Baron Mid-Cap Growth Strategy
Objective & Strategy
The investment goal of Baron Mid-Cap Growth Strategy is capital appreciation.
Baron Mid-Cap Growth Strategy Capital is diversified and invests for the long term mainly in superior quality, medium-sized U.S. growth companies of $1.5 - $12 billion market capitalization and with a minimum expected return of 100% within four years.
Strategy Description
Baron Mid-Cap Growth Strategy invests primarily in mid-sized growth companies.
Strategy Facts
| Inception Date | June 30, 1998 |
|---|---|
| Total Strategy Assets | $2.36 billion |
Risk/Return Comparison
Specific risks associated with medium-sized companies include that the securities may be thinly traded and more difficult to sell during market downturns.
For strategy reporting purposes, the Firm is defined as all accounts managed by Baron Capital Management, Inc. ("BCM") and BAMCO, Inc. ("BAMCO"), registered investment advisers wholly owned by Baron Capital Group, Inc. The strategy is a time-weighted, total return strategy of all mid-cap accounts greater than $1 million as of quarter-end managed using our standard investment process. Since 2010, accounts in the strategy are market-value weighted and are included on the first day of the month following one full month under management. Prior to 2010, accounts were included on the first day of the quarter after one full quarter. Gross performance figures do not reflect the deduction of investment advisory fees and any other expenses incurred in the management of the investment advisory account. A full description of investment advisory fees is supplied in our Form ADV Part II. Valuations and returns are computed and stated in U.S. dollars. Performance figures reflect the reinvestment of dividends and other earnings. The strategy is currently composed of one Baron mutual fund managed by BAMCO and separately managed accounts managed by BCM.
BAMCO and BCM claim compliance with the Global Investment Performance Standards ("GIPS"). To receive a complete list and description of the Firm’s strategies or a GIPS compliant presentation, please contact us at 1-800-99BARON.
Performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future results.
The performance of accounts in the strategy may be materially different at any given time. Differences that may affect investment performance include cash flows, inception dates, and historical prices. Positions may not be the same or may be traded at different times. In addition, accounts in the strategy may be pursuing similar investment strategies, but may have different investment restrictions.
Specific risks associated with medium-sized companies include that the securities may be thinly traded and more difficult to sell during market downturns.
The Risk/Return Comparison plots the since inception return of the Strategy against the Strategy's Standard Deviation for the same time period. Source: FactSet SPAR.
Sector and sub-industry weights, top ten holdings and portfolio characteristics are based on a representative account. Such data may vary for each client in the strategy due to asset size, market conditions, client guidelines and diversity of portfolio holdings. The representative account is the account in the strategy that we believe most closely reflects the current portfolio management style for this strategy. Representative account data is supplemental information.
Industry sector or sub-industry group levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”), unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties.
Source: FactSet SPAR. Based on the gross performance results of the strategy.
Definitions: The indexes are unmanaged. The Russell Midcap™ Growth Index measures the performance of medium-sized U.S. companies that are classified as growth, and the S&P 500 Index of 500 widely held large-cap U.S. companies. The indexes and the strategy are with dividends, which positively impact the performance results. Standard Deviation: measures the degree to which the strategy’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater the strategy’s volatility (risk). Sharpe Ratio: is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better the strategy’s risk adjusted performance. Alpha: measures the difference between the strategy’s actual returns and its expected performance, given its level of risk as measured by beta. Beta: measures the strategy’s sensitivity to market movements. The beta of the market (Russell Midcap Growth) is 1.00 by definition. R-Squared: measures how closely the strategy’s performance correlates to the performance of the benchmark index (Russell Midcap Growth Index), and thus is a measurement of what portion of its performance can be explained by the performance of the index. Values for R-Squared range from 0 to 100, where 0 indicates no correlation and 100 indicates perfect correlation. Tracking Error: measures how closely the strategy’s return follows the benchmark index returns (Russell Midcap Growth Index). It is calculated as the annualized standard deviation of the difference between the strategy and the index returns. Information Ratio: measures the excess return of the strategy divided by the amount of risk the strategy takes relative to the benchmark index (Russell Midcap Growth Index). The higher the information ratio, the higher the excess return expected of the strategy, given the amount of risk involved. Upside Capture: explains how well the strategy performs in time periods where the benchmark’s returns (Russell Midcap Growth Index) are greater than zero. Downside Capture: explains how well the strategy performs in time periods where the benchmark’s returns (Russell Midcap Growth Index) are less than zero. EPS Growth Rate (3-5 year forecast): indicates the long-term forecasted EPS growth of the companies in the representative account, calculated using the weighted average of the available 3-to-5 year forecasted growth rates for each of the stocks in the representative account provided by FactSet Estimates. The EPS Growth rate does not forecast the strategy’s performance. Price/Earnings Ratio (trailing 12-months): is a valuation ratio of a company’s current share price compared to its actual earnings per share over the last twelve months. Price/Book Ratio: is a ratio used to compare a company’s stock price to its tangible assets, and it is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. Price/Sales Ratio: is a valuation ratio of a stock’s price relative to its past performance. It represents the amount an investor is willing to pay for a dollar generated from a particular company’s operations. Price/Sales is calculated by dividing a stock’s current price by its revenue per share for the last 12 months. Weighted Harmonic Average: is a calculation that reduces the impact of extreme observations on the aggregate calculation by weighting them based on their size in the representative account. This information does not constitute an offer to sell or a solicitation of any offer to buy securities by anyone in any jurisdiction where it would be unlawful under the laws of that jurisdiction to make such offer or solicitation.