"Tracking Ron Baron’s BAMCO Portfolio – Q2 2020 Update"
"BAMCO’s 13F portfolio value increased from $20.41B to $27.66B this quarter.Ron Baron added ZoomInfo Tech and increased Zillow Group during the quarter.Their top five positions are at ~22% 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 08/14/2020. The 13F portfolio value increased ~35% from $20.41B to $27.66B this quarter. The holdings are diversified with recent 13F reports showing around 350 positions. There are 56 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, CoStar Group, IDEXX Labs, FactSet Research, and Vail Resorts. They add up to ~22% of the portfolio. Please visit our  series to get an idea of their investment philosophy and our  for the fund’s moves during Q1 2020.Baron Capital currently has ~$30B 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 – 11.91% annualized for Baron Asset Fund compared to 10.32% & 9.72% respectively for the Russell Midcap Growth & S&P 500 Indexes respectively and 13.82% annualized for Baron Partners Fund compared to 10.02% & 9.59% respectively for the Russell Midcap Growth & S&P 500 Indexes. The other funds in the group are Baron Discovery Fund (BDFIX), Baron Growth Fund (BGRIX), Baron Small Cap Fund (BSFIX), Baron Focused Growth Fund (BFGIX), Baron Durable Advantage Fund (BDAIX), Baron Fifth Avenue Growth Fund (BFTIX), Baron Opportunity Fund (BIOIX), Baron Emerging Markets Fund (BEXIX), Baron Global Advantage Fund (BGAIX), Baron International Growth Fund (BINIX), Baron FinTech Fund (BFIIX), and Baron Health Care Fund (BHCHX), Baron Real Estate Fund (BREIX), Baron Real Estate Income Fund (BRIIX), and Baron WealthBuilder Fund (BWBIX).Note: Some of the top holdings in their Emerging Market, International and Global funds are not in the 13F report as they are not 13F securities. Such positions include Tencent Holdings (TCEHY), Samsung Electronics (SSNLF), Sberbank of Russia (SBRCY), Reliance Industries, and Midea Group.New Stakes:ZoomInfo Technologies (ZI): ZI is a small 0.59% of the portfolio position established this quarter at prices between $34 and $53 and the stock currently trades just below that range at $32.34. ZoomInfo had an IPO in June and the shares started trading at ~$34.Stake Disposals:None.Stake Increases: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 ~$44 per share. Last six quarters have seen only minor adjustments. The stock currently trades at ~$442 and is now the largest 13F position at 6.31% of the portfolio.Note: The prices quoted above are adjusted for the 5-for-1 stock split on August 31st. Ron Baron has indicated that he is very bullish on Tesla Motors saying it could be worth ~$1.5T by 2030. This is compared to the current Market Cap of ~$410B.CoStar Group (CSGP): CSGP is a top three stake at 5.40% of the portfolio. It is a very long-term position that has been in the portfolio for almost 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 ~$17.50 and ~$47. 2014 also saw a ~45% stake increase at prices between $142 and $212. Since then, the position had remained relatively steady although adjustments were made in most quarters. Recent activity follows: last two years saw a ~20% selling at prices between ~$295 and ~$740. There have only been minor adjustments in the last two quarters. The stock currently trades at ~$827.Note: Baron Capital owns ~6% of CoStar Group.Arch Capital Group (ACGL): ACGL is a 2.25% 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. Last five quarters had seen a ~6% trimming. The stock is now at $29.48. There was a marginal increase this quarter.Note: Baron Capital owns ~5.3% of Arch Capital Group.Alibaba Group Holdings (BABA): BABA is a 1.85% 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 last year there was a 75% increase at prices between ~$140 and ~$210. The stock currently trades at ~$272.  This quarter saw a ~9% increase.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 $94.91. Last two quarters have seen a marginal increase.Note: Baron Capital owns ~8.5% of Choice Hotels.Bright Horizons Family Solutions (BFAM): The 1.17% 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 last quarter at prices between ~$55 and ~$175. The stock currently trades at ~$139. There was a ~12% stake increase this quarter.Gaming & Leisure Properties (GLPI): The 1.13% 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. Last five quarters had also seen a ~14% trimming. The stock currently trades at $37.24. There was a marginal increase this quarter.Kinsale Capital (KNSL): KNSL is a ~1% 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. Last six quarters have seen a ~30% stake increase at prices between ~$58 and ~$157. The stock currently trades at ~$182.Note: Baron Capital owns ~8.5% of Kinsale Capital.Zillow Group (Z): The ~1% Z position 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. Since then, the stake has wavered. Recent activity follows: 2019 had seen a ~50% stake increase at prices between ~$29.50 and ~$50. That was followed with a two-thirds reduction last quarter at prices between ~$25 and ~$65. This quarter saw the position