23
Morningstar FundInvestor
February 2
014
Morningstar Analyst Rating
01-31-14
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
§
Positive
Positive
Positive
Neutral
Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
19.55
19.60
15.17
13.56
14.45
11.52
7.12
13.20
10.90
9.72
9.08
7.23
Total Return %
-0.26
37.55
13.69
-6.16
25.43
61.80
-46.06
21.10
12.14
7.05
25.59
73.80
+/-S&P 500
3.20
5.16
-2.31
-8.27
10.37
35.34
-9.06
15.61
-3.65
2.14
14.71
45.12
+/-Russ MG
1.91
1.81
-2.12
-4.51
-0.95
15.51
-1.74
9.67
1.48
-5.05
10.11
31.09
Income Return %
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
-0.26
37.55
13.69
-6.16
25.43
61.80
-46.06
21.10
12.14
7.05
25.59
73.80
Total Rtn % Rank Cat
7
26
55
66
47
2
62
23
27
71
1
1
Income $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
1.20
0.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Expense Ratio %
.
1.37
1.39
1.41
1.44
1.50
1.42
1.42
1.45
1.50
1.50
1.50
Income Ratio %
.
-1.02
-1.16
-1.11
-1.08
-1.00
-0.79
-0.61
-0.26
-1.01
-1.25
-1.18
Turnover Rate %
.
70
89
65
76
68
61
46
67
84
.
90
Net Assets $mil
389
387
301
262
247
169
101
211
156
161
168
167
Performance
01-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
1.97 23.97 17.89 8.58 61.80
4.69 -8.13 15.16 13.24 25.43
7.06 1.10 -17.97 5.69 -6.16
16.89 -6.81
5.69 -1.24 13.69
8.83 4.30 11.85 8.34 37.55
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
MG
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
7.62 5.62
4.45
3 10,762
13.42 6.57
4.43
10 11,342
31.81 10.29
6.73
7 13,181
13.07 -0.86
-0.96
46 14,456
24.86 5.67
0.89
10 30,347
10.55 3.72
1.38
14 27,264
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.22
38
0.76
43
24.29
8
0.46
40
10.29
6
0.23
17
Potential Capital Gain Exposure: 35% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
31.81
3 Yr
13.07
Avg
Avg
5 Yr
24.86
High
Avg
10 Yr
10.55
+Avg
High
Incept
5.56
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Mid Growth TR
Alpha
-1.3
0.9
Beta
1.06
0.90
R-Squared
76
86
Standard Deviation
15.16
Mean
13.07
Sharpe Ratio
0.88
Morningstar’s Take
by Laura Lallos 01-31-14
Baron Opportunity demands a long-term perspective.
While there are several larger Baron funds in the
small- and mid-growth arena, this fund has not been
overshadowed. With an annualized 9.2% return since
manager Michael Lippert took over in March 2006, it
has outperformed the mid-growth category average
(6.3%) and the Russell Mid Cap Growth Index (7.6%). It
has also bested its older siblings over that period, and
drawn more assets over the past five years (though it
did see outflows last year).
In many ways, Lippert is a typical Baron manager.
He looks for companies with great long-term growth
prospects because of competitive advantages and
talented management. He is also valuation-minded, in
that he expects to buy low enough relative to future
intrinsic value that the price can double within five
years. However, he focuses on faster-growing,
more-innovative businesses, and this portfolio has a
higher stake in technology and averages higher price
multiples and growth rates than the other Baron funds
Morningstar follows (Baron Growth BGRFX, Baron
Small Cap BSCFX, and Baron Asset BARAX).
These features also distinguish the fund from the
mid-cap growth category. Its average market cap is
well below the norm, which worked to its advantage
in 2013. A still-small asset base has allowed Lippert to
maintain a significant stake in small-cap stocks while
holding a fairly concentrated portfolio of fewer than 60
names. The larger Baron funds hold closer to 100
stocks.
The fund’s more recent performance might give
investors pause. Its three-year return is middling, and
its 2013 showing, while competitive within the
mid-growth category, was not tops among its siblings.
