Baron Generational Growth Fund

MSCI Inc. (MSCI) is the leading provider of investment decision-support tools, offering equity indexes widely used by active and passive funds, risk and portfolio analytics, private markets data and analytics, and ESG and climate tools to the investment ecosystem worldwide.
MSCI Inc. (MSCI), the de facto standard for measuring global market performance, is, we believe, 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.

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company that provides property and casualty insurance, reinsurance, and mortgage insurance around the world.
Arch Capital Group Ltd. (ACGL) 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 a long runway for growth. Management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility than peers.

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.
Kinsale Capital Group, Inc. (KNSL) is, we believe, 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.

FIGS, Inc. (FIGS) is a direct-to-consumer health care apparel brand designing and selling scrubs and workwear for medical professionals, primarily online, while expanding into retail, international markets, and TEAMS, a business-to-business channel for health care organizations.
FIGS, Inc. (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 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.

Choice Hotels International, Inc. (CHH) is a leading hotel franchisor operating brands across the midscale, extended stay, and upscale segments, generating royalty fees and services revenue from a global system of franchised hotels weighted toward the value and mid-market traveler.
Choice Hotels International, Inc. (CHH) 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.

Gartner, Inc. (IT) is the leading independent provider of research and advisory services for IT, HR, sales, finance, and marketing leaders.
Gartner, Inc. (IT) is, we believe, positioned to generate sustained high-single-digit revenue growth as rapid technology change increases demand for trusted third-party research and advisory services. The company’s syndicated research platform is highly scalable, creating a path for consistent margin expansion as the company grows. Gartner is highly cash generative and is aggressively returning capital to shareholders. It has reduced its share count by 14% over the LTM, and can buy back the entire business over the next five years just using projected FCF.

FactSet Research Systems Inc. (FDS) is a leading provider of integrated financial data, analytics, and workflow solutions for investment professionals, combining proprietary and third-party data with research tools, portfolio analytics, and artificial intelligence applications on a subscription platform.
FactSet Research Systems Inc. (FDS) 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.

Red Rock Resorts, Inc. (RRR) is a leading owner and operator of casino resorts serving the Las Vegas locals market, operating properties under the Red Rock, Station, Palms, and related brands across the Las Vegas valley through its controlling interest in Station Casinos.
Red Rock Resorts, Inc. (RRR) 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.

Morningstar, Inc. (MORN) is an investment research provider offering data, research, and analytics to investors, advisors, and institutions through products such as Morningstar Direct, PitchBook private-markets data, credit ratings, and wealth and retirement solutions.
Morningstar, Inc. (MORN) has proprietary data, research, and embedded workflows that create meaningful barriers to entry and support recurring, scalable revenue. Its largely fixed-cost model should drive operating leverage as Morningstar Direct, PitchBook, and other platforms grow. Strong free cash flow and rising demand for investment data should support sustained revenue growth, margin expansion, and long-term earnings growth.

Guidewire Software, Inc. (GWRE) is the leading cloud-native software platform for the property and casualty insurance industry, providing core systems for policy, billing, and claims management to insurers globally, with accelerating cloud adoption among both regional and Tier 1 carriers.
Guidewire Software, Inc. (GWRE) is a best-in-class core system of record for P&C insurers, managing policies, claims, premiums, and payments across highly regulated workflows. We see a long runway as carriers modernize legacy systems, with the core opportunity approaching $20 billion of annual recurring revenue. AI should expand this opportunity through automation and intelligence layered on top of InsuranceSuite, while improving internal productivity. With the cloud migration largely complete, we expect accelerating revenue, margin expansion, and improving free cash flow.