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.

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.

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.

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.

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.

RadNet, Inc. (RDNT) is the leading U.S. provider of freestanding outpatient diagnostic imaging services and related IT solutions, as measured by location count and annual imaging revenue. It operates 366 centers across key states, including Arizona, California, Delaware, New Jersey, New York, and Texas.
RadNet’s growth is supported by an aging U.S. population, increased use of imaging in disease diagnosis and treatment, and the shift from inpatient imaging to lower-cost outpatient settings. The company builds leading positions in regional markets, using scale and relationships with payors, radiology groups, and referring physicians to drive operating efficiencies. Its multi-modality strategy diversifies revenue and reduces reimbursement risk, while AI capabilities enhance image interpretation, support earlier disease detection, and improve physician productivity.

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.

Neogen Corp. (NEOG) develops, manufactures, and markets a diverse line of products dedicated to food and animal safety.
Neogen closed its transformational merger with 3M's food safety business in September 2022. This deal should deliver enhanced scale, product breadth, and higher margins while firmly establishing Neogen as a leader in the food/animal safety industry. Over the long term, we expect Neogen will deliver compounding revenue growth powered by a growing product set and sales force as well as positive secular trends, including increased focus on food safety issues/regulations and the expanding middle class in emerging markets.

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.