The portfolio included some of the year’s hottest
names, such as Netflix NFLX and Zillow Z, but Lippert
added them mid-run, willing to pay up for companies
that he believes still have superior long-term
prospects.
Lippert says he is investing in the future and calls
this "an optimistic fund." His long-term record is
reason to give him the benefit of the doubt.
Address:
Baron Investment Funds Trust
New York, NY 10153
800-992-2766
Web Address:
Inception:
02-29-00
Advisor:
BAMCO Inc
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$2000
Add: $0 IRA: $2000
Min Auto Inv Plan:
$500
Add: $50
Sales Fees:
No-load,
Management Fee:
1.00%
Actual Fees:
Mgt:1.00% Dist:0.25%
Expense Projections:
3Yr:$434
5Yr:$750 10Yr:$1646
Income Distribution:
Annually
Data through January 31, 2014
Baron Opportunity Retail
Ticker
Status Yield Total Assets
Mstar Category
BIOPX Open
0.0% $498 mil
Mid-Cap Growth
90% 92% 87% 91% 97% 95% 97% 99%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 01-14
Historical Profile
Return
Risk
Rating
Above Avg
Above Avg
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
17.0
24.0
32.4
43.6
Portfolio Analysis
12-31-13
Share change since 09-13 Total Stocks:57 Sector
PE Tot Ret% % Assets
Illumina, Inc.
Hlth care
.
37.44 4.53
Gartner, Inc. Class A
Technology 37.2 -1.01 3.91
Acxiom Corporation
Technology 53.8 -2.76 3.32
Guidewire Software Inc
Technology
.
-3.79 3.21
Dreamworks Animation SKG Cnsmr Cyc
.
-4.96 2.94
DigitalGlobe Inc
Industrl
.
-7.22 2.88
Liberty Media Corporatio
Cnsmr Cyc 1.9 -10.03 2.87
SBA Communications Corp
Comm Svs
.
3.24 2.72
Shutterstock Inc
Industrl
57.1 -3.61 2.43
Discovery Communications
Cnsmr Cyc 26.7 -12.09 2.35
Priceline.com, Inc.
Cnsmr Cyc 33.0 -1.51 2.34
Verisk Analytics, Inc.
Industrl
30.6 -2.83 2.27
Citrix Systems, Inc.
Technology 32.5 -14.51 2.25
Ansys, Inc.
Technology 33.1 -9.94 2.24
Equinix, Inc.
Technology 106.4 4.37 2.17
Masimo Corporation
Hlth care 26.3 0.07 2.14
Berry Plastics Group Inc
Cnsmr Cyc 46.7 -6.26 2.12
Red Hat, Inc.
Technology 61.7 0.82 2.02
CoStar Group, Inc.
Real Est
.
-6.79 1.90
CarMax, Inc.
Cnsmr Cyc 20.6 -4.06 1.85
Current Investment Style
Market Cap %
Giant
0.0
Large
14.3
Mid
46.1
Small
35.9
Micro
3.7
Avg $mil:
5,539
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
30.68
4.67
4.44
16.69
0.11
1.58
1.70
2.63
1.66
0.12
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
18.17
14.90
12.32
18.51
18.53
1.28
1.53
1.60
1.38
0.72
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
14.09
5.33
9.18
0.83
0.72
0.91
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 32.89 1.14
BasicMat 1.46 0.48 2 0
CnsmrCyc25.17 2.93 25 14
FinanSvs 2.78 0.18 4 1
Real Est 3.48 2.38 4 2
Sensitive 57.94 1.33
CommSrvs 2.75 0.69 13 3
Energy 3.95 0.37 7 4
Industrl 13.99 1.23 21 14
Technlgy 37.25 2.12 39 32
Defensive 9.17 0.33
CnsmrDef 0.90 0.07 2 1
Hlthcare 8.27 0.70 9 7
Utilities 0.00 0.00 2 1
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
0.0
Stocks 99.2
Bonds 0.0
Other
0.8
Foreign 8.0
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2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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