N-Q 1 nq0607.txt FORM N-Q FOR THE PERIOD ENDING JUNE 30, 2007 UNITED STATES -------------------------- SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL | Washington, DC 20549 |--------------------------| |OMB Number: 3235 -0578 | |Expires: May 31, 2008| |Estimated average burden | |hours per response...21.09| -------------------------- FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-5032 -------------------------------------------- BARON INVESTMENT FUNDS TRUST ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 767 Fifth Avenue, 49th Floor, New York, NY 10153 ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Linda S. Martinson, Esq. c/o Baron Investment Funds Trust, 767 Fifth Avenue, 49th Floor, NY, NY 10153 ------------------------------------------------------------------------------- (Name and Address of Agent for Service) Registrant's Telephone Number, including Area Code: 212-583-2000 -------------- Date of fiscal year end: September 30 -------------------- Date of reporting period: June 30, 2007 -------------------- Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. SEC 2455 (8-05) BARON ASSET FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Common Stocks (94.62%) ------------------------------------------------------------------------------ Apparel (2.35%) 1,050,000 Polo Ralph Lauren Corp., Cl A $ 22,642,344 $103,015,500 Business Services (9.30%) 2,000,000 Brown & Brown, Inc. 46,427,539 50,280,000 3,300,000 ChoicePoint, Inc.(1)(4) 36,286,236 140,085,000 800,000 FactSet Research Systems, Inc. 46,858,999 54,680,000 150,000 IHS, Inc., Cl A(1) 6,716,817 6,900,000 2,900,000 Iron Mountain, Inc.(1) 63,076,798 75,777,000 1,150,000 Robert Half Intl, Inc. 1,202,006 41,975,000 1,300,000 SEI Investments Co. 24,895,335 37,752,000 ------------ ------------ 225,463,730 407,449,000 Consulting (1.94%) 550,000 Corporate Executive Board Co. 46,226,914 35,700,500 1,300,000 Gartner, Inc.(1) 34,445,591 31,967,000 280,000 Moody's Corp. 7,256,123 17,416,000 ------------ ------------ 87,928,628 85,083,500 Consumer Products (0.43%) 550,000 Bare Escentuals, Inc.(1) 18,985,428 18,782,500 Distribution (2.59%) 1,350,000 Fastenal Co. 54,551,048 56,511,000 500,000 MSC Industrial Direct Co., Inc., Cl A 26,071,838 27,500,000 750,000 Pool Corp. 32,037,928 29,272,500 ------------ ------------ 112,660,814 113,283,500 Education (0.99%) 1,275,000 DeVry, Inc. 7,614,588 43,375,500 Energy Services (7.56%) 1,000,000 Covanta Holding Corp.(1) 23,332,488 24,650,000 1,200,000 Helmerich & Payne, Inc. 38,464,161 42,504,000 500,000 Petroplus Holdings AG(1)(2) 34,354,429 51,456,150 500,000 SEACOR Holdings, Inc.(1) 14,322,278 46,680,000 550,000 SunPower Corp., Cl A(1) 23,223,259 34,677,500 200,000 Ultra Petroleum Corp.(1) 4,847,419 11,048,000 2,000,000 XTO Energy, Inc. 13,602,027 120,200,000 ------------ ------------ 152,146,061 331,215,650 Financial Services- Asset Management (5.78%) 600,000 AllianceBernstein Holding L.P. 26,349,211 52,254,000 1,950,000 Eaton Vance Corp. 51,869,700 86,151,000 478,400 Fortress Investment Group, LLC, Cl A 8,850,400 11,395,488 1,000,000 Nuveen Investments, Inc., Cl A 36,668,384 62,150,000 800,000 T. Rowe Price Group, Inc. 21,584,167 41,512,000 ------------ ------------ 145,321,862 253,462,488 Financial Services-Banking (1.09%) 625,000 City National Corp. 45,241,255 47,556,250 Financial Services- Brokerage & Exchanges (8.35%) 8,800,000 Charles Schwab Corp. 21,422,499 180,576,000 255,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 18,498,370 136,261,800 1,815,000 Jefferies Group, Inc. 51,452,427 48,968,700 ------------ ------------ 91,373,296 365,806,500 BARON ASSET FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Financial Services-Insurance (4.52%) 1,300,000 Arch Capital Group, Ltd.(1)(2) $ 54,246,056 $ 94,302,000 1,000,000 Assurant, Inc. 37,153,168 58,920,000 200,000 Axis Capital Holdings, Ltd. 4,666,755 8,130,000 1,100,000 HCC Insurance Holdings, Inc. 34,706,474 36,751,000 ------------ ------------ 130,772,453 198,103,000 Financial Services-Miscellaneous (0.58%) 125,000 The Student Loan Corp. 17,812,742 25,487,500 Gaming Services (1.16%) 1,450,000 Scientific Games Corp., Cl A(1) 43,694,074 50,677,500 Government Services (1.13%) 2,750,000 SAIC, Inc.(1) 49,157,711 49,692,500 Healthcare Facilities (4.58%) 1,050,000 Brookdale Senior Living, Inc. 45,410,052 47,848,500 1,200,000 Community Health Systems, Inc.(1) 35,423,446 48,540,000 1,600,000 Manor Care, Inc. 38,297,714 104,464,000 ------------ ------------ 119,131,212 200,852,500 Healthcare Products (2.37%) 1,150,000 DENTSPLY International, Inc. 25,389,865 43,999,000 800,000 Henry Schein, Inc.(1) 22,796,151 42,744,000 200,000 Zimmer Holdings, Inc.(1) 6,087,903 16,978,000 ------------ ------------ 54,273,919 103,721,000 Healthcare Services (6.16%) 850,000 Covance, Inc.(1) 50,799,180 58,276,000 650,000 IDEXX Laboratories, Inc.(1) 54,394,838 61,509,500 1,200,000 Stericycle, Inc.(1) 37,558,043 53,352,000 850,000 Thermo Fisher Scientific, Inc.(1) 24,522,276 43,962,000 1,400,000 VCA Antech, Inc.(1) 48,339,191 52,766,000 ------------ ------------ 215,613,528 269,865,500 Healthcare Services-Insurance (1.28%) 700,000 WellPoint, Inc.(1) 17,819,752 55,881,000 Hotels and Lodging (0.77%) 850,000 Choice Hotels Intl., Inc. 4,185,563 33,592,000 Information Technology Services (1.19%) 1,300,000 CheckFree Corp.(1) 50,033,687 52,260,000 Manufacturing (0.82%) 750,000 Embraer - Empresa Brasileira de Aeronautica S.A., ADR(2) 30,771,710 36,157,500 Media (1.86%) 1,300,000 Lamar Advertising Co., Cl A(1) 73,674,254 81,588,000 Real Estate (3.22%) 2,150,000 CB Richard Ellis Group, Inc., Cl A(1) 29,735,448 78,475,000 212,766 Corrections Corp. of America(1) 1,418 13,427,662 500,000 Forest City Enterprises, Inc., Cl A 24,352,392 30,740,000 400,000 The St. Joe Company 26,318,524 18,536,000 ------------ ------------ 80,407,782 141,178,662 Real Estate-Home Building (0.66%) 1,150,000 Toll Brothers, Inc.(1) 24,329,617 28,727,000 BARON ASSET FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Common Stocks (continued) ------------------------------------------------------------------------------ Real Estate-REITs (4.06%) 314,000 Alexander's, Inc.(1)(5) $ 20,453,936 $ 126,934,500 800,000 Douglas Emmett, Inc. 17,052,243 19,792,000 250,000 SL Green Realty Corp. 21,214,463 30,972,500 -------------- -------------- 58,720,642 177,699,000 Recreation and Resorts (10.68%) 1,300,000 Boyd Gaming Corp. 54,856,924 63,947,000 5,200,000 Kerzner Intl. Holdings, Ltd., Cl A(1)(2)(3) 52,000,000 52,000,000 3,000,000 Vail Resorts, Inc.