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.

Forgent Power Solutions, Inc.

CareDx, Inc. (CDNA) develops and provides diagnostic tests for the organ transplant community to monitor for rejection and optimize 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 Kidney, which tests for signs of transplant rejection, and an increasing number of centers that are adopting surveillance protocols. Overall, CareDx addresses a $7 billion market and has the potential to reach $12 billion with new products.

Heartflow, Inc.

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.

SiTime Corporation (SITM) is a fabless semiconductor company that designs and sells MEMS (microelectromechanical systems) based timing solutions across industries including consumer, communications, data center, automotive, and industrial. 
Timing circuits are key to the function of electronic devices despite their relatively low cost. MEMS solutions offer several benefits over incumbent quartz-based solutions. With over 80% share of MEMS solutions, SiTime focuses on the highest end applications. It commands premium pricing and is generally sole sourced, selling to customers who value its products' differentiation and capabilities. It expects its market to grow from $1 billion in 2021 to $4 billion in 2024 through new products and market growth, targeting a 30% CAGR in revenue and top-tier margins.  

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.

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.

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.

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.