Baron Capital US Small Cap Fund

Clearwater Analytics Holdings, Inc. (CWAN) is a cloud-based software solution providing portfolio accounting and reporting, compliance monitoring, performance tracking, and risk analytics for insurers, investment managers, corporations, and other institutional investors.
We believe Clearwater has a large market opportunity with the possibility of compounding revenue at a high-teens to 20%-plus rate for several years. The company's cloud-based multi-tenant platform should continue to take share from legacy on-premise, service-heavy solutions or homegrown systems as companies increasingly shift operations to the cloud. Clearwater also benefits from powerful network effects driven by its unique data model and high client satisfaction. Its efficient business model should help the company reach a 40%-plus adjusted EBITDA margin over time.

Vertiv Holdings Co (VRT) is a pure-play full-service provider of digital-critical infrastructure solutions for the data center and communications end markets.
As the leader in critical infrastructure solutions for data centers, Vertiv is positioned to exceed end-market growth due to its strong competitive advantage, particularly in liquid cooling, which is essential for AI data centers given the increased energy density of the servers. We expect Vertiv to leverage its healthy contribution margins and strong execution to boost profits, driving robust free cash flow generation that the company could deploy into share buybacks or M&A to create additional value.

Gartner, Inc. (IT) is the leading independent provider of research and advisory services for IT, HR, sales, finance, and marketing leaders.
Gartner has a vast addressable market, which management estimates exceeds $70 billion annually, implying a penetration rate of less than 3%. IT is rapidly changing and growing in strategic importance, leading users to turn to third-party providers for insight into trends. Gartner enjoys retention rates of more than 100%, driven by the low price of its research relative to value. We think consistent execution in Global Technology Sales and improvements in Global Business Sales will help accelerate Research growth into the low double digits.

Cognex Corporation (CGNX) is a leading provider of machine vision systems used in factory automation across the automotive, consumer electronics, logistics, and health care industries. Its machine vision products help manufacturers improve quality, reduce production errors, and lower manufacturing costs.
Machine vision is a foundational technology that underpins advancements in AI, robotics, next-generation automotive production, e-commerce fulfillment, product traceability, counterfeit prevention, consumer electronics manufacturing, and life sciences. Cognex is the global leader in machine vision and invests heavily in R&D to sustain its leadership and expand into new markets. The company’s competitive advantages include deep engineering expertise, an extensive patent portfolio, a strong distribution network, and the ability to service customers worldwide.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in North America. Through its large branch network, the company offers a broad selection of products across irrigation, agronomics, hardscapes, and nursery to landscaping professionals.
While SiteOne is over three times the size of its closest competitor, it has only high-teens share of a highly fragmented market. It has significant opportunity to further consolidate the industry through accretive acquisitions, driven by an experienced management team with a strong M&A track record. With the company’s renewed focus on execution and improving underperforming branches, we expect margin expansion to accelerate in the coming years. It is also investing in technology and productivity initiatives to enhance the customer experience and improve sales efficiency.

Liberty Media Corporation - Liberty Live (LLYVK) consists of Liberty Media Corporation's 30% interest in Live Nation Entertainment, Inc., the world's largest live entertainment company, producing, selling, and promoting concerts, and connecting brands to music.
Live Nation is the dominant player in an industry with solid long-term demand trends. The company has significant opportunities for capital reinvestment. Its investment in new owned and operated venues drives higher concert segment margins relative to shows held at third-party venues, largely due to Live Nation's control of the profitable food and beverage business. As Live Nation's mix shift to owned venues increases, we believe the resulting margin improvement will produce low double-digit growth in adjusted operating income over the long term.

Kinsale Capital Group, Inc. (KNSL) is a property and casualty (P&C) insurer focused exclusively on the excess and surplus (E&S) lines market, which includes risks that are unique or difficult to place in the standard insurance market.
We believe Kinsale is a well-run insurer that should grow earnings and book value per share much faster than its peers. The company's focus on the attractive E&S market, underwriting discipline, and efficient technology platform enable it to rapidly grow premiums while delivering industry-leading underwriting margins. Management is highly regarded and has decades of experience in the E&S market. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

indie Semiconductor, Inc. (INDI), is a fabless designer, developer, and marketer of semiconductors for advanced driver assistance systems and connected car, user experience, and electrification applications. indie is headquartered in the U.S. with a global footprint of design centers close to customers. 
Semiconductor content in cars is expected to grow substantially in the coming decade, driven by enhanced safety and user experience features as well as electrification. Design wins are long-lived, providing great visibility into revenues, and indie has multiple contracts with various OEMs and Tier 1 suppliers. The company's key advantage is cross-domain expertise across analog, processing, and power, offering higher levels of integration and design simplicity, reflected in 90% of its wins being single-sourced. Strategic, synergistic M&A should drive future opportunities.

Enpro Inc. (NPO) is an industrial technology company that offers gaskets and seals for industrial applications, as well as advanced manufacturing, cleaning, coating, refurbishment, and related services for the semiconductor industry.
Enpro has transformed its business over the past five years, divesting more than $1 billion in assets and acquiring over $1.4 billion to improve its end-market mix, growth and margin profile, and competitive moat. Enpro’s industrial businesses focus on high-margin, niche applications with recurring demand, served through industry-leading brands. The semiconductor segment is well positioned to benefit from leading-edge investments and the reshoring of semiconductor production to the U.S. Continued accretive acquisitions remain central to the company’s strategy.

Advanced Drainage Systems, Inc. (WMS) manufactures plastic pipes and related stormwater management products. It has 64 manufacturing plants and 41 distribution centers, primarily in the U.S. Revenue by end market is 44% non-residential, 36% residential, 7% infrastructure, 6% agriculture, and 7% international.
Advanced Drainage Systems is a high-quality business with multiple competitive advantages and is benefiting from secular tailwinds related to increasing storm activity, investments in U.S. manufacturing and infrastructure, and the ongoing conversion from concrete to plastic pipe. The company has the potential to grow sales at a high-single-digit rate and earnings at a double-digit rate over the long term, while generating significant free cash flow that management can reinvest in the business, deploy for acquisitions, and return to shareholders through share repurchases.

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