(1)(5) 61,273,805 182,610,000 1,459,408 Wynn Resorts, Ltd.(1)(3) 21,345,164 124,349,589 500,000 Wynn Resorts, Ltd.(1) 3,500,355 44,845,000 -------------- -------------- 192,976,248 467,751,589 Restaurants (0.73%) 1,300,000 The Cheesecake Factory, Inc.(1) 30,439,703 31,876,000 Retail-Consumer Staples (1.09%) 1,250,000 Whole Foods Market, Inc. 41,811,475 47,875,000 Retail-Specialty Stores (2.96%) 1,100,000 CarMax, Inc.(1) 14,518,495 28,050,000 900,000 O'Reilly Automotive, Inc.(1) 26,139,929 32,895,000 1,300,000 Tiffany & Co. 43,343,180 68,978,000 -------------- -------------- 84,001,604 129,923,000 Transportation (2.71%) 1,550,000 C. H. Robinson Worldwide, Inc. 30,028,921 81,406,000 900,000 Expeditors International of Washington, Inc. 21,676,121 37,170,000 -------------- -------------- 51,705,042 118,576,000 Utility Services (1.71%) 2,300,000 Southern Union Co. 30,218,480 74,957,000 -------------- -------------- Total Common Stocks 2,310,929,204 4,145,471,639 -------------- -------------- ------------------------------------------------------------------------------ Convertible Preferred Stocks (0.27%) ------------------------------------------------------------------------------ Education (0.02%) 105,264 Apollo International, Inc. S-A Conv. Pfd.(1)(3)(5) 1,800,014 1,000,008 Healthcare Services (0.25%) 6,841 Somerford Corp. S-A Conv. Pfd.(1)(3) 10,951,004 10,951,002 -------------- -------------- Total Convertible Preferred Stocks 12,751,018 11,951,010 -------------- -------------- BARON ASSET FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Principal Amount Cost Value ------------------------------------------------------------------------------- Short Term Investments (5.25%) ------------------------------------------------------------------------------- Short Term Money Market Instruments (2.74%) $ 50,000,000 Chesham Finance Ltd. 5.32% due 07/02/2007 $ 50,000,000 $ 50,000,000 69,968,850 Citigroup Funding, Inc. 5.34% due 07/02/2007 69,968,850 69,968,850 -------------- -------------- 119,968,850 119,968,850 U.S. Government Agencies (2.51%) 109,956,458 Federal Home Loan Bank 4.75% due 07/02/2007 109,956,458 109,956,458 -------------- -------------- Total Short Term Investments 229,925,308 229,925,308 -------------- -------------- Total Investments (100.14%) $2,553,605,530 4,387,347,957 ============== Liabilities Less Cash and Other Assets (-0.14%) (5,991,870) -------------- Net Assets (Equivalent to $64.96 per share based on 67,443,880 shares outstanding) $4,381,356,087 ============== -------- % Represents percentage of net assets. (1) Non-income producing securities. (2) Foreign domiciled corporation. (3) Restricted and Fair Valued Securities. (4) Represents securities or a portion thereof, in segregated custodian account. (5) See Note 3 regarding "affiliated" investments. ADR American Depositary Receipt. BARON GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Common Stocks (92.46%) ------------------------------------------------------------------------------- Advertising Services (0.34%) 450,000 Harte-Hanks, Inc. $ 7,987,320 $ 11,556,000 425,000 National CineMedia, Inc.(1) 10,744,572 11,904,250 ------------ ------------ 18,731,892 23,460,250 Apparel (1.90%) 2,900,000 Carter's, Inc.(1) 39,178,712 75,226,000 1,225,000 Under Armour, Inc., Cl A(1) 40,384,710 55,921,250 ------------ ------------ 79,563,422 131,147,250 Automotive Parts (1.67%) 2,725,000 Copart, Inc.(1) 69,029,357 83,357,750 1,300,000 LKQ Corp.(1) 30,817,176 32,058,000 ------------ ------------ 99,846,533 115,415,750 Building Materials (0.71%) 1,000,000 Eagle Materials, Inc. 47,435,838 49,050,000 Business Services (1.44%) 600,000 Brown & Brown, Inc. 9,830,330 15,084,000 1,500,000 ChoicePoint, Inc.(1)(4) 32,039,190 63,675,000 40,000 FactSet Research Systems, Inc. 2,040,491 2,734,000 387,100 IHS, Inc., Cl A(1) 15,877,527 17,806,600 ------------ ------------ 59,787,538 99,299,600 Chemical (0.37%) 700,000 Senomyx, Inc.(1) 6,340,864 9,450,000 1,400,000 Symyx Technologies, Inc.(1) 20,931,904 16,114,000 ------------ ------------ 27,272,768 25,564,000 Communications (2.21%) 1,050,000 Equinix, Inc.(1) 34,189,968 96,043,500 1,700,000 SBA Communications Corp., Cl A(1) 6,533,038 57,103,000 ------------ ------------ 40,723,006 153,146,500 Consumer Products (1.25%) 289,228 Bare Escentuals, Inc.(1) 8,147,677 9,877,136 1,575,000 Church & Dwight Co., Inc. 58,038,013 76,324,500 ------------ ------------ 66,185,690 86,201,636 Consumer Services (2.11%) 1,350,000 Chemed Corp.(5) 51,815,547 89,491,500 1,200,000 Morningstar, Inc.(1) 26,102,655 56,430,000 ------------ ------------ 77,918,202 145,921,500 Distribution (0.37%) 649,900 Pool Corp. 24,432,758 25,365,597 Education (3.23%) 3,700,000 DeVry, Inc.(5) 62,024,339 125,874,000 100,000 New Oriental Education & Technology Group, Inc., ADR(1)(2) 3,638,128 5,372,000 700,000 Strayer Education, Inc. 57,859,739 92,197,000 ------------ ------------ 123,522,206 223,443,000 BARON GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Energy Services (7.08%) 550,000 Carrizo Oil & Gas, Inc.(1) $ 21,415,856 $ 22,808,500 400,000 Core Laboratories N.V.(1)(2) 19,417,274 40,676,000 800,000 Dresser-Rand Group, Inc.(1) 19,155,509 31,600,000 3,100,000 Encore Acquisition Co.(1)(5) 51,499,113 86,180,000 1,450,000 EXCO Resources, Inc.(1) 21,822,215 25,288,000 1,100,000 FMC Technologies, Inc.(1) 25,188,996 87,142,000 1,050,000 Helmerich & Payne, Inc. 24,393,872 37,191,000 637,500 PHI, Inc.(1) 18,390,290 18,991,125 487,500 Range Resources Corp. 8,333,342 18,237,375 440,000 SEACOR Holdings, Inc.(1) 17,768,097 41,078,400 850,000 SunPower Corp., Cl A(1) 24,439,815 53,592,500 650,000 Whiting Petroleum Corp.(1) 22,550,925 26,338,000 ------------ ------------ 274,375,304 489,122,900 Financial Services- Asset Management (2.16%) 1,950,000 Cohen & Steers, Inc. 38,355,016 84,727,500 650,000 Eaton Vance Corp. 11,290,146 28,717,000 325,000 GAMCO Investors, Inc., Cl A 6,570,340 18,216,250 290,000 Nuveen Investments, Inc., Cl A 7,748,686 18,023,500 ------------ ------------ 63,964,188 149,684,250 Financial Services-Banking (5.76%) 725,000 Cathay General Bancorp 26,411,085 24,316,500 850,000 Center Financial Corp.