Baron
Baron Small Cap Fund
US Small-cap
Dec 2024 → Sep 2026
Our archive holds 8 letters from this strategy, behind 21 investment theses and positions in 39 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.
Performance
as of Sep 30, 2026 · net of fees · USD · Institutional Shares
- YTD−4.3%index +10.7%
- 1Y−5.8%index +12.1%
- 3Y · /yr+6.8%index +17.6%
- 5Y · /yr−0.2%index +4.7%
- 10Y · /yr+9.6%index +9.9%
- Inception · /yr+9.5%index +6.9%
Index: Russell 2000 Growth Index
| YTD | 1Y | 3Yper year | 5Yper year | 10Yper year | Since inceptionper year | |
|---|---|---|---|---|---|---|
| Baron Small Cap Fund | −4.3% | −5.8% | +6.8% | −0.2% | +9.6% | +9.5% |
| Russell 2000 Growth Index | +10.7% | +12.1% | +17.6% | +4.7% | +9.9% | +6.9% |
Since inception: Since Inception (9/30/1997)
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
With an expected first quarter of 2027 close, and the stock trading close to its take-out value, we trimmed our position.
- New positionAccelevation Holdings Corp.Sep 2026
On the last day of the quarter, we participated in the IPO of Accelevation Holdings Corp.
The Fund’s largest sale was the full exit of The Cheesecake Factory Incorporated, which we first purchased in 2001 when it was a $1.3 billion company.
Wingstop Inc. was a previous successful investment that remains a best-in-class franchisor with stellar unit economics and long growth runway.
During the quarter, our largest sales were trims of some of our largest and best performing stocks (Vertiv Holdings Co, Legence Corp., The Cheesecake Factory Incorporated, and Cognex Corporation).
We trimmed these names to right size the positions and acknowledge expanded valuations.
During the quarter we initiated a position in Shake Shack Inc., a premium fast-casual burger chain, after the stock sold off almost 30% after its Q1 earnings call on a reported bad comp in April, and slightly lower fiscal year margin guidance from rising beef inflation.
We reallocated funds from Accelerant Holdings and PAR Technology Corporation to other ideas we like more.
- TrimmedLegence Corp.Jun 2026
We trimmed these names to right size the positions and acknowledge expanded valuations.
- ExitedAccelerant HoldingsJun 2026
We reallocated funds from Accelerant Holdings and PAR Technology Corporation to other ideas we like more.
During the quarter, our largest sales were trims of some of our largest and best performing stocks (Vertiv Holdings Co, Legence Corp., The Cheesecake Factory Incorporated, and Cognex Corporation).
- New positionBlackstone Digital Infrastructure Trust Inc.Jun 2026
We participated in the IPO of Blackstone Digital Infrastructure Trust Inc. , a newly listed Blackstone-sponsored vehicle focused on acquiring stabilized, fully leased data centers underpinned by long-term, non-cancellable leases to the world's largest hyperscalers in primary data center markets.
During the quarter, our largest sales were trims of some of our largest and best performing stocks ( Vertiv Holdings Co , Legence Corp. , The Cheesecake Factory Incorporated , and Cognex Corporation ).
Though we have trimmed our position along the way, we maintain a large position believing strongly in the future success of the company.
We acquired shares of Casella Waste Systems, Inc. , a well-entrenched market leader with high barriers to entry in an industry we understand well (after more than a decade owning Waste Connections, Inc. ) at what we believe is an attractive entry point.
- New positionApplied Aerospace & Defense, Inc.Jun 2026
Applied Aerospace & Defense, Inc. is a premier provider of mission-critical structures and components for the aerospace and defense industrial base.
We sold three positions during the quarter, with the largest disposal being Floor & Decor Holdings, Inc. as existing home sales, a key driver for flooring demand, remain weak and we favor other ways to play a future housing recovery.
We are investing again in this high-quality “fallen angel” at what we think is a meaningfully discounted valuation.
Also held
- JBT Marel Corporation
- Kinsale Capital Group, Inc.
- Gartner, Inc.
- Guidewire Software, Inc.
- Wingstop Inc.
- Vertiv Holdings Co
- Everforth, Inc.
- Intapp, Inc.
- Red Rock Resorts, Inc.
- indie Semiconductor, Inc.
- Neogen Corp.
- Legence Corp.
- Karman Holdings Inc.
- Hinge Health, Inc.
- Kratos Defense & Security Solutions, Inc.
- TransDigm Group Incorporated
- Andersen Group Inc.
- Enpro Inc.
- Planet Fitness, Inc.
- Madison Square Garden Sports Corp.
- SiteOne Landscape Supply, Inc.
- Novanta Inc.
- First Advantage Corporation
- The Baldwin Insurance Group, Inc.
- ICON plc
- Liberty Media Corporation - Liberty Formula One
- Exponent, Inc.
- Installed Building Products, Inc.
- Bright Horizons Family Solutions, Inc.
Its investment theses
- Neogen Corp.Sep 2026Neogen is a food and animal safety products provider whose 3M Food Safety integration and Petrifilm transition support durable, more profitable growth.
- Intapp, Inc.Sep 2026Intapp is a vertical software platform for professional services firms that can reach more than $1 billion in ARR by fiscal 2029 while expanding margins.
- Vertiv Holdings CoSep 2026Vertiv is a data center power and thermal management leader positioned for modular infrastructure, liquid cooling and DC architectures, with long-term upside from organic growth and margin expansion.
- Red Rock Resorts, Inc.Sep 2026Red Rock Resorts is a Las Vegas locals casino operator gaining share through property upgrades and new builds, with potential to more than double EBITDA and a trough valuation on depressed earnings.
- JBT Marel CorporationSep 2026JBT Marel supplies food processing equipment, and temporary Marel consolidation issues leave the stock extremely cheap versus 2026 estimates with synergy-driven margin upside.
- Accelevation Holdings Corp.Sep 2026Accelevation makes modular data center infrastructure and power products, with a $1.1 billion backlog, in-house installation and a valuation under 8 times 2027 EBITDA.
- Shake Shack Inc.Jun 2026Shake Shack Inc. is a premium fast-casual chain with strong unit economics, a long store runway, and attractive growth relative to valuation.
- Blackstone Digital Infrastructure Trust Inc.Jun 2026Blackstone Digital Infrastructure Trust Inc. targets stabilized data centers and offers attractive, visible returns supported by Blackstone’s sourcing edge and long-term leases.
- Vertiv Holdings CoJun 2026Vertiv Holdings Co supplies data-center power and cooling systems and is backed by strong growth, market-leading solutions, and attractive long-term financial targets.
- Applied Aerospace & Defense, Inc.Jun 2026Applied Aerospace & Defense, Inc. has an IP-rich, sole-source franchise with durable growth potential and expanding margins across attractive defense end markets.