increased by ~240% at prices between ~$30 and ~$63. The stock currently trades at $95.87.Hyatt Hotels (H): The 1.55% H 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 has remained relatively steady although adjustments were made every quarter. The stock currently trades at $57.02. Last two quarters have seen minor increases.Note: Baron Capital owns ~13% of Hyatt Hotels.Ceridian HCM Holding (CDAY): The 0.81% 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 $75.03. This quarter saw a marginal increase.Alexandria Real Estate (ARE): ARE is a 0.74% of the portfolio stake established in 2009 at prices between ~$32 and ~$64. The sizing had remained relatively steady over the last decade. Last year saw a ~25% stake increase at prices between ~$113 and ~$162. The stock currently trades at ~$159. Last two quarters saw a marginal increase.Amazon (AMZN), Americold Realty (COLD), Aspen Technology (AZPN), Charles Schwab (SCHW), Illumina Inc. (ILMN), Installed Building Products (IBP), MarketAxess Holdings (MKTX), Penn National Gaming (PENN), Transunion (TRU), and Veeva Systems (VEEV): These small (less than ~1.5% of the portfolio each) positions were increased during the quarter.Note: Baron Capital owns ~9% of Penn National Gaming.Stake Decreases:Idexx Labs (IDXX): IDXX is a top three 4.10% of the portfolio first purchased in 2005. The next three years saw a large stake build-up at prices between ~$15 and ~$30. Since then, the position has remained relatively steady although adjustments were made every quarter. Last six quarters have seen a ~17% trimming. The stock currently trades at ~$355.FactSet Research (FDS): FDS is a 3.28% 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 ~2.76M shares and the stock is at ~$336. They are harvesting gains. This quarter saw marginal trimming.Note: Baron Capital owns ~7.3% of FactSet Research.Vail Resorts (MTN): MTN is a top-five ~3% 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. Last six quarters saw a ~7% trimming. The stock currently trades at ~$219.Note: Baron Capital owns ~11% of Vail Resorts.MSCI Inc. (MSCI): MSCI is a 3.26% 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. Last quarter saw a ~5% stake increase while this quarter there was marginal trimming. The stock currently trades at ~$345.Ansys Inc. (ANSS): The bulk of the 2.64% 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. Last six quarters have seen only minor adjustments. The stock currently trades at ~$305.Gartner Inc. (IT): IT is a 2.54% 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: last six quarters saw a ~18% trimming at prices between ~$83 and ~$171. The stock currently trades at ~$131.Note: Baron Capital owns ~6.5% of Gartner Inc.Guidewire Software (GWRE): The 2.29% 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. The stock currently trades at ~$103. There was a ~7% trimming this quarter.Note: Baron Capital owns ~7% of Guidewire Software.Mettler Toledo International (MTD): MTD is 1.34% 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: ~80% reduction at prices between ~$100 and ~$870. The stock is now at ~$976. They are harvesting long-term gains.Iridium Communications (IRDM): IRDM is a 1.19% 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 $27.31. This quarter saw marginal trimming.Note: Baron Capital owns ~10% of Iridium Communications.GDS Holdings (GDS): The 1.16% GDS stake was established in 2018 and built at prices between ~$23 and ~$63. The stock is now at $78.34. There was marginal trimming this quarter.Marriott Vacations Worldwide (VAC): VAC is a 0.83% 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 stock is now at $92.89. This quarter saw a ~7% trimming.Note: Baron Capital owns ~6.5% of Marriott Vacations Worldwide.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 last year at prices between ~$35 and ~$59. There was a ~20% reduction over the last two quarters at prices between ~$47 and ~$58. The stock currently trades at $80.23 and the stake is at 0.63% of the portfolio.Bio-Techne Corp (TECH), Clarivate Analytics (CCC), Dexcom Inc. (DXCM), Douglas Emmett Inc. (DEI), Equinix Inc. (EQIX), Fidelity National Information Services (FIS), Manchester United (MANU), Morningstar Inc. (MORN), Primerica Inc. (PRI), SBA Communications (SBAC), SS&C Technologies (SSNC), Siteone Landscape Supply (SITE), Teladoc Inc. (TDOC), Trex Co Inc. (TREX), The Trade Desk (TTD), Verisign Inc. (VRSN), Verisk Analytics (VRSK), West Pharma (WST), Wix.com (WIX), and Zai Lab (ZLAB): These small (less than ~1.75% of the portfolio each) positions were reduced this quarter.Note: Baron Capital owns ~5.6% of Primerica and ~30% of Manchester United.Kept Steady:Cohen & Steers Inc. (CNS): The very small 0.62% CNS stake was kept steady this quarter.Note: Baron Capital owns ~5.4% of Cohen & Steers Inc.Note: 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), Endava plc (DAVA), and Repay Holdings (RPAY).The spreadsheet below highlights changes to Ron Barron’s US stock holdings in Q2 2020:Regulatory filings thru 6/2/2020: 13G/A – 4/9 – BNFT – BenefitFocus - ~105K shares – 0.32% of business."