(5) 18,904,650 14,382,000 800,000 Central Pacific Financial Corp. 28,316,418 26,408,000 1,300,000 First Republic Bank 40,949,132 69,758,000 850,000 Frontier Financial Corp. 20,424,642 19,150,500 1,150,000 Glacier Bancorp, Inc. 27,758,884 23,402,500 1,700,000 SVB Financial Group(1) 85,140,344 90,287,000 4,500,000 UCBH Holdings, Inc. 89,138,096 82,215,000 1,100,000 Virginia Commerce Bancorp, Inc.(1) 21,386,464 18,601,007 1,000,000 Western Alliance Bancorporation(1) 34,285,616 29,850,000 ------------ ------------ 392,715,331 398,370,507 Financial Services- Brokerage & Exchanges (3.16%) 794,400 Evercore Partners, Inc., Cl A 21,275,777 23,649,288 850,000 FCStone Group, Inc.(1) 25,031,146 48,713,500 4,800,000 Jefferies Group, Inc. 73,517,475 129,504,000 1,000,000 Thomas Weisel Partners Group, Inc.(1) 18,884,402 16,650,000 ------------ ------------ 138,708,800 218,516,788 Financial Services-Insurance (1.73%) 1,650,000 Arch Capital Group, Ltd.(1)(2) 51,045,431 119,691,000 Financial Services-Miscellaneous (0.94%) 1,400,000 National Financial Partners Corp. 73,758,637 64,834,000 Food and Agriculture (1.08%) 1,400,000 Ralcorp Holdings, Inc.(1)(5) 53,671,573 74,830,000 Gaming Services (0.66%) 1,300,000 Scientific Games Corp., Cl A(1) 32,010,748 45,435,000 Healthcare Facilities (3.34%) 2,000,000 Community Health Systems, Inc.(1) 49,858,101 80,900,000 500,000 Emeritus Corp.(1) 15,500,000 15,490,000 1,800,000 Manor Care, Inc. 33,815,991 117,522,000 375,000 Skilled Healthcare Group, Inc., Cl A(1) 5,933,715 5,816,250 750,000 Sun Healthcare Group, Inc.(1) 8,628,484 10,867,500 ------------ ------------ 113,736,291 230,595,750 BARON GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Common Stocks (continued) ------------------------------------------------------------------------------- Healthcare Products (1.79%) 1,950,000 Depomed, Inc.(1) $ 11,124,661 $ 9,301,500 2,000,000 Edwards Lifesciences Corp.(1) 59,602,587 98,680,000 850,000 PSS World Medical, Inc.(1) 17,338,615 15,487,000 ------------ ------------ 88,065,863 123,468,500 Healthcare Services (5.22%) 1,050,000 Charles River Laboratories Intl., Inc.(1) 30,142,796 54,201,000 800,000 Gen-Probe, Inc.(1) 33,725,299 48,336,000 1,600,000 Healthways, Inc.(1) 72,538,241 75,792,000 7,000,000 HLTH Corp.(1) (formerly Emdeon Corp.) 99,144,718 98,070,000 160,000 IDEXX Laboratories, Inc.(1) 9,006,923 15,140,800 800,000 NightHawk Radiology Holdings, Inc.(1) 14,085,701 14,440,000 1,525,000 Odyssey HealthCare, Inc.(1) 17,605,293 18,086,500 850,000 PRA International(1) 19,360,963 21,505,000 400,700 VCA Antech, Inc.(1) 11,830,115 15,102,383 ------------ ------------ 307,440,049 360,673,683 Healthcare Services-Insurance (3.03%) 2,500,000 AMERIGROUP Corp.(1) 42,527,141 59,500,000 1,500,000 Centene Corp.(1) 12,638,874 32,130,000 1,300,000 WellCare Health Plans, Inc.(1) 54,613,234 117,663,000 ------------ ------------ 109,779,249 209,293,000 Hotels and Lodging (1.09%) 1,800,000 Choice Hotels Intl., Inc. 34,847,213 71,136,000 500,000 Kingdom Hotel Investments(1)(2) 4,545,612 4,500,000 ------------ ------------ 39,392,825 75,636,000 Information Technology Services (0.58%) 1,000,000 CheckFree Corp.(1) 18,042,917 40,200,000 Infrastructure (1.62%) 2,300,000 AECOM Technology Corp.(1) 48,656,345 57,063,000 1,325,000 Macquarie Infrastructure Co. LLC 46,607,850 54,961,000 ------------ ------------ 95,264,195 112,024,000 Leisure (0.31%) 700,000 Allegiant Travel Co.(1) 22,277,201 21,518,000 Media (1.07%) 600,000 Central European Media Enterprises, Ltd., Cl A(1)(2) 29,408,871 58,548,000 800,000 Netflix, Inc.(1) 21,071,796 15,512,000 ------------ ------------ 50,480,667 74,060,000 Medical Equipment (0.55%) 275,000 Intuitive Surgical, Inc.(1) 4,029,661 38,161,750 Real Estate (3.55%) 4,950,000 CB Richard Ellis Group, Inc., Cl A(1) 35,102,586 180,675,000 925,000 CoStar Group, Inc.(1) 39,770,736 48,914,000 1,000,000 HFF, Inc., Cl A(1) 18,032,791 15,510,000 ------------ ------------ 92,906,113 245,099,000 Real Estate-Home Building (1.22%) 1,050,000 Brookfield Homes Corp. 35,280,148 30,544,500 750,000 Hovnanian Enterprises, Inc., Cl A(1) 18,292,979 12,397,500 625,000 M.D.C. Holdings, Inc. 31,144,412 30,225,000 650,000 Standard Pacific Corp. 16,609,100 11,394,500 ------------ ------------ 101,326,639 84,561,500 BARON GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Real Estate-REITs (1.97%) 1,200,000 Acadia Realty Trust $ 32,945,822 $ 31,140,000 130,000 Alexander's, Inc.(1) 26,714,253 52,552,500 1,416,667 CBRE Realty Finance, Inc. 21,054,283 16,844,171 2,429,800 Spirit Finance Corp. 27,767,443 35,377,888 -------------- -------------- 108,481,801 135,914,559 Recreation and Resorts (10.87%) 2,750,000 Ameristar Casinos, Inc. 64,727,233 95,535,000 200,000 Boyd Gaming Corp. 5,345,491 9,838,000 3,166,666 Fontainebleau Resorts, LLC(1)(3) 34,999,992 37,999,992 1,500,000 Gaylord Entertainment Co.(1) 70,857,828 80,460,000 1,450,000 Isle of Capri Casinos, Inc.(1) 30,683,260 34,742,000 7,400,000 Kerzner Intl. Holdings, Ltd., Cl A(1)(2)(3) 74,000,000 74,000,000 575,000 Penn National Gaming, Inc.(1) 16,140,523 34,551,750 2,850,000 Pinnacle Entertainment, Inc.(1) 89,931,510 80,227,500 1,700,000 Station Casinos, Inc. 39,029,399 147,560,000 708,000 Steiner Leisure, Ltd.(1) 34,021,905 34,776,960 1,250,000 Vail Resorts, Inc.(1) 21,897,070 76,087,500 537,677 Wynn Resorts, Ltd.(1)(3) 7,863,993 45,813,037 -------------- -------------- 489,498,204 751,591,739 Restaurants (2.81%) 1,350,000 California Pizza Kitchen, Inc.(1) 23,047,680 28,998,000 91,193 Chipotle Mexican Grill, Inc., Cl A(1) 3,795,605 7,776,939 500,000 P.F. Chang's China Bistro, Inc.(1) 22,165,448 17,600,000 700,000 Panera Bread Co., Cl A(1) 25,727,519 32,242,000 700,000 Peet's Coffee & Tea, Inc.(1)(5) 15,273,681 17,241,000 3,675,000 The Cheesecake Factory, Inc.(1)(5) 85,772,814 90,111,000 -------------- -------------- 175,782,747 193,968,939 Retail-Specialty Stores (10.44%) 875,000 Blue Nile, Inc.(1)(5) 26,058,719 52,850,000 1,200,000 Cabela's, Inc., Cl A(1) 26,601,533 26,556,000 3,300,000 CarMax, Inc.(1) 34,948,928 84,150,000 2,500,000 Dick's Sporting Goods, Inc.(1) 86,074,246 145,425,000 1,375,000 DSW, Inc., Cl A(1) 33,833,387 47,877,500 900,000 Guitar Center, Inc.(1) 51,761,075 53,829,000 2,900,000 J. Crew Group, Inc.(1) 93,937,342 156,861,000 2,700,000 Select Comfort Corp.(1)(5) 38,016,795 43,794,000 625,000 Tractor Supply Co.