Baron Durable Advantage Fund
Symbol BDAFXCUSIP: 068278779
Symbol BDAFXCUSIP: 068278779
L
Large-Cap GrowthNav
$28.11
Daily Change $1.14 (4.23%)
As of 05/12/2025
As of 05/12/2025
Net Assets
$446.26 M
As of 03/31/2025
Morningstar Rating™
As of 03/31/2025
Inception date
12/29/2017
Portfolio Management
Alex Umansky
VP, Portfolio Manager
Helpful Resources
Overview
Portfolio manager Alex Umansky invests in high-quality compounders. He focuses on identifying large-cap companies with durable competitive advantages and earning high returns on invested capital, but which are no longer able to reinvest all of it back into their businesses. This Fund has a lower growth profile than Baron Fifth Avenue Growth Fund.
For the period ended 3/31/2025, the Baron Durable Advantage Fund received a 5-Star Overall Morningstar Rating™, 5-Star 3-Year Rating, and 5-Star 5-Year Rating. The Morningstar Ratings are based on the Morningstar Risk-Adjusted Return measures of 1027, 1027, and 949 funds in the category, respectively. This Morningstar Rating is for the Retail share class only; other classes may have different performance characteristics.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Morningstar classifies funds as being large-cap, mid-cap, or small-cap based on the market capitalization of the fund’s stock holdings; and as value, blend, or growth based on the value-growth orientation of the stock holdings. The nine possible combinations of these characteristics correspond to the nine squares of the Morningstar Style Box–size is displayed along the vertical axis and style is displayed along the horizontal axis. Please note that the style boxes indicate the Fund’s equity style, not necessarily its Morningstar Category.
The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
© 2025 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its affiliates or content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind, whether investment, tax, legal or otherwise. User is solely responsible for ensuring that any use of this information complies with all laws, regulations and restrictions applicable to it. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
MORNINGSTAR IS NOT RESPONSIBLE FOR ANY DELETION, DAMAGE, LOSS OR FAILURE TO STORE ANY PRODUCT OUTPUT, COMPANY CONTENT OR OTHER CONTENT.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Morningstar classifies funds as being large-cap, mid-cap, or small-cap based on the market capitalization of the fund’s stock holdings; and as value, blend, or growth based on the value-growth orientation of the stock holdings. The nine possible combinations of these characteristics correspond to the nine squares of the Morningstar Style Box–size is displayed along the vertical axis and style is displayed along the horizontal axis. Please note that the style boxes indicate the Fund’s equity style, not necessarily its Morningstar Category.
The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
© 2025 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its affiliates or content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind, whether investment, tax, legal or otherwise. User is solely responsible for ensuring that any use of this information complies with all laws, regulations and restrictions applicable to it. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
MORNINGSTAR IS NOT RESPONSIBLE FOR ANY DELETION, DAMAGE, LOSS OR FAILURE TO STORE ANY PRODUCT OUTPUT, COMPANY CONTENT OR OTHER CONTENT.
Prices & Performance
PricesAs of 05/12/2025
| NAV | Daily Change ($) | Daily Change (%) | MTD | QTD | YTD |
|---|---|---|---|---|---|
| $28.11 | $1.14 | 4.23% | 8.28% | 7.13% | -0.46% |
| NAV | $28.11 |
|---|---|
| Daily Change ($) | $1.14 |
| Daily Change (%) | 4.23% |
| MTD | 8.28% |
| QTD | 7.13% |
| YTD | -0.46% |
PerformanceAs of 03/31/2025
| Portfolio or Index | QTD1 | YTD1 | 1 Year | 3 Years | 5 Years | Since Inception 12/29/2017 |
|---|---|---|---|---|---|---|
| BDAFX - Baron Durable Advantage Fund | -7.08% | -7.08% | 6.37% | 12.71% | 19.32% | 14.36% |
| S&P 500 Index | -4.27% | -4.27% | 8.25% | 9.06% | 18.59% | 12.65% |
1 Not annualized.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost. The Adviser waives and/or reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2035, unless renewed for another 11-year term and the Fund's transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, visit BaronCapitalGroup.com or call 1-800-99-BARON.
