Insights from Baron Capital Management's Latest 13F Filing
Ron Baron (Trades, Portfolio), the esteemed founder of Baron Capital Management and a seasoned investor known for his long-term growth strategy, has made notable changes to his portfolio in the third quarter of 2023. With a keen eye for small to mid-size growth companies, Baron's investment philosophy centers on identifying firms with strong potential and sustainable competitive advantages. His latest 13F filing reveals a series of strategic decisions, reflecting his commitment to a value-oriented purchase discipline and his indifference to short-term market volatility.
New Additions to the Portfolio
Ron Baron (Trades, Portfolio)'s recent 13F filing indicates the addition of 8 new stocks to his portfolio. Noteworthy acquisitions include:
- Fox Factory Holding Corp (FOXF, Financial), with 275,000 shares, making up 0.08% of the portfolio and valued at $27.25 million.
- SentinelOne Inc (S, Financial), comprising 1,735,000 shares, also representing 0.08% of the portfolio, with a total value of $29.25 million.
- TKO Group Holdings Inc (TKO, Financial), with 169,889 shares, accounting for 0.04% of the portfolio and a total value of $14.28 million.
Significant Position Increases
Baron's portfolio also reflects substantial increases in existing holdings, with the following stocks seeing the largest growth:
- On Holding AG (ONON, Financial), with an additional 2,145,318 shares, bringing the total to 3,028,002 shares. This represents a 243.04% increase in share count, a 0.17% impact on the current portfolio, and a total value of $84.24 million.
- Moderna Inc (MRNA, Financial), with an additional 418,269 shares, bringing the total to 426,869. This adjustment marks a staggering 4,863.59% increase in share count, with a total value of $44.09 million.
Complete Exits from Certain Holdings
The third quarter also saw Baron completely exit 19 positions, including:
- World Wrestling Entertainment Inc (WWE, Financial), where all 181,412 shares were sold, impacting the portfolio by -0.05%.
- Tenaris SA (TS, Financial), with the liquidation of all 470,067 shares, causing a -0.04% impact on the portfolio.
Key Position Reductions
Concurrently, Baron reduced his stakes in 124 stocks. The most significant reductions were:
- Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial), with a reduction of 1,073,460 shares, leading to a -29.46% decrease in shares and a -0.3% impact on the portfolio. The stock traded at an average price of $94.56 during the quarter and has seen a 6.82% return over the past 3 months and a 34.71% year-to-date return.
- ZoomInfo Technologies Inc (ZI, Financial), with a reduction of 2,110,236 shares, resulting in a -66.44% decrease in shares and a -0.15% impact on the portfolio. The stock's average trading price was $20.44 for the quarter, with a -28.16% return over the past 3 months and a -56.08% year-to-date return.
Portfolio Overview
As of the third quarter of 2023, Ron Baron (Trades, Portfolio)'s portfolio encompasses 335 stocks. The top holdings include 12.85% in Tesla Inc (TSLA, Financial), 4.92% in Arch Capital Group Ltd (ACGL, Financial), 4.65% in Gartner Inc (IT, Financial), 4.29% in CoStar Group Inc (CSGP, Financial), and 3.5% in FactSet Research Systems Inc (FDS, Financial). The investments are predominantly concentrated across 9 industries, including Consumer Cyclical, Financial Services, Technology, Healthcare, Real Estate, Industrials, Communication Services, Consumer Defensive, and Basic Materials.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
