"Tracking Ron Baron’s BAMCO Portfolio – Q3 2021 Update"
"BAMCO’s 13F portfolio value increased from $43.68B to $44.15B this quarter.Ron Baron increased Zillow Group, Hyatt Hotels, Taiwan Semi, and Spotify while decreasing Manchester United, Zai Lab, and GDS Holdings.Their top five positions are at ~25% of the overall portfolio.This article is part of a series that provides an ongoing analysis of the changes made to BAMCO Inc.’s 13F stock portfolio on a quarterly basis. It is based on Ron Baron’s regulatory  filed on 11/12/2021. The 13F portfolio value increased marginally from $43.68B to $44.15B this quarter. The holdings are diversified with recent 13F reports showing around 400 positions. There are 49 securities that are significantly large (more than ~0.5% of the portfolio each) and they are the focus of this article. The largest five stakes are Tesla Motors, Gartner Inc, IDEXX Labs, CoStar Group, and Vail Resorts. They add up to ~25% of the portfolio. Please visit our  series to get an idea of their investment philosophy and our  for the fund’s moves during Q2 2021.Baron Capital currently has ~$55B under management. The assets are distributed among several mutual funds with the common theme of long-term research-driven growth investment solutions. Their flag ship mutual funds are Barron Asset Fund (BARIX) incepted in 1987 and Baron Partners Fund (BPTIX) incepted in 1992. Both funds have produced significant alpha over their lifetimes – 12.46% annualized for Baron Asset Fund compared to 11.08% for the Russell Midcap Growth and 16.45% annualized for Baron Partners Fund compared to 10.90% for the Russell Midcap Growth.Stake Increases:Guidewire Software (GWRE): The 1.55% GWRE position was purchased in the 2012-2013 timeframe at prices between ~$20 and ~$49. Guidewire had an IPO in January 2012. 2017 also saw a ~25% stake increase at prices between ~$51 and ~$83. Since then the activity has been minor. The stock currently trades at ~$114.Note: Baron Capital owns ~7% of Guidewire Software.Mettler Toledo International (MTD): MTD is a 1.19% of the portfolio position established in 2008 at prices between ~$68 and ~$110. Next year saw a ~150% stake increase at prices between ~$47 and ~$100. Since 2009, the position has seen consistent selling: ~85% reduction at prices between ~$100 and ~$1398. The stock is now at ~$1626. They are harvesting long-term gains.Zillow Group (Z): The ~1% position in Zillow goes back to 2011 when they established a very small stake following Zillow’s IPO that July. Shares started trading at ~$34 per share. 2015 saw the position built to ~3.8M shares at prices between ~$23 and ~$125. The stake has wavered. Recent activity follows: 2019 saw a ~50% stake increase at prices between ~$29.50 and ~$50 while Q1 2020 saw a two-thirds reduction at prices between ~$25 and ~$65. Next quarter saw the position increased by ~240% at prices between ~$30 and ~$63. This quarter saw another ~18% stake increase at prices between ~$85 and ~$120. The stock currently trades at $63.74.Note: Baron Capital owns ~12% of Zillow Group.Marriott Vacations Worldwide (VAC): VAC is a ~1% portfolio position. A minutely small stake was purchased in 2012 and the following two years saw the position built to a ~2M share position at prices between ~$42 and ~$75. 2018 also saw a ~50% increase at prices between ~$62.50 and ~$152. The four quarters through Q1 2021 had seen a ~15% trimming while the last two quarters have seen minor increases. The stock is now at ~$167.Note: Baron Capital owns ~6% of Marriott Vacations Worldwide.Hyatt Hotels (H): The 0.94% Hyatt stake was established in the high-20s price range in 2009 following their IPO that November. The next five years saw the position almost doubled at prices between ~$29 and ~$64. 