One Firm, One Focus, One Investment Approach
Every decision we make is in pursuit of a single objective: investments in growth businesses with durable competitive advantages, run by great teams. This single approach has driven consistent performance for over 40 years.
Tesla, Inc.
Long-Term Investors in a Short-Term World
Being a long-term investor means we think about our investments as business owners. We have no particular views on the near-term course of interest rates, inflation, markets, or the overall economy. History shows most that have were wrong anyway. Instead, we are laser-focused on each company’s business fundamentals and our vision of what a business could become.
Our Investment Approach
At Baron Capital, our entire organization is united in a single investment style and objective. We are long-term investors in secular growth businesses with durable competitive advantages that are run by great management teams.
Idea Generation
Baron Capital portfolio managers and research analysts are our single most important source of idea generation. With our roots in research, we have developed deep industry expertise and are knowledgeable about the companies in the industries we cover.
Research
The goal of our research process is to identify and monitor investments that we believe will deliver above-average, long-term, and risk-adjusted results.
Portfolio Construction
Every Baron Capital portfolio is built from the bottom up, stock by stock, based on our conviction about the future growth prospects of each business.
Risk Management
We have a deeply embedded risk management culture. We view risk as the probability of an adverse outcome leading to permanent loss of capital.
Our Investment Philosophy
The companies we invest in typically benefit from innovation, change, government initiatives or economic trends. Durable competitive advantages are critical.
We think like the owner of a business. We focus on a company’s opportunities over the next 5 to 10 years.
Our proprietary research gives us a knowledge advantage. By analyzing businesses with the intention of owning them for an extended period, we develop unique expertise. We conduct rigorous research throughout the life of an investment.
We invest in people, not just the stock. We seek to invest with managements whom we believe have integrity and long-term vision, and whose interests are aligned with their employees, customers, and shareholders.
We buy growth companies using a value-oriented purchase discipline. Our valuation criteria are based upon what we believe a business can earn in 5 to 10 years.
We manage risk at the Firm, individual security, and portfolio levels. Evaluation of environmental, social, and governance is a factor in our risk management process.
News & Insights
Thoughts from Our Investment Team
"What we're trying to do is the old-fashioned, fundamental research - getting to know quality management teams at quality growth companies that we think have competitive advantages in the market and have big markets to exploit where there's not a lot of penetration."
The Role of ESG
ESG Integration Into Our Research Process¹
The assessment of ESG principles is a natural part of the Baron Capital research process and investment approach. We have long sought to find growth companies with sustainable competitive advantages, and we recognize the importance ESG factors and risks play in the long-term success that we seek.
We believe that well managed companies are run by great people who seek to minimize risks and maximize their ability to capitalize on growth opportunities, while being good stewards of capital, good corporate citizens, and benefiting all stakeholders.
¹ Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
Portfolio holdings as a percentage of net assets as of September 30, 2024 for securities mentioned are as follows: Tesla, Inc. - Baron Fifth Avenue Growth Fund (3.3%), Baron Focused Growth Fund (9.8%), Baron Global Advantage Fund (1.0%), Baron Opportunity Fund (4.5%), Baron Partners Fund (33.4%*), Baron Technology Fund (3.3%).
*% of Long Positions
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
