Ron Baron(@RonBaronAnalyst):On January 25, 2025, on the ride to downtown LA from LAX, “stopped by” SpaceX to chat with SpaceX’s CFO. What’s new? A LOT! 1. Starlink subscribers more than doubled to 4.6 million in 2024. Could double again in 2025. Planet Earth has more than 8 billion inhabitants. About one third have no broadband internet. 2. United Airlines, Qatar, Hawaiian Air, Air France, and SAS have all recently installed or are in the process of installing Starlink on their planes. A lot more to come. 3. Telco direct to cell texts from Starlink satellites will be available in 2025...initially through T-Mobile and multiple other mobile network operators around the world. We think this is a game changer. 4. In March, SpaceX will launch four more astronauts to the International Space Station and return home two that have been on the orbiting lab for eight months since Boeing flight test last year. Since SpaceX is privately owned... for most of us, even though its shares are actively traded, it is very difficult to purchase without unusual costs. Purchases of Baron Partners Fund and Baron Focused Growth Fund, two open end, no-load mutual funds with significant holdings of SpaceX, are one way to participate at what we believe are attractive annual management fees. Baron Partners Fund is one of only two equity mutual funds in the United States…of over 2,600 such funds… to outperform the QQQ ETF for the past fifteen years. In fact, Baron Partners Fund was the number one performing fund in that group for this period. ------------------------------------- Disclosures Note, the peer group used for this analysis includes all U.S. equity share classes in Morningstar Direct domiciled in the U.S., including obsolete funds, index funds, and ETFs. The individual Morningstar Categories used for this analysis are the Morningstar Large Blend, Large Growth, Large Value, Mid-Cap Blend, MidCap Growth, Mid-Cap Value, Small Blend, Small Growth, and Small Value Categories. As of 12/31/2024, Morningstar Large Growth Category consisted of 1,088, 952, and 748, share classes for the 1-, 5-, and 10-year periods. Morningstar ranked Baron Partners Fund in the 30th, 1st, 1st, 1st , 1st, and 1st percentiles for the 1-, 5-, 10-, 15-, 20-year, and since inception periods, respectively. The Fund converted into a mutual fund on 4/30/2003, and the category consisted of 678 share classes. Morningstar calculates the Morningstar Large Growth Category Average performance and rankings using its Fractional Weighting methodology. Morningstar rankings are based on total returns and do not include sales charges. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets. Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund's distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting https://t.co/cb9N4c6TbI. Please read them carefully before investing. Risks: The Baron Focused Growth Fund and Baron Partners Funds are non-diversified which means, in addition to increased volatility of the Funds’ returns, they will likely have a greater percentage of their assets in a single issuer or a small number of issuers, including in a particular industry than a diversified fund. Single issuer risk is the possibility that factors specific to an issuer to which the Fund is exposed will affect the market prices of the issuer’s securities and therefore the net asset value of the Fund. As of the most recent quarter-end about 41% of Baron Partners Fund’s long positions are invested in Tesla stock. Therefore, the Funds are exposed to the risk that were Tesla stock to lose significant value, which could happen rapidly, the Funds’ performance would be adversely affected. Specific risks associated with investing in small and medium-sized companies include that the securities may be thinly traded and more difficult to sell during market downturns. Specific risks associated with leverage include increased volatility of the Fund’s returns and exposure of the Fund to greater risk of loss in any given period. For information pertaining to the QQQ ETF, please refer to that firm’s website. The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this document reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views reflect our best judgment at the time and are subject to change at any time based on market and other conditions and Baron Capital has no obligation to update them. © 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. Portfolio holdings as a percentage of net assets as of December 31, 2024 for securities mentioned are as follows: Space Exploration Technologies Corporation - Baron Focused Growth Fund (11.4%) and Baron Partners Fund (15.1%*) As of December 31, 2024, no Fund held shares of United Airlines, Hawaiian Air, Air France, SAS, T-Mobile, or Qatar. *% of Long Positions. Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk. BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA)..

