489       3,777,541  
  2,806    

Space Exploration Technologies Corp., Cl C1,3,4,8

    1,178,492       1,164,939  
   

 

 

   

 

 

 
 

Total Private Common Stocks

    4,999,981       4,942,480  
   

 

 

   

 

 

 
     
Private Convertible Preferred Stocks (2.15%)  
Consumer Discretionary (1.35%)  
 

Automobile Manufacturers (1.35%)

 

 
  484,183    

Rivian Automotive, Inc., Series E1,3,4,8

    7,499,995       17,425,746  
  122,117    

Rivian Automotive, Inc., Series F1,3,4,8

    4,500,011       4,440,174  
   

 

 

   

 

 

 
 

Total Consumer Discretionary

    12,000,006       21,865,920  
   

 

 

   

 

 

 
Materials (0.80%)  
 

Fertilizers & Agricultural Chemicals (0.80%)

 

 
  219,321    

Farmers Business Network, Inc., Series F1,3,4,8

    7,250,007       12,869,756  
   

 

 

   

 

 

 
 

Total Private Convertible Preferred Stocks

    19,250,013       34,735,676  
   

 

 

   

 

 

 
     
Private Preferred Stocks (0.88%)  
Industrials (0.88%)  
 

Aerospace & Defense (0.48%)

   
  18,519    

Space Exploration Technologies Corp., Cl N1,3,4,8

    5,000,130       7,688,348  
 

Trucking (0.40%)

   
  266,956    

GM Cruise Holdings, Cl G1,3,4,8

    7,034,290       6,479,022  
   

 

 

   

 

 

 
 

Total Private Preferred Stocks

    12,034,420       14,167,370  
   

 

 

   

 

 

 
     
Shares          Cost     Value  
Warrants (0.01%)  
Communication Services (0.01%)  
 

Interactive Media & Services (0.01%)

 

 
  106,682    

Taboola.com Ltd., 6/29/20261,2

  $ 192,759     $ 197,362  
   

 

 

   

 

 

 
     
     
Principal Amount              
Short Term Investments (1.86%)  
  $29,940,909    

Repurchase Agreement with
Fixed Income Clearing Corp., dated 9/30/2021, 0.00%
due 10/1/2021; Proceeds at maturity - $29,940,909;
(Fully collateralized by $14,645,800 U.S. Treasury Note, 1.25% due 9/30/2028 Market value - $14,570,286 and $17,082,500 U.S. Treasury Note, 0.625% due 5/15/2030 Market value - $15,969,468)7

    29,940,909       29,940,909  
   

 

 

   

 

 

 
 

Total Investments (100.20%)

  $ 903,591,747       1,617,298,269  
   

 

 

   
 

Liabilities Less Cash and Other Assets (-0.20%)6

      (3,262,186
     

 

 

 
 

Net Assets

    $ 1,614,036,083  
     

 

 

 
 

Retail Shares (Equivalent to $43.49 per share
based on 19,922,040 shares outstanding)

 
 
  $ 866,473,654  
     

 

 

 
 

Institutional Shares (Equivalent to $45.85 per share
based on 15,516,269 shares outstanding)

 
 
  $ 711,422,767  
     

 

 

 
 

R6 Shares (Equivalent to $45.90 per share
based on 787,311 shares outstanding)

 
 
  $ 36,139,662  
     

 

 

 

 

%

Represents percentage of net assets.

1 

Non-income producing securities.

2 

Foreign corporation.

3 

At September 30, 2021, the market value of restricted and fair valued securities amounted to $53,845,526 or 3.34% 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 

All or a portion of these securities are segregated for unfunded commitments. Total value of securities segregated is $13,326,550.

6 

Includes net unrealized depreciation of $299,342 on unfunded commitments with special purpose acquisition companies to purchase when-issued private investments in public entities.