Baron Discovery Fund

Exact Sciences Corporation (EXAS) is a molecular diagnostics company focused on cancer detection. Its flagship product is Cologuard Plus, a stool-based DNA colon cancer screening test.
Exact Sciences is targeting an $18 billion annual revenue opportunity in its core Cologuard business. With over 120 million Americans at risk for colon cancer, the market is vast. Cologuard is better at detecting pre-cancerous growths than blood-based screenings. Its long-term objective is to capture 40% market share with 40% adjusted EBITDA margins, or $7 billion in revenue and $2.8 billion of adjusted EBITDA. The company is developing tests for minimal residual disease and multi-cancer early detection with the goal of becoming a leader in cancer screening and diagnostics.

Liberty Media Corporation - Liberty Live (LLYVK) consists of Liberty Media Corporation's 30% interest in Live Nation Entertainment, Inc., the world's largest live entertainment company, producing, selling, and promoting concerts, and connecting brands to music.
Live Nation is the dominant player in an industry with solid long-term demand trends. The company has significant opportunities for capital reinvestment. Its investment in new owned and operated venues drives higher concert segment margins relative to shows held at third-party venues, largely due to Live Nation's control of the profitable food and beverage business. As Live Nation's mix shift to owned venues increases, we believe the resulting margin improvement will produce low double-digit growth in adjusted operating income over the long term.

Advanced Energy Industries, Inc. (AEIS) is a pure-play power conversion company that makes equipment to transform, refine, and modify electrical power from the grid into controllable, usable power for semiconductor, industrial, medical, data center, and telecom infrastructure applications.
Advanced Energy is a leader in power conversion and control, with strong market share driven by energy efficiency and power density in its core applications. The company remains well positioned in its legacy semiconductor market and is benefiting from a redesigned data center business focused on high-value, sole-source power solutions growing alongside AI infrastructure buildouts. Advanced Energy continues to see early signs of recovery in its industrial and medical markets, generate significant cash flow, and maintain an active acquisition pipeline.

Dynatrace, Inc. (DT) is a leading provider of application performance monitoring, offering a full-stack solution spanning user monitoring, infrastructure, and log management. To meet the demands of the modern software stack, the company re-architected its platform and expanded into security monitoring.
With its new platform, Dynatrace is better equipped to address complex use cases across multi-cloud, containerized, and hybrid environments. Estimates suggest only about 20% of enterprise applications are currently monitored, a figure expected to rise to 50% in the coming years. The growing application economy should drive greater monitoring demand as existing apps expand and new ones are developed. Dynatrace is well positioned to capture this opportunity through its differentiated platform, enterprise-grade solutions, expanding salesforce, and ongoing product innovation.

Loar Holdings Inc. (LOAR) is a niche aerospace components manufacturer. Founded in 2012, the company has an 85% proprietary product portfolio, with more than half of its revenue coming from the high-margin aftermarket channel.
Loar’s proprietary, aftermarket-focused products represent one of the strongest business models in the aerospace and defense industry, exemplified by the success of peers such as TransDigm. Loar benefits from favorable industry growth trends and strong pricing power given the critical nature of its components. The company has executed a disciplined acquisition strategy, successfully integrating more than 17 acquisitions over the past 13 years. We believe Loar is well positioned to deliver strong double-digit growth for the foreseeable future.

GitLab Inc. (GTLB) provides a software development and IT operations (DevOps) platform that developers, product managers, IT teams, and security professionals use to collaborate throughout the development lifecycle.
The $43 billion app development market is expanding as the number of projects and pace of development increase. GitLab is the only DevOps platform addressing all stages of the app lifecycle, using a single codebase and unified data model, which gives it a competitive advantage over point solutions. Its open-source model taps into 4,000 external developers, enabling GitLab to release upgrades faster than competitors. GitLab is in the early innings of monetizing its 40 million users. Its strong product velocity and return on investment drive good net expansion.

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems, mission systems, and software. The company's customers are Tier-1 defense contractors worldwide.
We believe Mercury is uniquely positioned to sell high-speed computing and storage subsystems to nearly all large U.S. defense contractors. Its products, which let customers more rapidly and cheaply develop their own solutions, are used for mission management, communications, sensors, electronic warfare, and other systems. Mercury serves an available market of over $40 billion, including $24 billion for C4I (command, control, communications, computers, and intelligence) systems and $18 billion for sensor and mission systems (electronic warfare, radar, and weapons).

Karman Holdings Inc. (KRMN) is a best-in-class proprietary space and defense solutions provider formed through four key acquisitions by Dallas-based private equity firm Trive Capital. Over 85% of Karman's portfolio is sole source, with exposure to hypersonics, missile defense, and space launch markets.
Karman delivers highly complex, mission-critical products. Its ability to support customers throughout the full program lifecycle fosters deep integration and long-term relationships. As a differentiated, full-lifecycle outsourced solutions partner to original equipment manufacturers across the defense ecosystem, Karman is exposed to some of the fastest-growing segments of the defense budget.

SentinelOne, Inc. (S) is a cybersecurity platform focused on agent-based endpoint protection (securing laptops, mobile devices, and virtual machines), cloud security (protecting containerized workloads at runtime), and security analytics.
SentinelOne was built with AI from inception to facilitate the protection of enterprises across endpoints, identities, and clouds and quickly detect anomalies and potential hacks. We believe it has a long runway for growth driven by 1) market share capture from legacy endpoint vendors struggling to compete against SentinelOne's AI-enabled platform, 2) an ongoing IT infrastructure shift to the cloud driving demand for cloud application protection, and 3) cybersecurity vendor consolidation favoring platforms with comprehensive security portfolios over point solutions. 

Alkami Technology Inc. (ALKT) is a cloud-based digital banking platform. Its multi-tenant software-as-a-service solution enables financial institutions to onboard and engage users, accelerate revenue growth, and improve operational efficiency.
We believe Alkami is well positioned to benefit from secular trends driving financial institutions to invest in and upgrade their technology, supported by its differentiated solution, highly rated user experience, and platform flexibility. The company operates in a large addressable market, and we see a multi-year runway for strong growth ahead.