Baron Small Cap Fund

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.

Red Rock Resorts, Inc. (RRR) owns and operates 20 local casinos in Las Vegas and is in the planning stages of developing and managing a tribal casino in California. The company also controls seven gaming-entitled sites consisting of almost 600 acres in Las Vegas and 30 acres in Reno.
Red Rock operates in the improving Las Vegas locals gaming market, which is now back to previous peak levels. We think the market is attractive, given favorable fundamentals including population growth 2.7 times the national average and $20 billion in projects either in the planning stages or under development. The market also offers the lowest tax rate in the U.S., with limitations on the development of new casinos in the region. Red Rock also has the option to develop or sell its owned acreage.

Kinsale Capital Group, Inc. (KNSL) is a property and casualty (P&C) insurer focused exclusively on the excess and surplus lines (E&S) market, which includes risks that are unique or difficult to place in the standard insurance market.
We believe Kinsale is a well-run insurer that should grow earnings and book value per share much faster than its peers. The company's focus on the attractive E&S market, underwriting discipline, and efficient technology platform enable it to rapidly grow premiums while delivering industry-leading underwriting margins. Management is highly regarded and has decades of experience in the E&S market. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

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.
SITE is more than three times the size of its nearest competitor yet holds only a low-teens share of a highly fragmented market. We see meaningful runway for accretive M&A, supported by an experienced management team with a strong track record. Internal initiatives—including branch improvements, private-label growth, and transportation management—should accelerate margin expansion toward the 13% mid-term target and drive upside.

JBT Marel Corporation (JBTM) is a global leader in food and beverage processing solutions. The company provides processing equipment, robotics, and proprietary software for customers across animal protein, prepared foods, and beverages, helping improve operational outcomes.
As a leader in the food processing equipment industry, JBT leverages its scale to invest in its offerings in ways competitors cannot match, particularly in automation and full-line solutions that are increasingly critical. The company’s recent acquisition of Marel is progressing well, enhancing growth and profitability as management realizes both cost and revenue synergies from a more complete product portfolio. We expect above-industry organic growth, supplemented by further consolidation, to drive margin expansion and create substantial shareholder value over time.

TransDigm Group Incorporated (TDG) designs, manufactures, and supplies highly engineered aerospace components, systems, and subsystems used on nearly all commercial and military aircraft worldwide. Its products serve original equipment and aftermarket customers.
TransDigm’s highly engineered, proprietary components are designed into aircraft and subject to rigorous customer and regulatory certification, creating high switching costs. Once installed, many products generate higher-margin, more stable aftermarket revenue over aircraft lives of 25 to 30 years. This recurring cash flow supports acquisitions, special dividends, and share repurchases.

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.

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.

Liberty Media Corporation - Liberty Formula One (FWONK) is a tracking stock that consists primarily of Liberty Media Corporation's interest in Formula One Group.
Formula One is a unique sports property that benefits from the rising value of broadcasting rights, new sponsorship deals, and strong third-party interest to host races. The sport continues to gain popularity globally and has seen impressive growth in the U.S. The growth in fan interest has translated into attractive contract extensions with race promoters and a number of new relationships with global brands. Additionally, Liberty Media acquired Dorna Sports, the organization behind MotoGP, a fast-growing and emerging motorsport.

The Baldwin Insurance Group, Inc. (BWIN) is an insurance brokerage firm that distributes commercial and personal lines insurance to over 3 million clients.
The Baldwin Insurance Group is gaining market share due to its entrepreneurial culture, unique client service offerings, and fast-growing distribution channels. The company is an active consolidator in the highly fragmented insurance brokerage industry. We expect margin expansion driven by the lapping of recent growth investments, increased operating leverage on corporate overhead, and contributions from high-margin acquisitions. Management targets double-digit organic growth and aims to nearly triple earnings over the next five years.