Baron
Baron Discovery Fund
US Mid-cap Growth
Dec 2024 → Jun 2026
Our archive holds 8 letters from this strategy, behind 29 investment theses and positions in 28 companies. Every quote below is copied verbatim from the letter it came from.
8 letters in 3 years — follow all of Baron for every strategy.
What it bought and sold
We initiated a position in Rubrik, Inc. , a subscription software company focused on automating backup, storage, and recovery of corporate data, as well as creating resilience to cyberattacks on that data.
We initiated a new position in Samsara Inc.
This caused significant upward share price movement, and we trimmed our investment based upon shares nearing our long- term valuation targets.
We thought that at their lowest levels of $11 to $12 last summer, CareDx shares were pricing in a worst-case scenario, and we meaningfully increased our position at those levels.
Top net sales for the quarter Year Acquired Market Cap When Acquired ($B) Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Establishment Labs Holdings Inc. 2022 1.9 2.5 40.1 Advanced Energy Industries, Inc. 2019 2.6 14.2 34.9 Birkenstock Holding plc 2025 9.6 8.1 32.7 SiTime Corporation 2023 2.3 19.7 27.6 Alkami Technology Inc. 2021 3.6 1.8 27.3
In the quarter we sold about 60% of our investment at $375, on the back of excitement about the growth in AI data center buildouts.
While we remain long-term believers in the brand, we exited our position in Birkenstock Holding plc in order to raise capital for new ideas that we felt had higher return potential.
During the quarter, we reinitiated a position in Advanced Drainage Systems, Inc. (ADS), the leading U.S. manufacturer of stormwater and onsite wastewater management products.
We remain investors and used recent weakness to add to our position.
During the quarter we purchased Shake Shack Inc. , a premium fast-casual burger chain.
During the quarter, we purchased Shake Shack Inc., a premium fast-casual burger chain.
Also held
Its investment theses
- Advanced Drainage Systems, Inc.Jun 2026Advanced Drainage Systems, Inc. is a dominant stormwater and wastewater products maker with cost advantages, secular tailwinds, and attractive valuation.
- Samsara Inc.Jun 2026Samsara Inc. offers fleet and industrial operations software with a strong data moat, long growth runway, and improving operating leverage.
- Karman Holdings Inc.Jun 2026Karman Holdings Inc. makes mission-critical missile and space systems and is positioned to grow well above peers on proprietary content and multi-year defense demand.
- Shake Shack Inc.Jun 2026Shake Shack Inc. is a premium burger chain with a differentiated brand, strong unit economics, and long runway for expansion.
- Forgent Power Solutions, Inc.Jun 2026Forgent Power Solutions, Inc. supplies engineered-to-order electrical distribution equipment and is positioned for multi-year growth and margin expansion from AI infrastructure and grid buildout.
- SiTime CorporationJun 2026SiTime Corporation designs MEMS-based timing solutions and is expected to keep growing rapidly as its unique products gain share and benefit from AI-related data center demand.
- Forgent Power Solutions, Inc.Jun 2026Forgent Power Solutions, Inc. makes customized electrical distribution equipment and should benefit from AI infrastructure and grid buildout with strong growth and margin expansion ahead.
- Rubrik, Inc.Jun 2026Rubrik, Inc. provides subscription software for data backup and cyber resilience and was viewed as attractively valued with strong free cash flow growth and a competitive advantage.
- Dynatrace, Inc.Mar 2026Dynatrace is a leading observability software platform built on internal AI with deep enterprise integration, strong ROI, and an attractive valuation with mid-teens free cash flow growth.
- Enpro Inc.Mar 2026Enpro is a diversified industrial technology company with recurring aftermarket revenue, strong brands, and secular semiconductor tailwinds supporting growth, margin expansion, and valuation upside.