2016 saw a ~30% selling at prices between ~$37 and ~$58. Since then, the stake had remained relatively steady although adjustments were made every quarter. There was a ~15% stake increase this quarter at prices between ~$69 and ~$81. The stock currently trades at $93.62.Note: Baron Capital owns ~15% of Hyatt Hotels.Gaming & Leisure Properties (GLPI): The 0.93% GLPI stake was established in 2013 because of its spin-off from Penn National Gaming. 2016 saw the stake increased by ~30% at prices between ~$25.50 and ~$36 while next year saw a similar reduction at prices between ~$30 and ~$39. The five quarters thru Q1 2020 had also seen a ~14% trimming. The stock currently trades at $46.50. Last several quarters have seen only minor adjustments.Taiwan Semiconductors (TSM): A very small position in TSM was established in 2013 at prices between ~$16 and ~$20. Since then, every year had seen consistent buying. Recent activity follows: 2018 saw a ~30% stake increase at prices between ~$35 and ~$46 and that was followed with a ~12% further increase next year at prices between ~$35 and ~$59. There was a ~25% reduction over the first three quarters of last year at prices between ~$44 and ~$86. There was a ~20% stake increase this quarter at prices between ~$108 and ~$125. The stock currently trades at ~$121 and the stake is at 0.90% of the portfolio.Ceridian HCM Holding (CDAY): The 0.80% CDAY stake was established in Q2 2018. CDAY had an IPO in April 2018 and shares started trading at ~$34 per share. The position has since been increased by ~85% through consistent buying every quarter. The stock currently trades at ~$104.Kinsale Capital (KNSL): KNSL is a 0.77% of the portfolio stake. A very small position was established in 2016 following Kinsale’s IPO. Most of the current position was built next year at prices between ~$28 and ~$45. The six quarters thru Q2 2020 had seen a ~30% stake increase at prices between ~$58 and ~$157. The stock currently trades at ~$224. There was a ~12% increase over the last three quarters.Note: Baron Capital owns ~9% of Kinsale Capital.Amazon (AMZN): The 0.66% AMZN stake was increased by ~18% in Q4 2020 at prices between ~$3005 and ~$3445 and the stock currently trades at ~$3421. Last three quarters also saw minor buying.RingCentral (RNG): The RNG stake saw significant buying over the last three quarters. It is a 0.59% of the portfolio stake that was increased by roughly one-third in Q4 2020 at prices between ~$257 and ~$403. Last quarter saw another ~60% stake increase at prices between ~$235 and $331. It currently trades near the bottom of those ranges at ~$193. There was a marginal increase this quarter.Cohen & Steers (CNS), Red Rock Resorts (RRR), SBA Communications (SBAC), and Spotify Technology (SPOT): These very small (less than ~1% of the portfolio each) stakes were increased this quarter.Note: Baron Capital owns significant ownership stakes in the following businesses: Cohen & Steers and Red Rock Resorts.Stake Decreases:Tesla Motors (TSLA): TSLA was a minutely small stake first purchased in 2012. The current position was built from 2014 at an average cost of ~$43 per share. The three quarters through Q1 2021 had seen a ~25% selling at prices between ~$445 and ~$883. The stock currently trades at ~$1067 and is now the largest 13F position at ~11% of the portfolio. There was marginal trimming in the last two quarters.Note 1: In a CNBC interview in October, it was revealed that their TSLA cost-basis is $42.88. They are still very bullish and expect to hold it for a decade.Note 2: The prices quoted above are adjusted for the 5-for-1 stock split last August.Gartner Inc. (IT): IT is a 3.76% of the portfolio position first purchased in 2007 at prices between ~$16 and ~$28. The next three years saw consistent buying as the original position was increased by ~50% at prices between ~$9 and ~$28. The 2014-2015 timeframe saw a ~22% reduction at prices between ~$66 and ~$93. Recent activity follows: the seven quarters through Q3 2020 saw a ~20% selling at prices between ~$83 and ~$171. The stock currently trades at ~$326. Last few quarters have seen minor trimming.Note: Baron Capital owns ~6% of Gartner Inc.Idexx Labs (IDXX): IDXX is a top