Baron
Baron Discovery Fund
US Mid-cap Growth
Dec 2024 → Jun 2026
Our archive holds 7 letters from this strategy, behind 26 investment theses and positions in 28 companies. Every quote below is copied verbatim from the letter it came from.
7 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.
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
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.
This caused significant upward share price movement, and we trimmed our investment based upon shares nearing our long-term valuation targets.
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 initiated a new position in Samsara Inc.
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.
During the quarter we purchased Shake Shack Inc. , a premium fast-casual burger chain.
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.
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.
- 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.
- Waystar Holding Corp.Mar 2026Waystar provides AI-driven healthcare revenue cycle software that reduces client costs and appears attractively valued with low-teens cash flow growth.
- Advanced Energy Industries, Inc.Mar 2026Advanced Energy Industries designs power conversion products with AI-driven data center tailwinds, new semi offerings, and multi-year growth and margin expansion potential.
- ServiceTitan, Inc.Mar 2026ServiceTitan is a vertical software platform for trades with deep domain data and workflow automation that create strong switching costs.