Baron Discovery Fund

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.

DraftKings Inc. (DKNG) is the leading mobile sportsbook and gaming operator in the U.S. Its products include daily fantasy sports, regulated internet casino gaming, and regulated online sports betting. DraftKings offers sports betting in 26 states and online gaming in five states.
As the market leader in internet gaming, DraftKings is well positioned to capitalize on the rapid growth of regulated sports betting and iGaming in the U.S. The company is demonstrating healthy profit margins in its most mature markets and remains focused on driving strong customer lifetime value. We believe DraftKings’ product and scale advantages will enable the company to maintain its leadership position in the years ahead.

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems, mission systems, and software. Its customers are Tier-1 defense contractors worldwide.
We believe Mercury is uniquely positioned to sell high-speed computing and storage subsystems to nearly all large U.S. defense contractors. Its products, which let customers more rapidly and cheaply develop their own solutions, are used for mission management, communications, sensors, electronic warfare, and other systems. Mercury serves an available market of over $40 billion, including $24 billion for C4I (command, control, communications, computers, and intelligence) systems and $18 billion for sensor and mission systems (electronic warfare, radar, and weapons).

Exact Sciences Corporation (EXAS) is a cancer diagnostics company whose flagship product is Cologuard Plus, a stool-based DNA colon cancer screening test.   
Exact Sciences is targeting an $18 billion annual revenue opportunity in its core Cologuard business. With 110 million Americans at risk for colon cancer, the market is vast. Cologuard is better at detecting pre-cancerous growths than blood-based screenings. Its long-term objective is to capture 40% market share with 40% adjusted EBITDA margins, or $7 billion in revenue and $2.8 billion of adjusted EBITDA. The company is developing tests for minimal residual disease and multi-cancer early detection with the goal of becoming a leader in cancer screening and diagnostics.

Kratos Defense & Security Solutions, Inc. (KTOS) develops and fields transformative, affordable technology, platforms, and systems for U.S. national security-related customers, allies, and commercial enterprises.
Kratos specializes in unmanned systems, satellite communications, cybersecurity/warfare, missile defense, training, and combat systems. Kratos’ unmanned systems/drone business offers technologically disruptive solutions that enable cost-effective upgrades of U.S. military technology. Within government services, the majority of revenue comes from high-growth spaces, including small jet engine, microwave electronics, and missile defense businesses. We expect growth to accelerate as Kratos wins key government contracts across the business due to its unique, low-cost offerings.

Karman Holdings Inc. (KRMN) is a best-in-class proprietary space and defense solutions provider formed through four key acquisitions by Dallas-based private equity firm Trive Capital. Over 85% of Karman's portfolio is sole source, with exposure to hypersonics, missile defense, and space launch markets.
Karman delivers highly complex, mission-critical products. Its ability to support customers throughout the full program lifecycle fosters deep integration and long-term relationships. As a differentiated, full-lifecycle outsourced solutions partner to original equipment manufacturers across the defense ecosystem, Karman is exposed to some of the fastest-growing segments of the defense budget.

Loar Holdings Inc.

Wynn Resorts, Limited (WYNN) is a leading casino company, with assets in Macau and Las Vegas, two of the largest gaming markets in the world. The company also owns the Encore Boston Harbor casino and is developing a new casino in the UAE, which it will manage while owning 40% of the resort.
In the short to medium term, we think several catalysts could drive the stock higher, including improving trends in Macau as the region recovers from the pandemic, continued strength in Las Vegas supported by Wynn's new convention space, and operational improvements at Encore Boston Harbor. Longer term, we think improved infrastructure and easing visa requirements should boost growth in Macau. All of these catalysts combined with the UAE development should lead to enhanced cash flow that Wynn can use to pay down debt and improve its financial position.

Montrose Environmental Group, Inc. (MEG) is an environmental services company that supports government and commercial organizations, with services ranging from air measurement and laboratory services to regulatory compliance, permitting, engineering, and remediation.
Montrose paused to demonstrate consistent organic growth before pursuing its strategy to consolidate the $1.3 trillion environmental services industry, which lacks a clear leader. Management expects high single-digit organic growth and believes the company can expand margins by 100 to 150 basis points annually. The secular backdrop is strong, driven by heightened attention to environmental issues, and the company maintains a clear ESG focus. There is optionality around additional contaminant regulations, such as monitoring PFAS chemicals in water and methane emissions.

Dynatrace Holdings LLC (DT) is a leading provider of application performance monitoring (APM), offering a full-stack solution including infrastructure and log management. It finalized transitioning its customers to a new updated platform in 2021.
With its new platform, the company can better address complex use cases of multi-cloud, containers, and hybrid environments. Public estimations suggest only 20% of enterprise applications are currently monitored, but that percentage could grow to 50% by 2023-2024. We believe that Dynatrace's customer base has 20% to 30% penetration, with a sophisticated G15K customer base. The completion of its transition to the new platform in 2021 is driving more attractive revenue growth, margins, and unlevered free cash flow that underpin an appealing stock setup.

Total