(1) 24,758,679 32,531,250 3,650,000 United Auto Group, Inc. 74,505,181 77,708,500 -------------- -------------- 490,495,885 721,582,250 Software (0.70%) 1,900,000 Allscripts Healthcare Solutions, Inc.(1) 52,349,487 48,412,000 Transportation (2.19%) 225,000 Aircastle, Ltd. 7,547,620 8,957,250 450,000 American Railcar Industries, Inc. 11,494,779 17,550,000 175,000 Florida East Coast Industries, Inc. 9,217,829 14,521,500 1,863,750 Genesee & Wyoming, Inc., Cl A(1) 28,652,530 55,614,300 550,000 Landstar System, Inc. 13,610,267 26,537,500 1,050,000 UTI Worldwide, Inc.(2) 24,275,698 28,129,500 -------------- -------------- 94,798,723 151,310,050 Utility Services (1.94%) 2,000,000 ITC Holdings Corp. 57,396,900 81,260,000 1,627,498 Southern Union Co. 19,474,278 53,040,160 -------------- -------------- 76,871,178 134,300,160 -------------- -------------- Total Common Stocks 4,276,689,560 6,390,870,408 -------------- -------------- BARON GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value -------------------------------------------------------------------------------- Convertible Preferred Stocks (0.20%) -------------------------------------------------------------------------------- Pharmaceutical (0.16%) 750,000 Reliant Pharmaceuticals LLC, Series D(1)(3) $ 15,000,000 $ 11,250,000 Transportation (0.04%) 234,375 EOS Airlines, Inc., Cl C(1)(3) 2,500,000 2,500,000 -------------- -------------- Total Convertible Preferred Stocks 17,500,000 13,750,000 -------------- -------------- Units -------------------------------------------------------------------------------- Limited Partnerships (0.01%) -------------------------------------------------------------------------------- Recreation and Resorts 8 Island Global Yachting IV L.P.(1)(3)(6) 803,570 803,600 -------------- -------------- Principal Amount -------------------------------------------------------------------------------- Corporate Bonds (1.47%) -------------------------------------------------------------------------------- Recreation and Resorts $26,000,000 Wynn Resorts, Ltd. 6.00% Sub. Conv.Deb. due 07/15/2015 18,789,353 101,383,750 -------------- -------------- -------------------------------------------------------------------------------- Short Term Investments (6.28%) -------------------------------------------------------------------------------- Short Term Money Market Instruments (3.39%) $93,999,999 Chesham Finance Ltd. 5.32% due 07/02/2007 93,999,999 93,999,999 139,937,700 Citigroup Funding, Inc. 5.34% due 07/02/2007 139,937,700 139,937,700 -------------- -------------- 233,937,699 233,937,699 U.S. Government Agencies (2.89%) 24,990,000 Federal Agricultural Mortgage Corp. 4.80% due 07/02/2007 24,990,000 24,990,000 142,914,407 Federal Home Loan Bank 4.75% due 07/02/2007 142,914,407 142,914,407 32,016,189 Federal Home Loan Bank 4.80% due 07/02/2007 32,016,189 32,016,189 -------------- -------------- 199,920,596 199,920,596 -------------- -------------- Total Short Term Investments 433,858,295 433,858,295 -------------- -------------- Total Investments (100.42%) $4,747,640,778 ,940,666,053 ============== Liabilities Less Cash and Other Assets (-0.42%) (29,015,811) -------------- Net Assets (Equivalent to $53.34 per share based on 129,571,377 shares outstanding) $6,911,650,242 ============== -------- % Represents percentage of net assets. (1) Non-income producing securities. (2) Foreign domiciled corporation. (3) Restricted and Fair Valued Securities. (4) Represents securities or a portion thereof, in segregated custodian account. (5) See Note 3 regarding "affiliated" investments. (6) To date, invested $803,570 out of a capital commitment of $5,000,000. BARON SMALL CAP FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Common Stocks (98.55%) ------------------------------------------------------------------------------- Advertising Services (2.78%) 1,500,000 National CineMedia, Inc.(1) $ 36,466,285 $ 42,015,000 725,000 R.H. Donnelley Corp.(1) 26,979,391 54,940,500 ------------ ------------ 63,445,676 96,955,500 Apparel (2.48%) 1,250,000 Carter's, Inc.(1) 20,386,238 32,425,000 750,000 Fossil, Inc.(1) 14,949,784 22,117,500 2,250,000 Quiksilver, Inc.(1) 16,553,036 31,792,500 ------------ ------------ 51,889,058 86,335,000 Building Materials (1.97%) 1,400,000 Eagle Materials, Inc. 26,645,471 68,670,000 Business Services (1.95%) 600,000 ChoicePoint, Inc.(1) 5,730,647 25,470,000 176,200 First Advantage Corp., Cl A(1) 2,804,449 4,054,362 1,462,500 Iron Mountain, Inc.(1) 10,010,523 38,215,125 ------------ ------------ 18,545,619 67,739,487 Communications (5.63%) 1,750,000 American Tower Corp., Cl A(1)(4) 6,402,929 73,500,000 2,750,000 SBA Communications Corp., Cl A(1) 27,026,677 92,372,500 1,500,000 Time Warner Telecom, Inc., Cl A(1) 24,518,321 30,150,000 ------------ ------------ 57,947,927 196,022,500 Consulting (1.21%) 650,000 Corporate Executive Board Co. 27,774,515 42,191,500 Consumer Products (2.47%) 1,250,000 ACCO Brands Corp.(1) 29,516,194 28,812,500 1,625,000 DTS, Inc.(1)(5) 34,251,425 35,376,250 850,000 Marvel Entertainment, Inc.(1) 17,858,200 21,658,000 ------------ ------------ 81,625,819 85,846,750 Distribution (1.24%) 1,400,000 Beacon Roofing Supply, Inc.(1) 35,539,449 23,786,000 500,000 Pool Corp. 18,573,871 19,515,000 ------------ ------------ 54,113,320 43,301,000 Education (3.43%) 503,783 Capella Education Co.(1) 17,804,990 23,189,132 3,000,000 SkillSoft PLC, ADR(1)(2) 21,536,422 27,870,000 444,000 Strayer Education, Inc. 37,452,157 58,479,240 391,100 Universal Technical Institute, Inc.(1) 9,513,116 9,930,029 ------------ ------------ 86,306,685 119,468,401 Energy Services (5.46%) 2,500,000 Covanta Holding Corp.(1) 38,709,340 61,625,000 300,000 Linn Energy LLC(3) 10,050,000 9,379,350 100,000 Linn Energy LLC 3,654,627 3,291,000 857,500 PHI, Inc.(1) 24,669,136 25,544,925 1,429,146 SunPower Corp., Cl A(1) 43,322,934 90,107,655 ------------ ------------ 120,406,037 189,947,930 Environmental (1.50%) 500,000 Clean Harbors, Inc.(1) 26,048,277 24,710,000 1,000,000 Nalco Holding Co. 17,014,844 27,450,000 ------------ ------------ 43,063,121 52,160,000 BARON SMALL CAP FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value -------------------------------------------------------------------------------- Financial Services- Asset Management (1.04%) 330,000 Freedom Acquisition Holdings, Inc.