Baron Capital US Small Cap Fund

Enpro Inc. (NPO) is a diverse industrial technology company whose proprietary, value-add products and solutions contribute key functionality to and/or safeguard a variety of critical environments across several end markets. Over half of revenue comes from sticky, aftermarket applications.
Enpro’s industrial businesses focus on high-margin, niche applications with recurring demand, supported by industry-leading brands. Its semiconductor businesses are similarly entrenched in specialized niches and are well-positioned to benefit from leading-edge investment and the reshoring of semiconductor production to the U.S. The company leverages strong free cash flow to acquire higher-growth businesses that can benefit from the Enpro platform, driving meaningful shareholder value creation over time.

Novanta Inc. (NOVT) is a supplier of core technology solutions and subsystems to medical and advanced industrial Original Equipment Manufacturers (OEMs). Key products include lasers and beam-steering devices, precision motors and drives, sensors, and medical insufflators and pumps.
Novanta’s portfolio of proprietary, mission-critical components supports long-term relationships with OEM customers. It is positioned to deliver mid- to high-single-digit organic growth, driven by secular trends including surgical robotics, minimally invasive surgery, and automation. A strong operating culture supports consistent gross margin expansion, while acquisitions remain a core element of the strategy and a primary use of capital. The company recently announced the largest acquisition in its history, which we believe will drive meaningful cost and revenue synergies.

Agilysys (AGYS) is a provider of POS (point of sale) and PMS (property management system) software for the hospitality industry (casinos/hotels/resorts/cruises/food service companies).
CEO Ramesh Srinivasan has significantly improved Agilysys by rebuilding and modernizing its core product in the cloud. The company is gaining traction in the marketplace and has substantial growth potential as it continues to win share from legacy incumbents, including homegrown systems and Oracle Micros solutions. Most notably, the company secured a major agreement with Marriott to deploy its PMS across a significant portion of its domestic hotel rooms—replacing a legacy in-house system.

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.

Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global property and casualty (P&C) insurance industry.
Guidewire is a small player in a vast addressable market and benefits from P&C insurers’ need to upgrade 30-year-old systems. The company offers best-in-class functionality, as evidenced by its growing installed base and near-100% retention rates. After a multi-year transition period, we think Guidewire’s cloud migration is largely complete, and we expect accelerating revenue, expanding margins, and improving free cash flow over the next several years. We believe recent M&A in the vertical software space supports a meaningful value creation opportunity for shareholders.

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.

Vertiv Holdings Co (VRT) is a leader in the design, manufacturing, and servicing of critical digital infrastructure across multiple end markets. They specialize in electrical and thermal management equipment and services, with one of the broadest product portfolios in the data center infrastructure industry.
As a leader in critical infrastructure solutions for data centers, Vertiv is driving industry innovation and positioned to exceed end-market growth due to its broad offering across electrical and thermal management products—enabling integrated, modular solutions and industry-leading service capabilities that competitors are unable to match. We expect Vertiv to leverage its healthy contribution margins and strong execution to drive profit growth and robust free cash flow generation, which can be deployed toward share buybacks or M&A to create additional value over time.

BillionToOne, Inc.

RadNet, Inc. (RDNT) is the leading U.S. provider of freestanding outpatient diagnostic imaging services and related IT solutions, based on the number of locations and annual imaging revenue, with 366 centers across key markets including Arizona, California, Delaware, New Jersey, New York, and Texas.
RadNet’s growth is driven by aging U.S. demographics, greater use of imaging in disease diagnosis and treatment, and the shift from inpatient imaging to lower-cost outpatient settings. The company builds leading positions in regional markets to leverage operational efficiencies through relationships with payors, radiology groups, and referring physicians. RadNet’s multi-modality strategy diversifies revenue streams and reduces reimbursement risk, while its AI capabilities enhance radiologic reads, supporting earlier disease detection and improving physician productivity.

Hinge Health, Inc.