Baron Discovery Strategy

Exact Sciences Corporation (EXAS) is a molecular diagnostics company focused on cancer detection. Its 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 over 120 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.

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.

Establishment Labs Holdings Inc. is a medical technology company that sells silicone gel-filled breast implants, marketed under the Motiva brand, in more than 80 countries.
Establishment Labs’ next-generation implants are designed to offer meaningful safety improvements and aesthetic benefits compared to competing products. Motiva implants are associated with significantly lower rates of capsular contracture, have no known cancer risk, and offer a more natural Ergonomix shape with a softer feel and the potential for smaller scars. The product continues to gain significant share across international markets, while the U.S. launch is now underway and progressing well, with early penetration of roughly 20% of the U.S. breast augmentation market.

Alkami Technology Inc. (ALKT) is a cloud-based digital banking platform. Its multi-tenant software-as-a-service solution enables financial institutions to onboard and engage users, accelerate revenue growth, and improve operational efficiency.
We believe Alkami is well positioned to benefit from secular trends driving financial institutions to invest in and upgrade their technology, supported by its differentiated solution, highly rated user experience, and platform flexibility. The company operates in a large addressable market, and we see a multi-year runway for strong growth ahead.

Loar Holdings Inc. (LOAR) is a niche aerospace components manufacturer. Founded in 2012, the company has an 85% proprietary product portfolio, with more than half of its revenue coming from the high-margin aftermarket channel.
Loar’s proprietary, aftermarket-focused products represent one of the strongest business models in the aerospace and defense industry, exemplified by the success of peers such as TransDigm. Loar benefits from favorable industry growth trends and strong pricing power given the critical nature of its components. The company has executed a disciplined acquisition strategy, successfully integrating more than 17 acquisitions over the past 13 years. We believe Loar is well positioned to deliver strong double-digit growth for the foreseeable future.

Dynatrace, Inc. (DT) is a leading provider of application performance monitoring, offering a full-stack solution spanning user monitoring, infrastructure, and log management. To meet the demands of the modern software stack, the company re-architected its platform and expanded into security monitoring.
With its new platform, Dynatrace is better equipped to address complex use cases across multi-cloud, containerized, and hybrid environments. Estimates suggest only about 20% of enterprise applications are currently monitored, a figure expected to rise to 50% in the coming years. The growing application economy should drive greater monitoring demand as existing apps expand and new ones are developed. Dynatrace is well positioned to capture this opportunity through its differentiated platform, enterprise-grade solutions, expanding salesforce, and ongoing product innovation.

Repligen Corporation (RGEN) is a tools supplier to the bioprocessing industry, offering a broad portfolio including upstream cell culture and downstream chromatography and filtration.
Repligen operates in attractive end markets, historically targeting monoclonal antibodies and now expanding into cell and gene therapies. It should benefit as more companies begin manufacturing biosimilar versions of biologic drugs once key patents expire, increasing demand for Repligen’s bioprocessing products. The company has also innovated within specialized niches, including by introducing novel filtration technologies and building out in-line process analytics capabilities, positioning it for sustained long-term growth.

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.

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems, mission systems, and software. The company's 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).

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