(1) $ 3,634,740 $ 3,633,300 1,300,000 Freedom Acquisition Holdings, Inc., Units(1)(6) 14,215,000 18,525,000 250,000 GAMCO Investors, Inc., Cl A 4,356,166 14,012,500 ------------ ------------ 22,205,906 36,170,800 Financial Services-Insurance (0.42%) 200,000 Arch Capital Group, Ltd.(1)(2) 5,515,966 14,508,000 Financial Services-Miscellaneous (1.79%) 2,500,000 KKR Financial Holdings LLC (formerly KKR Financial Corp.) 64,200,446 62,275,000 Gaming Services (0.25%) 1,300,000 Cash Systems, Inc.(1)(5) 8,346,000 8,840,000 Government Services (5.43%) 1,500,000 AeroVironment, Inc.(1)(5) 34,673,956 30,915,000 1,700,000 FLIR Systems, Inc.(1) 30,680,984 78,625,000 2,500,000 L-1 Identity Solutions, Inc.(1) 43,586,514 51,125,000 1,620,000 Stanley, Inc.(1)(5) 24,669,381 28,544,400 ------------ ------------ 133,610,835 189,209,400 Healthcare Facilities (3.30%) 1,400,000 Brookdale Senior Living, Inc. 34,154,494 63,798,000 1,300,000 Emeritus Corp.(1) 40,300,000 40,274,000 700,000 Skilled Healthcare Group, Inc., Cl A(1) 11,010,619 10,857,000 ------------ ------------ 85,465,113 114,929,000 Healthcare Services (1.48%) 475,000 Gen-Probe, Inc.(1) 21,507,724 28,699,500 700,000 NightHawk Radiology Holdings, Inc.(1) 13,542,498 12,635,000 400,000 PRA International(1) 8,776,118 10,120,000 ------------ ------------ 43,826,340 51,454,500 Healthcare Services-Devices (0.54%) 500,000 Accuray, Inc.(1) 10,574,911 11,090,000 350,000 TomoTherapy, Inc.(1) 7,697,414 7,672,000 ------------ ------------ 18,272,325 18,762,000 Hotels and Lodging (3.04%) 4,000,000 Kingdom Hotel Investments(1)(2) 35,970,820 36,000,000 13,290,000 Mandarin Oriental International, Ltd.(2) 26,293,673 29,636,700 750,000 Orient-Express Hotels, Ltd., Cl A 28,730,511 40,050,000 ------------ ------------ 90,995,004 105,686,700 Leisure (0.95%) 1,650,000 MarineMax, Inc.(1)(5) 43,423,427 33,033,000 Machinery & Electronics (2.06%) 1,000,000 Flowserve Corp. 31,808,128 71,600,000 Manufacturing (4.70%) 850,000 Actuant Corp., Cl A 29,848,705 53,601,000 932,900 HEICO Corp., Cl A 25,105,956 32,791,435 557,000 Measurement Specialties, Inc.(1) 13,077,384 13,189,760 1,585,500 TransDigm Group, Inc.(1) 43,624,958 64,149,330 ------------ ------------ 111,657,003 163,731,525 Media (1.20%) 1,800,000 CKX, Inc.(1) 21,481,595 24,876,000 2,400,000 Radio One, Inc., Cl D(1) 27,663,129 16,944,000 ------------ ------------ 49,144,724 41,820,000 BARON SMALL CAP FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value -------------------------------------------------------------------------------- Common Stocks (continued) -------------------------------------------------------------------------------- Medical Equipment (4.88%) 2,250,700 American Medical Systems Holdings, Inc.(1) $ 39,846,806 $ 40,602,628 1,600,000 Immucor, Inc.(1) 6,462,595 44,752,000 425,000 Intuitive Surgical, Inc.(1) 6,162,500 58,977,250 950,000 Kensey Nash Corp.(1)(5) 27,605,710 25,469,500 ------------ ------------ 80,077,611 169,801,378 Minerals & Mining (1.63%) 175,000 Haynes International, Inc.(1) 13,818,800 14,775,250 575,000 Kaiser Aluminum Corp.(1) 36,144,629 41,906,000 ------------ ------------ 49,963,429 56,681,250 Miscellaneous (0.66%) 1,571,000 Boulder Specialty Brands, Inc.(1)(5) 14,914,134 15,631,450 525,000 Boulder Specialty Brands, Inc., Units(1)(5)(6) 5,795,750 7,376,250 ------------ ------------ 20,709,884 23,007,700 Real Estate (3.36%) 2,500,000 CB Richard Ellis Group, Inc. Cl A(1) 24,312,255 91,250,000 1,650,000 HFF, Inc., Cl A(1) 30,542,767 25,591,500 ------------ ------------ 54,855,022 116,841,500 Real Estate-Home Building (1.04%) 1,250,000 Brookfield Homes Corp. 30,392,566 36,362,500 Real Estate-REITs (1.33%) 1,200,000 Spirit Finance Corp. 12,908,250 17,472,000 1,750,000 U-Store-It Trust 35,964,813 28,682,500 ------------ ------------ 48,873,063 46,154,500 Recreation and Resorts (10.69%) 2,000,000 Ameristar Casinos, Inc. 64,188,948 69,480,000 1,400,000 Gaylord Entertainment Co.(1) 43,928,825 75,096,000 2,884,000 Great Wolf Resorts, Inc.(1)(5) 53,906,108 41,097,000 3,500,000 Kerzner Intl. Holdings, Ltd., Cl A(1)(2)(3) 35,000,000 35,000,000 1,401,700 Penn National Gaming, Inc.(1) 40,093,264 84,228,153 750,000 Wynn Resorts, Ltd.(1) 5,817,058 67,267,500 ------------ ------------ 242,934,203 372,168,653 Restaurants (3.92%) 2,250,000 AFC Enterprises, Inc.(1)(5) 36,931,249 38,902,500 300,000 Panera Bread Co., Cl A(1) 8,173,117 13,818,000 3,000,000 Texas Roadhouse, Inc., Cl A(1) 38,035,045 38,370,000 1,850,000 The Cheesecake Factory, Inc.(1) 44,427,838 45,362,000 ------------ ------------ 127,567,249 136,452,500 Retail-Consumer Staples (3.02%) 3,000,000 Iconix Brand Group, Inc.(1)(5) 49,681,177 66,660,000 1,500,000 NuCO2, Inc.(1)(5) 36,204,728 38,505,000 ------------ ------------ 85,885,905 105,165,000 Retail-Specialty Stores (6.58%) 100,000 A.C. Moore Arts & Crafts, Inc.(1) 2,215,329 1,961,000 1,250,000 Build-A-Bear Workshop, Inc.(1)(5) 35,358,280 32,675,000 2,564,856 Casual Male Retail Group, Inc.(1)(5) 14,983,513 25,905,046 675,000 Design Within Reach, Inc.(1) 9,586,917 4,016,250 1,250,000 DSW, Inc., Cl A(1) 29,475,468 43,525,000 750,000 Guitar Center, Inc.(1) 36,791,851 44,857,500 700,000 J. Crew Group, Inc.(1) 23,290,356 37,863,000 1,800,000 United Auto Group, Inc. 34,504,900 38,322,000 ------------ ------------ 186,206,614 229,124,796 BARON SMALL CAP FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Common Stocks (continued) ------------------------------------------------------------------------------- Transportation (5.12%) 1,500,000 Aircastle, Ltd. 44,286,116 59,715,000 250,000 American Commercial Lines, Inc.(1) 2,625,000 6,512,500 600,000 Florida East Coast Industries, Inc. 32,278,199 49,788,000 600,000 Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., ADR(1)(2) 12,630,181 16,482,000 500,000 Grupo Aeroportuario del Pacifico, S.A.B. de C.V.(2) 16,830,373 24,660,000 400,000 Grupo Aeroportuario del Sureste, S.A.B. de C.V.