Baron Capital US Small Cap Fund

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 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 $20B of annual recurring revenue (ARR). AI should expand this opportunity through automation and intelligence layered on top of InsuranceSuite, while also improving internal productivity. With the cloud migration largely complete, we expect accelerating revenue, margin expansion, and improving free cash flow.

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.

Karman Holdings Inc. (KRMN) designs and manufactures proprietary, mission-critical systems for space and defense applications. Formed by Trive Capital from four legacy businesses, it holds significant sole- or single-source positions across hypersonics, missile defense, and space launch.
Karman’s highly complex, mission-critical products and ability to support customers from design through production foster deep integration and long-term relationships. As a differentiated, full-lifecycle outsourced solutions partner to defense original equipment manufacturers, Karman is well positioned to benefit from rising investment in hypersonics, missile defense, and space launch.

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.

BillionToOne is a diagnostics company that is disrupting the market with more accurate prenatal and oncology genetic tests using its differentiated quantitative counting templates (QCT) technology. 
BillionToOne is capturing share with differentiated prenatal genetic tests, including a screening test for recessive single-gene disorders and for fetal antigen status, as well as a new diagnostic test that can replace amniocentesis to confirm a genetic diagnosis. Further, we think the company has differentiated oncology sequencing tests, including its SELECT therapy selection and RESPONSE therapy monitoring tests, as well as its upcoming tumor-naive MRD test. We think oncology will be an important future driver of growth. 

Casella Waste Systems, Inc. (CWST) is a vertically integrated waste management company serving the eastern U.S. It provides collection, transfer, disposal, recycling, organics, and resource management services to residential, commercial, municipal, institutional, and industrial customers.
Casella should benefit from recurring demand for waste services and tightening disposal capacity in the Northeast. Its vertically integrated network supports internalization, pricing, and operating efficiencies, while recycling risk-management programs reduce commodity exposure. We expect disciplined acquisitions in adjacent markets and continued investment in collection automation and landfill capacity to drive cash flow and earnings. Key risks include acquisition integration, permitting, leverage, and environmental liabilities.

ServiceTitan, Inc. (TTAN) is a leading cloud-based business management software platform designed for home and commercial contractors, including those specializing in plumbing, landscaping, electrical work, HVAC (heating, ventilation, and air conditioning), pest control, construction, and pool services.
We view ServiceTitan as a high-quality vertical software business with significant potential to lead its end market. The company operates in a large and expanding market that provides a long runway for durable growth. We believe ServiceTitan’s meaningful competitive advantages—including its comprehensive suite of tools, industry-specific focus, and scalable business model—position it to achieve substantial margin expansion in the coming years, making it an attractive long-term opportunity.

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.

Applied Aerospace & Defense, Inc.

Cognex Corporation (CGNX) provides machine vision systems, sensors, software, and barcode readers for factory and warehouse automation. Its products support inspection, identification, measurement, and quality control across industries including automotive, electronics, logistics, and life sciences.
Machine vision should benefit from rising automation, AI adoption, robotics, e-commerce fulfillment, and product traceability across manufacturing and logistics. Cognex’s leading market position, sustained R&D investment, deep engineering expertise, extensive patent portfolio, direct sales network, and global service capabilities create durable competitive advantages and support expansion into new applications and end markets.