2025.03.05 14:39

On January 25, 2025, on the ride to downtown LA from LAX, “stopped by” SpaceX to chat with SpaceX’s CFO. What’s new? A LOT! 1. Starlink subscribers more than doubled to 4.6 million in 2024. Could double again in 2025. Planet Earth has more than 8 billion inhabitants. About one third have no broadband internet. 2. United Airlines, Qatar, Hawaiian Air, Air France, and SAS have all recently installed or are in the process of installing Starlink on their planes. A lot more to come. 3. Telco direct to cell texts from Starlink satellites will be available in 2025...initially through T-Mobile and multiple other mobile network operators around the world. We think this is a game changer. 4. In March, SpaceX will launch four more astronauts to the International Space Station and return home two that have been on the orbiting lab for eight months since Boeing flight test last year. Since SpaceX is privately owned... for most of us, even though its shares are actively traded, it is very difficult to purchase without unusual costs. Purchases of Baron Partners Fund and Baron Focused Growth Fund, two open end, no-load mutual funds with significant holdings of SpaceX, are one way to participate at what we believe are attractive annual management fees. Baron Partners Fund is one of only two equity mutual funds in the United States…of over 2,600 such funds… to outperform the QQQ ETF for the past fifteen years. In fact, Baron Partners Fund was the number one performing fund in that group for this period. ------------------------------------- Disclosures Note, the peer group used for this analysis includes all U.S. equity share classes in Morningstar Direct domiciled in the U.S., including obsolete funds, index funds, and ETFs. The individual Morningstar Categories used for this analysis are the Morningstar Large Blend, Large Growth, Large Value, Mid-Cap Blend, MidCap Growth, Mid-Cap Value, Small Blend, Small Growth, and Small Value Categories. As of 12/31/2024, Morningstar Large Growth Category consisted of 1,088, 952, and 748, share classes for the 1-, 5-, and 10-year periods. Morningstar ranked Baron Partners Fund in the 30th, 1st, 1st, 1st , 1st, and 1st percentiles for the 1-, 5-, 10-, 15-, 20-year, and since inception periods, respectively. The Fund converted into a mutual fund on 4/30/2003, and the category consisted of 678 share classes. Morningstar calculates the Morningstar Large Growth Category Average performance and rankings using its Fractional Weighting methodology. Morningstar rankings are based on total returns and do not include sales charges. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets. Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund's distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting Please read them carefully before investing. Risks: The Baron Focused Growth Fund and Baron Partners Funds are non-diversified which means, in addition to increased volatility of the Funds’ returns, they will likely have a greater percentage of their assets in a single issuer or a small number of issuers, including in a particular industry than a diversified fund. Single issuer risk is the possibility that factors specific to an issuer to which the Fund is exposed will affect the market prices of the issuer’s securities and therefore the net asset value of the Fund. As of the most recent quarter-end about 41% of Baron Partners Fund’s long positions are invested in Tesla stock. Therefore, the Funds are exposed to the risk that were Tesla stock to lose significant value, which could happen rapidly, the Funds’ performance would be adversely affected. Specific risks associated with investing in small and medium-sized companies include that the securities may be thinly traded and more difficult to sell during market downturns. Specific risks associated with leverage include increased volatility of the Fund’s returns and exposure of the Fund to greater risk of loss in any given period. For information pertaining to the QQQ ETF, please refer to that firm’s website. The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this document reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views reflect our best judgment at the time and are subject to change at any time based on market and other conditions and Baron Capital has no obligation to update them. © 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. Portfolio holdings as a percentage of net assets as of December 31, 2024 for securities mentioned are as follows: Space Exploration Technologies Corporation - Baron Focused Growth Fund (11.4%) and Baron Partners Fund (15.1%*) As of December 31, 2024, no Fund held shares of United Airlines, Hawaiian Air, Air France, SAS, T-Mobile, or Qatar. *% of Long Positions. Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk. BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA)..