(2) 11,806,186 21,076,000 -------------- -------------- 120,456,055 178,233,500 -------------- -------------- Total Common Stocks 2,388,156,066 3,430,651,270 -------------- -------------- ------------------------------------------------------------------------------- Warrants (0.35%) ------------------------------------------------------------------------------- Apparel (0.32%) 1,981,100 Endeavor Acquisition Corp. Warrants Exp 12/14/2009(1) 5,013,594 11,173,404 Miscellaneous (0.01%) 129,000 Boulder Specialty Brands, Inc. Warrants Exp 12/16/2009(1)(5) 323,748 528,900 Retail-Specialty Stores (0.02%) 100,000 Casual Male Retail Group, Inc. Warrants Exp 07/02/2010(1)(3)(5) 49,000 534,000 -------------- -------------- Total Warrants 5,386,342 12,236,304 -------------- -------------- Principal Amount ------------------------------------------------------------------------------- Short Term Investments (2.43%) ------------------------------------------------------------------------------- Short Term Money Market Instruments (1.28%) $14,599,999 Chesham Finance Ltd. 5.32% due 07/02/2007 14,599,999 14,599,999 29,986,650 Citigroup Funding, Inc. 5.34% due 07/02/2007 29,986,650 29,986,650 -------------- -------------- 44,586,649 44,586,649 U.S. Government Agencies (1.15%) 39,984,167 Federal Home Loan Bank 4.75% due 07/02/2007 39,984,167 39,984,167 -------------- -------------- Total Short Term Investments 84,570,816 84,570,816 -------------- -------------- Total Investments (101.33%) $2,478,113,224 3,527,458,390 ============== Liabilities Less Cash and Other Assets (-1.33%) (46,219,083) -------------- Net Assets (Equivalent to $25.16 per share based on 138,373,885 shares outstanding) $3,481,239,307 ============== -------- % Represents percentage of net assets. (1) Non-income producing securities. (2) Foreign domiciled corporation. (3) Restricted and Fair Valued Securities. (4) Represents securities or a portion thereof, in segregated custodian account. (5) See Note 3 regarding "affiliated" investments. (6) One unit consists of one common share and one warrant. ADR American Depositary Receipt. BARON iOPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value -------------------------------------------------------------------------------- Common Stocks (93.08%) -------------------------------------------------------------------------------- Advertising Services (8.19%) 80,000 aQuantive, Inc.(1) $ 1,608,093 $ 5,104,000 12,000 Google, Inc., Cl A(1) 1,572,728 6,280,560 115,000 National CineMedia, Inc.(1) 2,867,602 3,221,150 ----------- ----------- 6,048,423 14,605,710 Business Services (8.11%) 20,000 FactSet Research Systems, Inc. 1,235,173 1,367,000 40,000 IHS, Inc., Cl A(1) 1,711,541 1,840,000 385,000 LivePerson, Inc.(1) 2,166,149 2,059,750 125,000 Monster Worldwide, Inc.(1) 2,406,523 5,137,500 232,500 NaviSite, Inc.(1) 1,354,292 1,767,000 90,000 Switch & Data Facilities Company, Inc.(1) 1,530,000 1,727,100 25,000 Taleo Corp., Cl A(1) 496,250 563,250 ----------- ----------- 10,899,928 14,461,600 Communications (17.55%) 95,000 American Tower Corp., Cl A(1) 258,400 3,990,000 80,000 Clearwire Corp., Cl A(1) 1,899,009 1,954,400 95,000 Cogent Communications Group, Inc.(1) 820,923 2,837,650 82,000 Equinix, Inc.(1) 2,818,997 7,500,540 100,000 MetroPCS Communications, Inc.(1) 2,300,000 3,304,000 60,000 NeuStar, Inc., Cl A(1) 1,859,719 1,738,200 115,000 SBA Communications Corp., Cl A(1) 1,290,179 3,862,850 450,000 Terremark Worldwide, Inc.(1) 2,488,229 2,902,500 159,000 Time Warner Telecom, Inc., Cl A(1) 2,681,647 3,195,900 ----------- ----------- 16,417,103 31,286,040 Communications Equipment (5.62%) 79,000 QUALCOMM, Inc. 2,983,090 3,427,810 33,000 Research in Motion, Ltd.(1)(2) 2,731,479 6,599,670 ----------- ----------- 5,714,569 10,027,480 Computer Technology (3.49%) 51,000 Apple, Inc.(1) 2,570,902 6,224,040 Consulting (1.79%) 130,000 Gartner, Inc.(1) 3,319,108 3,196,700 Consumer Products (1.39%) 115,000 Shutterfly, Inc.(1) 1,736,679 2,478,250 Consumer Services (4.06%) 86,000 eBay, Inc.(1) 1,150,197 2,767,480 65,000 priceline.com, Inc.(1) 1,345,503 4,468,100 ----------- ----------- 2,495,700 7,235,580 Energy Services (0.68%) 83,000 Medis Technologies, Ltd.(1) 1,866,494 1,219,270 BARON iOPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Financial Services-Brokerage & Exchanges (13.01%) 335,000 Charles Schwab Corp. $ 3,665,646 $ 6,874,200 10,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 1,829,806 5,343,600 230,000 E*TRADE Financial Corp.(1) 1,557,926 5,080,700 12,000 IntercontinentalExchange, Inc.(1) 1,769,774 1,774,200 87,000 optionsXpress Holdings, Inc. 1,629,542 2,232,420 162,500 TradeStation Group, Inc.(1) 1,744,754 1,893,125 ------------ ------------ 12,197,448 23,198,245 Financial Services-Insurance (1.08%) 108,000 Admiral Group plc(2) 1,189,310 1,928,070 Gaming Services (1.32%) 67,500 Scientific Games Corp., Cl A(1) 2,322,414 2,359,125 Healthcare Services (0.75%) 95,000 HLTH Corp.(1) (formerly Emdeon Corp.) 1,350,681 1,330,950 Information Technology Services (1.48%) 75,000 VeriFone Holdings, Inc.(1) 1,624,150 2,643,750 Leisure (3.58%) 120,000 Activision, Inc.(1) 1,653,134 2,240,400 87,500 Electronic Arts, Inc.(1) 4,662,803 4,140,500 ------------ ------------ 6,315,937 6,380,900 Media (13.16%) 30,000 Central European Media Enterprises, Ltd., Cl A(1)(2) 2,110,846 2,927,400 200,700 Comcast Corp., Cl A(1) 3,438,499 5,611,572 15,000 Lamar Advertising Co., Cl A(1) 940,114 941,400 82,000 Netflix, Inc.(1) 2,438,297 1,589,980 185,000 News Corp., Cl A 3,269,588 3,923,850 130,000 TechTarget, Inc.(1) 1,765,950 1,670,500 70,000 The Knot, Inc.(1) 1,556,396 1,413,300 101,500 Time Warner, Inc. 1,480,641 2,135,560 120,000 Yahoo!, Inc.(1) 2,120,135 3,255,600 ------------ ------------ 19,120,466 23,469,162 Real Estate (3.83%) 62,500 CoStar Group, Inc.(1) 2,304,320 3,305,000 785,000 Move, Inc.(1) 2,314,380 3,516,800 ------------ ------------ 4,618,700 6,821,800 Retail-Specialty Stores (0.92%) 35,000 Best Buy Co., Inc. 1,521,320 1,633,450 Software (3.07%) 72,500 Allscripts Healthcare Solutions, Inc.(1) 1,866,699 1,847,300 35,000 DivX, Inc.(1) 560,000 525,000 185,000 Nuance Communications, Inc.