4 / 5 Stars
5 4 5 2 4
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#23 in Mid-Cap Growth
U.S. News evaluated 221 Mid-Cap Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 22.23 percent over the past year, 14.31 percent over the past three years, 24.04 percent over the past five years, and 9.77 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||0.2%|
|3 Years (Annualized)||14.3%|
|5 Years (Annualized)||24.0%|
|10 Years (Annualized)||9.8%|
Baron Growth boasts top-notch long-term results.
As of April 22, 2014, the fund has assets totaling almost $8.45 billion invested in 104 different holdings. Its portfolio consists of shares of small and mid-sized companies.
Compared to its peers in Morningstar's mid-cap growth category, this fund depends heavily on smaller companies. As of the end of the second quarter, more than 30 percent of the fund's portfolio was invested in small- and micro-cap names. The fund's average market cap is less than half that of the average for its Morningstar category. Lately, the fund's energy picks, including Core Laboratories and Carbo Ceramics, have been strong contributors to performance. The fund has returned 22.23 percent over the past year and 14.31 percent over the past three years.
The fund has top-notch long-term numbers. However, much of that comes from the fund's performance between 2001 and 2004. It finished three of those four years in the top 10 percent of its Morningstar category. In 2001, for instance, it beat the broader market by nearly 25 percentage points. Since then, however, the fund has slowed down quite a bit. Overall, though, its diversified, low-turnover approach has paid off. The fund has returned 24.04 percent over the past five years and 9.77 percent over the past decade.
According to the fund's prospectus: "The Adviser selects securities that it believes have favorable price-to-value characteristics, are well managed, have significant long term growth prospects and have significant barriers to competition. ... Because of its long-term approach, the Fund could have a significant percentage of its as sets invested in securities that have appreciated beyond their original market cap ranges."
Role in Portfolio
Morningstar calls the fund a "supporting player."
Ronald Baron manages the fund.
Baron Growth Fund has an expense ratio of 1.30 percent.
Like all stock funds, this one comes with some risks.