three 3.65% of the portfolio stake first purchased in 2005. The next three years saw a large stake build-up at prices between ~$15 and ~$30. Since then, the position had remained relatively steady although adjustments were made every quarter. Last ten quarters have seen a ~45% selling. The stock currently trades at ~$645. They are harvesting gains.CoStar Group (CSGP): CSGP is a top five stake at 3.63% of the portfolio. It is a very long-term position that has been in the portfolio for two decades. The stake was first purchased in 2000 and the position remained very small for the next three years. The bulk of the current position was built in the 2003-2004 timeframe at prices between ~$1.75 and ~$4.70. 2014 also saw a ~45% stake increase at prices between $14.20 and $21.20. Since then, the position had remained relatively steady although adjustments were made in most quarters. Recent activity follows: last two years saw a ~22% selling at prices between ~$29.50 and ~$94. The stock currently trades at $79.94. Last three quarters have seen only minor adjustments.Note: Baron Capital owns ~5% of CoStar Group. The prices quoted above are adjusted for the 10-for-1 stock-split in June.Vail Resorts (MTN): MTN is a top-five 3.33% very long-term stake. During their first 13F filing in Q1 1999, the position was already very large at 11.6M shares. That original stake was sold down by around two-thirds in the 2003-2004 timeframe at prices between ~$11.50 and ~$23. Since then, there has only been minor activity. The two years through 2020 saw a ~10% trimming. The stock currently trades at ~$332.  Last three quarters have seen only minor adjustments.Note: Baron Capital owns ~11% of Vail Resorts.MSCI Inc. (MSCI): MSCI is a ~3% of the portfolio position established in 2007. Next year saw the stake built to a ~9.9M share position at prices between ~$12.50 and ~$36. The 2012-2014 timeframe saw the position reduced by ~75% at prices between ~$26 and ~$50. Since then, the stake has remained relatively steady. Q1 2020 saw a ~5% stake increase while there was minor trimming over the next three quarters. The stock currently trades at ~$611. Last three quarters have seen only minor adjustments.FactSet Research (FDS): FDS is a 2.37% long-term stake first purchased in 2006. The next two years saw a 4.7M share stake built at prices between $34 and $69. The position has since been reduced thru minor selling almost every quarter. The stake is now at ~2.7M shares and the stock is at ~$480. They are harvesting gains. Last five quarters saw marginal trimming.Note: Baron Capital owns ~7% of FactSet Research.Arch Capital Group (ACGL): ACGL is a 1.83% of the portfolio stake first purchased in 2007 at prices between ~$7 and ~$8.25. The position remained relatively steady over the next three years. 2011 saw a ~17% stake increase at prices between ~$9.50 and ~$12.50 and that was followed with a similar increase in 2018 at prices between ~$25.50 and ~$31. Since then, the activity has been minor. The stock is now at $43.48.Note: Baron Capital owns ~5% of Arch Capital Group.Penn National Gaming (PENN): PENN is a 1.71% of the portfolio stake that has been in the portfolio since 2005. Recent activity follows: the two years through Q2 2020 saw a ~50% stake increase at prices between ~$4.50 and ~$74. The stock is currently at $51.40. There was a ~14% trimming in the last five quarters.Note: Baron Capital owns ~6.5% of Penn National Gaming.Bio-Techne Corp (TECH): The 1.64% of the portfolio TECH stake goes back to 2014 when it was acquired at a cost-basis of ~$90 per share. By 2018, the stake was built from ~1M shares to ~1.5M shares at prices up to ~$200. Since then, there has only been minor activity. The stock is currently at ~$495.Ansys Inc. (ANSS): The bulk of the 1.59% ANSS position was purchased in 2009 at prices between ~$20 and ~$43. The stake was increased by ~15% over the next two years but was reduced since. The four years thru 2018 saw a ~25% selling at prices between ~$143 and ~$190. The two years through 2020 had seen a ~10% trimming. The stock currently trades at ~$404. Last three quarters also saw a ~12% trimming.Choice Hotels (CHH): CHH was already a huge 19.4M share position in their first 13F filing in Q1 1999. That original stake was reduced by ~90% to a ~1.9M share stake by 2004 at prices between ~$3 and $22. 