(1) 2,338,346 3,095,050 ------------ ------------ 4,765,045 5,467,350 ------------ ------------ Total Common Stocks 106,094,377 165,967,472 ------------ ------------ BARON iOPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value -------------------------------------------------------------------------------- Warrants (0.00%) -------------------------------------------------------------------------------- Media 200,000 Loudeye Corp. Warrants Exp 12/23/2010(1)(3) $ 0 $ 0 ------------ ------------ Principal Amount -------------------------------------------------------------------------------- Short Term Investments (6.39%) -------------------------------------------------------------------------------- Short Term Money Market Instruments (2.80%) $4,997,775 Citigroup Funding, Inc. 5.34% due 07/02/2007 4,997,775 4,997,775 U.S. Government Agencies (3.59%) 6,397,467 Federal Home Loan Bank 4.75% due 07/02/2007 6,397,467 6,397,467 ------------ ------------ Total Short Term Investments 11,395,242 11,395,242 ------------ ------------ Total Investments (99.47%) $117,489,619 177,362,714 ============ Cash and Other Assets Less Liabilities (0.53%) 942,178 ------------ Net Assets (Equivalent to $12.23 per share based on 14,573,559 shares outstanding) $178,304,892 ============ -------- % Represents percentage of net assets. (1) Non-income producing securities. (2) Foreign domiciled corporation. (3) Restricted and Fair Valued Securities. BARON FIFTH AVENUE GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------ Common Stocks (98.91%) ------------------------------------------------------------------------------ Advertising Services (1.29%) 3,000 Google, Inc., Cl A(1) $ 301,280 $ 1,570,140 Business Services (5.07%) 55,000 Automatic Data Processing, Inc. 2,195,680 2,665,850 20,000 FedEx Corp. 2,162,303 2,219,400 50,000 Iron Mountain, Inc.(1) 1,023,614 1,306,500 ----------- ----------- 5,381,597 6,191,750 Communications (2.75%) 80,000 American Tower Corp., Cl A(1) 1,824,691 3,360,000 Computer Technology (5.38%) 21,000 Apple, Inc.(1) 913,796 2,562,840 136,000 Microsoft Corp. 3,086,984 4,007,920 ----------- ----------- 4,000,780 6,570,760 Consumer Products (13.40%) 35,000 Cadbury Schweppes plc, ADR(2) 1,318,807 1,900,500 54,000 Diageo plc, ADR(2) 3,632,159 4,498,740 72,000 Groupe Danone, ADR(2) 1,166,105 1,170,720 60,000 PepsiCo, Inc. 3,621,494 3,891,000 80,000 The Procter & Gamble Co. 4,445,044 4,895,200 ----------- ----------- 14,183,609 16,356,160 Consumer Services (0.34%) 20,000 The Western Union Co. 433,523 416,600 Distribution (1.27%) 37,000 Fastenal Co. 1,379,438 1,548,820 Energy Services (8.39%) 44,000 Diamond Offshore Drilling, Inc. 3,545,121 4,468,640 42,000 Transocean, Inc.(1) 3,280,896 4,451,160 22,000 XTO Energy, Inc. 1,342,167 1,322,200 ----------- ----------- 8,168,184 10,242,000 Financial Services- Asset Management (3.67%) 43,000 AllianceBernstein Holding L.P. 2,511,755 3,744,870 25,000 The Blackstone Group L.P.(1) 775,000 731,750 ----------- ----------- 3,286,755 4,476,620 Financial Services-Banking (4.65%) 133,000 Wells Fargo & Company 4,729,731 4,677,610 13,000 Zions Bancorporation 903,403 999,830 ----------- ----------- 5,633,134 5,677,440 Financial Services-Brokerage & Exchanges (8.56%) 150,000 Charles Schwab Corp. 1,728,189 3,078,000 5,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 1,121,168 2,671,800 15,000 The Bear Stearns Companies, Inc. 1,952,888 2,100,000 12,000 The Goldman Sachs Group, Inc. 1,833,121 2,601,000 ----------- ----------- 6,635,366 10,450,800 BARON FIFTH AVENUE GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Shares Cost Value ------------------------------------------------------------------------------- Financial Services-Insurance (1.80%) 10 Berkshire Hathaway, Inc., Cl A(1) $ 901,365 $ 1,094,750 34,000 W. R. Berkley Corp. 829,142 1,106,360 ----------- ------------ 1,730,507 2,201,110 Financial Services-Miscellaneous (3.86%) 77,000 American Express Co. 3,997,245 4,710,860 Healthcare Services-Insurance (5.06%) 60,000 UnitedHealth Group, Inc. 2,462,467 3,068,400 39,000 WellPoint, Inc.(1) 2,388,104 3,113,370 ----------- ------------ 4,850,571 6,181,770 Hotels and Lodging (1.26%) 23,000 Starwood Hotels & Resorts Worldwide, Inc. 1,313,981 1,542,610 Media (10.31%) 165,000 Comcast Corp., Cl A(1) 3,915,009 4,613,400 25,000 Lamar Advertising Co., Cl A(1) 1,422,379 1,569,000 80,000 News Corp., Cl A 1,231,907 1,696,800 54,000 The Walt Disney Co. 1,297,051 1,843,560 90,000 Time Warner, Inc. 1,702,878 1,893,600 36,000 Yahoo!, Inc.(1) 936,690 976,680 ----------- ------------ 10,505,914 12,593,040 Pharmaceutical (1.01%) 20,000 Johnson & Johnson 1,200,573 1,232,400 Real Estate-REITs (0.36%) 4,000 Vornado Realty Trust 192,626 439,360 Recreation and Resorts (5.20%) 37,000 Las Vegas Sands Corp.(1) 1,179,726 2,826,430 42,000 Marriott International, Inc., Cl A 1,313,188 1,816,080 19,000 Wynn Resorts, Ltd.(1) 1,247,457 1,704,110 ----------- ------------ 3,740,371 6,346,620 Retail--Consumer Staples (9.06%) 75,000 CVS Caremark Corp. 2,492,083 2,733,750 100,000 Macy's, Inc. (formerly Federated Department Stores, Inc.) 3,820,049 3,978,000 43,000 Target Corp. 1,968,604 2,734,800 42,000 Whole Foods Market, Inc. 2,218,013 1,608,600 ----------- ------------ 10,498,749 11,055,150 Retail-Specialty Stores (6.22%) 33,000 Bed Bath & Beyond, Inc.(1) 1,158,446 1,187,670 55,000 Coach, Inc.(1) 1,232,076 2,606,450 63,000 The Home Depot, Inc. 2,419,107 2,479,050 25,000 Tiffany & Co. 785,845 1,326,500 ----------- ------------ 5,595,474 7,599,670 ----------- ------------ Total Common Stocks 94,854,368 120,763,680 ----------- ------------ BARON FIFTH AVENUE GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (Continued) -------------------------------------------------------------------------------- JUNE 30, 2007 (UNAUDITED) Principal Amount COST VALUE -------------------------------------------------------------------------------- Short Term Investments (0.98%) -------------------------------------------------------------------------------- Short Term Money Market Instruments (0.49%) $600,000 Chesham Finance Ltd. 5.32% due 07/02/2007 $ 600,000 $ 600,000 U.S. Government Agencies (0.49%) 599,762 Federal Home Loan Bank 4.75% due 07/02/2007 599,762 599,762 ----------- ------------ Total Short Term Investments 1,199,762 1,199,762 ----------- ------------ Total Investments (99.89%) $96,054,130 121,963,442 =========== Cash and Other Assets Less Liabilities (0.11%) 130,216 ------------ Net Assets (Equivalent to $13.57 per share based on 9,000,339 shares outstanding) $122,093,658 ============ -------- % Represents percentage of net assets. (1) Non-income producing securities. (2) Foreign domiciled corporation. ADR American Depositary Receipt. Notes to Schedules of Investments (Unaudited) Baron Investment Funds Trust ( the "Trust") is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company established as a Massachusetts business trust on February 19, 1987. The Trust currently offers five series (individually a "Fund" and collectively the "Funds"): Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron iOpportunity Fund, and Baron Fifth Avenue Growth Fund. Prior to October 22, 2004, the name of the Trust was Baron Asset Fund. (1) Security Valuation. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Funds use the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Funds are priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether a current price is stale, there is recent news, the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Funds on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Funds with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. (2) Cost of Investments for Income Tax Purposes. At June 30, 2007 the net unrealized appreciation (depreciation) based on the cost of investments for income tax purposes was as follows:
