Important Additional Information
Baron Growth Fund’s annualized returns for the Retail Shares as of June 30, 2016: 1-year, (4.19)%; 5-years, 8.94%; 10-years, 7.00%. Annual expense ratio for the Retail Shares as of September 30, 2015 was 1.29%.
Baron Growth Fund’s annualized returns for the Institutional Shares as of June 30, 2016: 1-year, (3.96)%; 5-years, 9.22%; 10-years, 7.19%. Annual expense ratio for the Institutional Shares as of September 30, 2015 was 1.04%.
Baron Partners Fund’s annualized returns for the Retail Shares as of June 30, 2016: 1-year, (7.72)%; 5-years, 10.55%; 10-years, 6.81%. Annual expense ratio for the Retail Shares as of December 31, 2015 was 1.52% (comprised of operating expenses of 1.32% and interest expense of 0.20%).
Baron Partners Fund’s annualized returns for the Institutional Shares as of June 30, 2016: 1-year, (7.48)%; 5-years, 10.85%; 10-years, 7.01%. Annual expense ratio for the Institutional Shares as of December 31, 2015 was 1.26% (comprised of operating expenses of 1.06% and interest expense of 0.20%).
The performance data quoted represents past performance. 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. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, visit www.BaronFunds.com or call 1-800-99BARON.
You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund's distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing.
The Adviser believes that there is more potential for capital appreciation in smaller companies, but there also may be more risk. Specific risks associated with investing in smaller companies include that the securities may be thinly traded and they may be more difficult to sell during market downturns.
The Adviser believes that there is more potential for capital appreciation using non-diversification and leverage, but there also is more risk. Specific risks associated with non-diversification and leverage include increased volatility of the Fund’s returns and exposure of the Fund to greater loss in any given period. The Fund invests in companies of all sizes, including small and medium sized companies whose securities may be thinly traded and made difficult to sell during market downturns. Leverage is the degree to which an investor or business is utilizing borrowed money.
The Fund may not achieve its objectives. Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
The discussion of market trends and companies throughout this report are not intended as advice to any person regarding the advisability of investing in any particular security. Some of our comments are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time of the publication of this report and are subject to change any time based on market and other conditions, and we have no obligation to update them.
The top 10 holdings for the Baron Growth Fund as of June 30, 2016 are as follows:
| Holder |
% Holding |
| Vail Resorts, Inc. |
4.7 |
| Arch Capital Group Ltd. |
4.7 |
| Gartner, Inc. |
4.5 |
| Under Armour, Inc. |
4.4 |
| FactSet Research Systems, Inc. |
4.3 |
| CoStar Group, Inc. |
3.6 |
| The Middleby Corp. |
3.3 |
| Gaming and Leisure Properties, Inc. |
3.2 |
| SS&C Technologies Holdings, Inc. |
2.9 |
| ANSYS, Inc. |
2.8 |
The top 10 holdings for the Baron Partners Fund as of June 30, 2016 are as follows:
| Holding |
% Holding |
| CoStar Group, Inc. |
11.3 |
| Tesla Motors, Inc. |
11 |
| Arch Capital Group Ltd. |
8.1 |
| Vail Resorts, Inc. |
6 |
| Hyatt Hotels Corp. |
6 |
| FactSet Research Systems, Inc. |
5.9 |
| Zillow Group, Inc. |
5.4 |
| IDEXX Laboratories, Inc. |
4.3 |
| Under Armour, Inc. |
4.3 |
| Manchester United plc |
1 |