2007 saw a ~70% stake increase at prices between ~$26.50 and ~$34. Since then the position was relatively steady till 2014. The five years thru 2019 had seen minor trimming most quarters – overall, there was a ~15% selling during that period at prices between ~$42 and ~$105. The stock currently trades at ~$153. Last five quarters saw marginal trimming.Note: Baron Capital owns ~8.5% of Choice Hotels.Iridium Communications (IRDM): IRDM is a ~1% of the portfolio position first purchased in 2014 at prices between ~$6 and ~$10. The position had remained relatively steady since. H1 2019 saw a one-third stake increase at prices between ~$18.50 and ~$28 and that was followed with minor increases over the next two quarters. The stock currently trades at $42.29. Last few quarters have seen minor trimming.Note: Baron Capital owns ~9% of Iridium Communications.Bright Horizons Family Solutions (BFAM): The 0.79% BFAM stake was established in 2013 at prices between ~$28 and ~$38. BFAM had an IPO in Jan 2013 and shares started trading at ~$28 per share. The position had seen consistent selling since 2015. The stake was reduced by ~55% in the period thru Q1 2020 at prices between ~$55 and ~$175. The stock currently trades at ~$123. There was a ~12% stake increase in Q2 2020. Last five quarters have seen only minor adjustments.Alibaba Group Holdings (BABA): BABA is a 0.72% of the portfolio position first purchased in 2014 at prices between ~$85 and ~$115 following their IPO in September 2014. The stake was built over the next three years at prices between ~$59 and ~$191. 2018 saw a ~27% selling at prices between ~$130 and ~$208 while next year there was a 75% increase at prices between ~$140 and ~$210. The stock currently trades at ~$119.  Last few quarters have seen only minor adjustments.Alexandria Real Estate (ARE): ARE is a 0.56% of the portfolio stake established in 2009 at prices between ~$32 and ~$64. The sizing had remained relatively steady over the last decade. 2019 saw a ~25% stake increase at prices between ~$113 and ~$162. The stock currently trades at ~$218. Last six quarters had also seen incremental buying while this quarter saw marginal selling.GDS Holdings (GDS): The 0.30% GDS stake was established in 2018 and built at prices between ~$23 and ~$63. This quarter saw a ~50% reduction at prices between ~$50 and ~$76. The stock is now at $47.09.Alphabet Inc. (GOOG), Charles Schwab (SCHW), Douglas Emmett (DEI), Endava plc (DAVA), EPAM Systems (EPAM), Illumina Inc. (ILMN), Manchester United (MANU), Morningstar Inc. (MORN), Primerica Inc. (PRI),  SS&C Technologies (SSNC), Trex Co Inc. (TREX), Veeva Systems (VEEV), Verisk Analytics (VRSK), West Pharma (WST), Wix.com (WIX), Zai Lab (ZLAB), and ZoomInfo Technologies (ZI): These small (less than ~1% of the portfolio each) stakes were reduced during the quarter.Note 1: Baron Capital owns significant ownership stakes in the following businesses: Endava plc, Manchester United, Primerica, and ZoomInfo Technologies.Note 2: Although the positions as a percentage of the portfolio are very small, Baron Capital has significant ownership stakes in the following businesses: Altair Engineering (ALTR), BRP Group (BRP), Fifth Wall Acquisition I (FWAA), Grid Dynamics (GDYN), Installed Building Products (IBP), Repay Holdings (RPAY), and Sarissa Capital Acquisition (SRSA).The spreadsheet below highlights changes to Ron Barron’s US stock holdings in Q3 2021:Source: John Vincent. Data constructed from Ron Baron’s 13F filings for Q2 2021 and Q3 2021.Regulatory filings from 6/27/2021 thru 8/24/2021: 13G – 7/8 – Fifth Wall Acq. – FWAA – 4.65M shares - 13.07% of business."