Baron Baron Asset Baron Growth Baron Small Cap Baron iOpportunity Fifth Avenue Growth Fund Fund Fund Fund Fund -------------------------------------------------------------------------------------- Cost of investments $2,553,655,800 $4,766,707,123 $2,478,762,534 $119,900,820 $96,784,694 ============== ============== ============== ============ =========== Unrealized appreciation 1,886,866,781 2,298,747,060 1,145,707,666 60,996,134 26,119,889 Unrealized depreciation (53,174,624) (124,788,130) (97,011,810) (3,534,240) (941,141) -------------- -------------- -------------- ------------ ----------- Net unrealized appreciation $1,833,692,157 $2,173,958,930 $1,048,695,856 $ 57,461,894 $25,178,748 ============== ============== ============== ============ ===========
Transactions in "Affiliated" Companies(1) BARON ASSET FUND
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value Name of Issuer Sept. 30, 2006 and Additions Reductions Jun. 30, 2007 Jun. 30, 2007 -------------------------------------------------------------------------------------------------------------- Alexander's, Inc. 314,000 314,000 $126,934,500 Apollo International, Inc. S-A CV Pfd. 105,264 105,264 1,000,008 Vail Resorts, Inc. 3,000,000 3,000,000 182,610,000 ------------ Total investment in "affiliates" (7.09% of Net Assets) $310,544,508 ============
-------- (1) An "Affiliated" Company, as defined in the Investment Company Act of 1940, is a company in which a Fund held 5% or more of the company's outstanding voting securities at any time during the nine months ended June 30, 2007. Transactions in "Affiliated" Companies(1) BARON GROWTH FUND
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value Name of Issuer Sept. 30, 2006 and Additions Reductions Jun. 30, 2007 Jun. 30, 2007 ------------------------------------------------------------------------------------------------------------------------ AMERIGROUP, Corp.(2) 3,700,000 150,000 1,350,000 2,500,000 $ -- Blue Nile, Inc. 875,000 875,000 52,850,000 Centene Corp.(2) 3,000,000 1,500,000 1,500,000 -- Center Financial Corp. 850,000 850,000 14,382,000 Chemed Corp. 1,350,000 1,350,000 89,491,500 DeVry, Inc. 3,700,000 3,700,000 125,874,000 Encore Acquisition Co. 3,400,000 300,000 3,100,000 86,180,000 Peet's Coffee & Tea, Inc. 700,000 700,000 17,241,000 Ralcorp Holdings, Inc. 1,400,000 1,400,000 74,830,000 Select Comfort Corp. 2,700,000 2,700,000 43,794,000 Symyx Technologies, Inc.(2) 1,650,000 250,000 1,400,000 -- The Cheesecake Factory, Inc. 3,021,200 653,800 3,675,000 90,111,000 ------------ Total investment in "affiliates" (8.61% of Net Assets) $594,753,500 ============
-------- (1) An "Affiliated" Company, as defined in the Investment Company Act of 1940, is a company in which a Fund held 5% or more of the company's outstanding voting securities at any time during the nine months ended June 30, 2007. (2) As of June 30, 2007, no longer an affiliate. Transactions in "Affiliated" Companies(1) BARON SMALL CAP FUND
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value Name of Issuer Sept. 30, 2006 and Additions Reductions Jun. 30, 2007 Jun. 30, 2007 -------------------------------------------------------------------------------------------------------------- AFC Enterprises, Inc. 2,250,000 2,250,000 $ 38,902,500 AeroVironment, Inc. 1,500,000 1,500,000 30,915,000 Boulder Specialty Brands, Inc. 1,571,000 1,571,000 15,631,450 Boulder Specialty Brands, Inc., Units 525,000 525,000 7,376,250 Boulder Specialty Brands, Inc., Warrants Exp 12/16/2009 129,000 129,000 528,900 Build-A-Bear Workshop, Inc. 1,250,000 1,250,000 32,675,000 Cash Systems, Inc. 1,500,000 200,000 1,300,000 8,840,000 Casual Male Retail Group, Inc.(3) 1,157,503 1,407,353 2,564,856 25,905,046 Casual Male Retail Group, Inc., Warrants Exp 04/26/2007(4) 1,407,353 1,407,353 -- -- Casual Male Retail Group, Inc., Warrants Exp 07/02/2010 100,000 100,000 534,000 DTS, Inc. 1,625,000 1,625,000 35,376,250 Great Wolf Resorts, Inc. 2,750,000 134,000 2,884,000 41,097,000 Iconix Brand Group, Inc. 2,500,000 500,000 3,000,000 66,660,000 Kensey Nash Corp. 950,000 950,000 25,469,500 MarineMax, Inc. 1,650,000 1,650,000 33,033,000 Measurement Specialties, Inc.(2) 1,000,000 443,000 557,000 -- NuCO2, Inc. 1,250,000 250,000 1,500,000 38,505,000 Stanley, Inc. 1,620,000 1,620,000 28,544,400 ------------ Total investment in "affiliates" (12.35% of Net Assets) $429,993,296 ============
-------- (1) An "Affiliated" Company, as defined in the Investment Company Act of 1940, is a company in which a Fund held 5% or more of the company's outstanding voting securities at any time during the nine months ended June 30, 2007. (2) As of June 30, 2007, no longer an affiliate. (3) Increase due to exercise of warrants. (4) Decrease due to exercise of warrants. For additional information regarding the Funds' other significant accounting policies, please refer to the Funds' most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. Item 2. Controls and Procedures. (a) The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. Item 3. Exhibits. (a) Separate certifications for the principal executive officer and the principal financial officer of the Registrant, as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Baron Investment Funds Trust By: /s/Ronald Baron ------------------------------------------ Ronald Baron Chief Executive Officer Date: August 28, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/Ronald Baron ------------------------------------------ Ronald Baron Chief Executive Officer By: /s/ Peggy Wong ------------------------------------------ Peggy Wong Treasurer and Chief Financial Officer Date: August 28, 2007