Performance InformationAs of 03/31/2025
| Performance statistics | 3 Years | 5 Years | Since Inception |
|---|---|---|---|
| Standard Deviation (%) | 18.73 | 18.39 | 17.85 |
| Sharpe Ratio | 0.44 | 0.90 | 0.67 |
| Alpha (%) | 3.22 | 0.10 | 1.63 |
| Beta | 1.04 | 1.04 | 1.00 |
| R-Squared (%) | 91.92 | 91.76 | 92.23 |
| Tracking Error (%) | 5.36 | 5.33 | 4.98 |
| Information Ratio | 0.68 | 0.14 | 0.34 |
| Upside Capture (%) | 111.61 | 106.73 | 104.21 |
| Downside Capture (%) | 100.43 | 109.36 | 98.77 |
Source: FactSet SPAR. Except for Standard Deviation and Sharpe Ratio, the performance based characteristics above were calculated relative to the Fund's benchmark.
Risk & Return03/31/2022 - 03/31/2025
Chart
Scatter chart with 2 data series.
The chart has 1 X axis displaying Risk (%). Data ranges from 17.31 to 18.73.
The chart has 1 Y axis displaying Return (%). Data ranges from 9.06 to 12.71.
End of interactive chart.
1 Source: FactSet SPAR.
Portfolio Holdings & Characteristics
HoldingsAs of 04/30/2025
| Holding | Sector | % of Net Assets | |
|---|---|---|---|
Meta Platforms, Inc. Meta Platforms, Inc. (META) owns Facebook, the world's largest social network, with over 3.0 billion monthly and over 2.1 billion daily active users. Instagram, Messenger, WhatsApp, and Oculus are also part of the Meta Platforms network, with over 3.3 billion total daily unique users across Meta products. Meta owns unique social platforms with users that continue to demonstrate stickiness and high engagement. Advertisers want to be where users are, and Meta's ability to analyze, target, and show clear, demonstrable, and rising returns on investment makes the platform particularly attractive to them. We believe the company has significant room to further monetize its vast customer base, especially internationally. In addition, we see significant positive optionality from monetization opportunities in generative AI features, video, WhatsApp, and business messaging. | Communication Services | 7.2% | |
Amazon.com, Inc. Amazon.com, Inc. (AMZN) is an e-commerce pioneer, innovator, and market share leader with a relentless focus on providing value and convenience to its customers. Amazon also operates the industry-leading cloud infrastructure business Amazon Web Services (AWS). Amazon's market share of U.S. online retail sales is around 40%, while its share of global retail sales is less than 5%. Amazon has many avenues for revenue growth, including consumer staples, international expansion, digital media offerings, private label, pharmacy and healthcare services, advertising, and a better shopping experience powered by generative AI. Amazon also represents an opportunity to invest in the secular growth of cloud computing through AWS, a large, growing, margin-accretive part of the business. | Consumer Discretionary | 6.8% | |
NVIDIA Corporation NVIDIA Corporation (NVDA) sells semiconductors, systems, and software for accelerated computing, gaming, and generative AI. Computing demand has been doubling every one to two years, driven by electrification, digitization, and recent advancements in AI, yet supply growth has decelerated dramatically due to the slowdown in Moore's law. NVIDIA’s accelerated computing architecture enables continued growth in supply of computing through parallelization. We are at the tipping point of a new era in computing, with NVIDIA at its epicenter as generative AI adoption grows. Given its leading market share in gaming, data centers, and autonomous machines, we believe NVIDIA can grow rapidly for years to come. | Information Technology | 5.7% | |
Microsoft Corporation Microsoft Corporation (MSFT) is a software company traditionally known for its Windows and Office products. Over the last five years, it has built a $120 billion-plus annual cloud business, including Office 365, CRM product Dynamics 365, and infrastructure-as-a-service product Azure. Over the past decade, Microsoft has transformed itself, refocusing the business on cloud computing and AI. Microsoft's commercial cloud business now represents over 56% of revenue and is growing around 25% year-on-year. Its moat is built on the wide reach of its sales channel, diverse platform of software offerings, hybrid cloud capabilities, and the high costs of switching away from its solutions, which tend to be mission critical for customers. We believe Microsoft will benefit from the growing adoption of cloud for years to come. | Information Technology | 5.0% | |
Visa Inc. Visa Inc. (V) is a leading global payment network. The company authorizes and facilitates electronic payments for consumers, merchants, and banks. Visa benefits from consumer spending growth and the secular shift from cash to electronic payments. Most of its revenue comes from international markets, where consumer spending and the adoption rate of electronic payments are rising quickly. The company generates significant free cash flow, which is being returned to shareholders through dividends and share repurchases. We believe Visa enjoys high barriers to entry given its well-established brand, ubiquitous merchant acceptance network, and extensive banking relationships. | Financials | 4.9% | |
