Baron Generational Growth Fund

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company providing property and casualty insurance, reinsurance, and mortgage insurance.
Arch is led by an experienced management team with a successful track record across insurance cycles. The company excels at underwriting specialized policies and can nimbly shift its business mix to target the most profitable lines as market conditions change. With only 2% share of a $1 trillion global commercial insurance market, Arch has significant runway for share gains. Management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility than peers.

MSCI Inc. (MSCI) provides investment decision support tools to global investment institutions.
We believe MSCI, the de facto standard for measuring global market performance, is positioned to benefit from the continuing development of emerging markets, passive investing, sustainability, and the growth of global financial assets. We believe the company's indexes remain the global standard for cross-border investing and will continue to be selected by institutions when issuing new mandates. MSCI’s index products, multi-asset portfolio tools, and risk analytics are mission-critical and deeply embedded in client workflows.

Kinsale Capital Group, Inc. (KNSL) is a property and casualty (P&C) insurer focused exclusively on the excess and surplus lines (E&S) market, which includes risks that are unique or difficult to place in the standard insurance market.
We believe Kinsale is a well-run insurer that should grow earnings and book value per share much faster than its peers. The company's focus on the attractive E&S market, underwriting discipline, and efficient technology platform enable it to rapidly grow premiums while delivering industry-leading underwriting margins. Management is highly regarded and has decades of experience in the E&S market. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

Choice Hotels International, Inc. (CHH) is one of the world's largest hotel franchisors, with brands in the economy, midscale, and upscale segments. Its contracts are long term, with many extending up to 20 years. Its brands include Quality Inn, Comfort Inn, Cambria Suites, Ascend, Radisson, and Everhome.
Choice Hotels has a strong franchise business with recurring revenue. The company has demonstrated consistent profitability across cycles by increasing room prices, improving occupancy and royalty rates, and driving new unit growth. Choice Hotels has a solid pipeline of new franchise contracts in revenue-intense segments and is actively expanding the number of upscale brands in its portfolio. The company recently increased its buyback program to 14% of its outstanding shares.

Red Rock Resorts, Inc. (RRR) owns and operates 20 local casinos in Las Vegas and is in the planning stages of developing and managing a tribal casino in California. The company also controls seven gaming-entitled sites consisting of almost 600 acres in Las Vegas and 30 acres in Reno.
Red Rock operates in the improving Las Vegas locals gaming market, which is now back to previous peak levels. We think the market is attractive, given favorable fundamentals including population growth 2.7 times the national average and $20 billion in projects either in the planning stages or under development. The market also offers the lowest tax rate in the U.S., with limitations on the development of new casinos in the region. Red Rock also has the option to develop or sell its owned acreage.

FactSet Research Systems Inc. (FDS) provides financial information to the global investment community.
FactSet serves only a small part of the addressable market, which we estimate at over $20 billion annually. The company offers broader datasets and more advanced portfolio analytics than peers and has a highly regarded customer service model. FactSet has also been expanding into the fixed income and wealth management markets. The company's products are sticky, leading to retention rates of over 95% and high visibility. FactSet generates robust free cash flow, which it has returned to shareholders via share repurchases and dividends.

Gartner, Inc. (IT) is the leading independent provider of research and advisory services for IT, HR, sales, finance, and marketing leaders.
Despite rising AI concerns, we believe Gartner remains well positioned as rapid technology change increases demand for trusted third-party research and advisory services. With less than 3% penetration of a $100B+ addressable market, retention around 100%, and strong free cash flow generation, Gartner has a long runway for growth. We expect consistent execution in Global Technology Sales, improvement in Global Business Sales, and disciplined share repurchases to support long-term value creation.

FIGS, Inc. (FIGS) is a fast-growing disruptor in global health care apparel industry. Founded in 2013, FIGS designs and sells scrubwear to health care professionals using a digitally native direct-to-consumer (DTC) strategy through both its website and growing store base. 
FIGS is disrupting the traditional health care apparel market through a combination of its strong brand, superior product and merchandising, and DTC business model. We see a long runway for growth as the company gains domestic share domestically and expands internationally. We also like FIGS’ strong margin profile, marked by high gross margins, low markdown and fashion risk, and an effective marketing strategy, which we believe can support mid- to high-teens EBITDA margins over time.

Primerica, Inc. (PRI) is a leading provider of term life insurance and investment products to middle income households in the U.S. and Canada.
As the responsibility for retirement savings increasingly shifts to individuals, Primerica serves a growing need for financial planning in the underserved middle income customer segment. Primerica has a variable-cost, multi-level distribution model that uniquely positions it to reach customers in a cost-efficient manner. The company is growing its sales force and increasing productivity, leading to higher sales and asset-based fees. Primerica generates significant excess capital, which is being returned to shareholders through share repurchases and dividends.

IDEXX Laboratories, Inc. (IDXX) is the leading provider of diagnostics to the veterinary industry.
IDEXX benefits from secular growth in pet-related spending driven by a strengthening human–animal bond, favorable demographics, increased use of diagnostics, and a greater focus on preventative care. Itss excellent execution has enabled the company to continue delivering robust performance. We believe IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations—such as InVue, MultiCue, and CancerDX—to be meaningful contributors to growth in the years ahead.