Baron Discovery Strategy

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.

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).

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.

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.

Establishment Labs Holdings Inc. is a medical technology company that sells silicone gel-filled breast implants, marketed under the Motiva brand, in more than 80 countries.
Establishment Labs’ next-generation implants are designed to offer meaningful safety improvements and aesthetic benefits compared to competing products. Motiva implants are associated with significantly lower rates of capsular contracture, have no known cancer risk, and offer a more natural Ergonomix shape with a softer feel and the potential for smaller scars. The product continues to gain significant share across international markets, while the U.S. launch is now underway and progressing well, with early penetration of roughly 20% of the U.S. breast augmentation market.

CareDx, Inc. (CDNA) is a diagnostic company that uses next-generation sequencing to accurately map the complex characteristics of transplant patients to ensure proper organ matches pre-transplant and to monitor for rejection and optimize proper post-transplant immunosuppression drug regimens.
CareDx is the leader in transplant diagnostics, with presence in nearly all U.S. and EU centers. Its current growth is driven by AlloSure, a test for kidney transplants, which represents a $2 billion market. Overall, CareDx addresses a $7 billion market and has the potential to reach $12 billion with new products.

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.

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.

Waystar Holding Corp.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in North America. Through its large branch network, the company offers a broad selection of products across irrigation, agronomics, hardscapes, and nursery to landscaping professionals.
While SiteOne is over three times the size of its closest competitor, it has only high-teens share of a highly fragmented market. It has significant opportunity to further consolidate the industry through accretive acquisitions, driven by an experienced management team with a strong M&A track record. With the company’s renewed focus on execution and improving underperforming branches, we expect margin expansion to accelerate in the coming years. It is also investing in technology and productivity initiatives to enhance the customer experience and improve sales efficiency.