Broadcom Inc. Broadcom Inc. (AVGO) designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. Its semiconductor devices serve broadband, networking, wireless, storage, and industrial markets, while its software offerings focus on operational efficiency tools for large enterprises. Broadcom’s semiconductor portfolio is reaching an inflection point, driven by its AI solutions in networking and custom compute. We expect Broadcom to tap into most of the $75 billion serviceable addressable market in AI across its three largest customers by 2027 and to grow VMware at a high-teens rate over the next few years. The rest of Broadcom’s semiconductor business is recovering, and we expect other software segments to grow at a mid-single-digit rate. The company has best-in-class margins and cash flow, which it returns to shareholders. | Information Technology | 4.5% | |
S&P Global Inc. S&P Global Inc. (SPGI) provides credit ratings, indexes, data, and analytics to the financial, transportation, and commodities markets. S&P Global benefits from the secular growth of rated bond issuance, the ongoing shift from active to passive investing, and growing demand for data and analytics. The company operates in oligopoly markets, where it enjoys formidable competitive advantages. We expect to see a recovery in rated bond issuance as interest rates stabilize, alongside ongoing benefits from S&P Global’s 2022 merger with IHS Markit. Excess cash flow is being used for accretive acquisitions and is being returned to shareholders through share repurchases and dividends. | Financials | 4.4% | |
Taiwan Semiconductor Manufacturing Company Limited Taiwan Semiconductor Manufacturing Company Limited (2330.TT), known as TSMC, is the world's largest independent semiconductor foundry, manufacturing chips on behalf of other companies. TSMC is the dominant force in leading-edge semiconductor foundry manufacturing, as it benefits from economies of scale and a superior cost structure. Its successful track record of deploying new technology faster than competitors enables it to maintain its market share and pricing power. We believe TSMC’s investments in advanced nodes will solidify its superior market positioning and profitability in the long run. | Information Technology | 4.4% | |
Alphabet Inc. Alphabet Inc. (GOOGL) is the parent of Google, the world's most dominant online search provider. Other services and products include display advertising, Android, Chrome, Google Cloud, Google Maps, Google Play, and YouTube. Its Other Bets segment consists of businesses such as Waymo, CapitalG, and Verily. Alphabet has been the largest beneficiary of a secular shift in advertising from all other media to online and mobile. Alphabet has processed and indexed more data than any other company and can leverage its large datasets to quickly improve its products and enter adjacent markets. Subsidiaries Google Cloud and YouTube give Alphabet exposure to the secular shifts to cloud computing and connected TV. Alphabet has tremendous scale, distribution, and talent. We are monitoring how generative AI could disrupt or offer new opportunities for the core search business. | Communication Services | 4.0% | |
Apollo Global Management, Inc. Apollo Global Management, Inc. (APO) is one of the world's leading alternative asset managers. The company manages over $700 billion in assets, mostly in credit strategies. It also owns Athene, one of the largest providers of annuities in the U.S. Apollo has a dominant franchise in private credit, where it has spearheaded the practice of matching insurance liabilities with investment-grade, illiquid credit investments to generate higher returns than peers. We think Apollo will continue to grow in credit and insurance, where it has significant scale and expertise. The company should also see growth in assets, fees, and spread earnings, since it earns management fees on assets as well as excess spread on liabilities following its 2022 merger with Athene. | Financials | 3.5% | |
Total | 50.6% |
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Contributors / DetractorsQuarterly as of 03/31/2025
| Top Contributors | Average Weight | Contribution |
|---|---|---|
| Visa Inc. | 4.33% | 0.38% |
| HEICO Corporation | 2.54% | 0.32% |
| Welltower Inc. | 1.22% | 0.21% |
| TransDigm Group Incorporated | 2.15% | 0.18% |
| CoStar Group, Inc. | 1.94% | 0.18% |
Source: FactSet PA.
GICS Sector BreakdownAs of 04/30/2025
Chart
Pie chart with 9 slices.
End of interactive chart.
Sector
Financials
35.2%
Information Technology
26.9%
Communication Services
11.2%
Consumer Discretionary
8.6%
Health Care
6.4%
Industrials
5.5%
Real Estate
4.2%
Consumer Staples
1.4%
Cash & Cash Equivalents
0.7%
Sub-Industry
04/30/2025Semiconductors17.90%
Financial Exchanges & Data12.40%
Interactive Media & Services11.20%
Transaction & Payment Processing Services 8.00%
Broadline Retail 6.80%
Asset Management & Custody Banks6.00%
Aerospace & Defense5.50%
Life Sciences Tools & Services5.00%
Systems Software5.00%
Diversified Financial Services 3.50%
Investment Banking & Brokerage3.50%
Application Software2.90%
Health Care REITs 2.10%
Real Estate Services 2.10%
Property & Casualty Insurance1.80%
0369121518
Semiconductors17.90%
Financial Exchanges & Data12.40%
Interactive Media & Services11.20%
Transaction & Payment Processing Services 8.00%
Broadline Retail 6.80%
Asset Management & Custody Banks6.00%
Aerospace & Defense5.50%
Life Sciences Tools & Services5.00%
Systems Software5.00%
Diversified Financial Services 3.50%
Investment Banking & Brokerage3.50%
Application Software2.90%
Health Care REITs 2.10%
Real Estate Services 2.10%
Property & Casualty Insurance1.80%
0369121518
Portfolio CharacteristicsAs of 03/31/2025
| Description | Baron Durable Advantage Fund | S&P 500 Index |
|---|---|---|
| Inception Date | December 29, 2017 | |
| Net Assets | $446.26 million | |
| # of Issuers / % of Net Assets | 32/99.9% | |
| Turnover (3 Year Average) | 11.38% | |
| Active Share | 70.2% | |
| Median Market Cap | $161.49 billion | $35.86 billion |
| Weighted Average Market Cap | $818.32 billion | $905.84 billion |
| Gross Expense Ratio | 1.04% | |
| Net Expense Ratio | 0.95% | |
| As of FYE Current Expense Ratio Date | 1/28/2025 | |
| EPS Growth (3-5 year forecast) | 16.5% | 12.3% |
| Price/Earnings Ratio (trailing 12-month) | 29.2x | 24.3x |
| Price/Book Ratio | 6.0x | 3.7x |
| Price/Sales Ratio | 4.9x | 2.7x |
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.
Distributions
| Record Date | Ex Date | Payable Date | Income | Return of Capital | Short-Term Capital Gain | Long-Term Capital Gain | Total | Re-Invest NAV | Calendar-Year Return |
|---|---|---|---|---|---|---|---|---|---|
| 12/16/2024 | 12/17/2024 | 12/18/2024 | $0.0022 | $0.0000 | $0.0000 | $0.0000 | $0.0022 | $29.14 | 26.87% |
| 12/06/2023 | 12/07/2023 | 12/08/2023 | $0.0004 | $0.0000 | $0.0000 | $0.0000 | $0.0004 | $21.34 | 45.11% |
| 11/22/2021 | 11/23/2021 | 11/24/2021 | $0.0000 | $0.0000 | $0.0000 | $0.0605 | $0.0605 | $20.06 | 31.79% |
| 07/28/2021 | 07/29/2021 | 07/30/2021 | $0.0079 | $0.0000 | $0.0000 | $0.0000 | $0.0079 | $18.96 | 31.79% |
| 07/29/2020 | 07/30/2020 | 07/31/2020 | $0.0182 | $0.0000 | $0.0000 | $0.0000 | $0.0182 | $14.02 | 20.11% |
For estimated distributions, visit the Tax Center
Investor Series
Baron Durable Advantage Fund: A Unique Approach to Large-Cap Core Investing
According to the conventional wisdom, large-cap stocks are the place to go for value-oriented passive investing. These companies have already reached their growth potential, the thinking goes, and the efficiency and transparency of this asset category makes it tough for active managers to beat the benchmark.
We have never followed the conventional wisdom. On the contrary, we believe there are significant opportunities for the selective investor who eschews the conventional wisdom to analyze large caps with a fresh and unbiased eye.
Latest News & Insights
By Alex Umansky
27 min read
1 of 5