BARON INVESTMENT FUNDS TRUST

N-CSRS 1 d463484dncsrs.htm BARON INVESTMENT FUNDS TRUST BARON INVESTMENT FUNDS TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-5032

BARON INVESTMENT FUNDS TRUST f/k/a

BARON ASSET FUND

(Exact Name of Registrant as Specified in Charter)

767 Fifth Avenue, 49th Floor

New York, NY 10153

(Address of Principal Executive Offices) (Zip Code)

Patrick M. Patalino, General Counsel

c/o Baron Investment Funds Trust

767 Fifth Avenue, 49th Floor

New York, 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: March 31, 2023

Item 1. Reports to Stockholders.

Baron Asset Fund

Baron Growth Fund

Baron Small Cap Fund

Baron Opportunity Fund

Baron Fifth Avenue Growth Fund

Baron Discovery Fund

Baron Durable Advantage Fund

March 31, 2023

Baron Funds^®

Baron Investment Funds Trust

Semi-Annual Financial Report


Baron Asset Fund
Ticker Symbols:
Retail Shares: BARAX Institutional Shares: BARIX R6 Shares: BARUX
Performance			2
Top Ten Holdings			3
Sector Breakdown			3
Management’s Discussion of Fund Performance			3
Baron Growth Fund
Ticker Symbols:
Retail Shares: BGRFX Institutional Shares: BGRIX R6 Shares: BGRUX
Performance			4
Top Ten Holdings			5
Sector Breakdown			5
Management’s Discussion of Fund Performance			5
Baron Small Cap Fund
Ticker Symbols:
Retail Shares: BSCFX Institutional Shares: BSFIX R6 Shares: BSCUX
Performance			6
Top Ten Holdings			7
Sector Breakdown			7
Management’s Discussion of Fund Performance			7
Baron Opportunity Fund
Ticker Symbols:
Retail Shares: BIOPX Institutional Shares: BIOIX R6 Shares: BIOUX
Performance			8
Top Ten Holdings			9
Sector Breakdown			9
Management’s Discussion of Fund Performance			9
Baron Fifth Avenue Growth Fund
Ticker Symbols:
Retail Shares: BFTHX Institutional Shares: BFTIX R6 Shares: BFTUX
Performance			10
Top Ten Holdings			11
Sector Breakdown			11
Management’s Discussion of Fund Performance			11
Baron Discovery Fund
Ticker Symbols:
Retail Shares: BDFFX Institutional Shares: BDFIX R6 Shares: BDFUX
Performance			12
Top Ten Holdings			13
Sector Breakdown			13
Management’s Discussion of Fund Performance			13
Baron Durable Advantage Fund
Ticker Symbols:
Retail Shares: BDAFX Institutional Shares: BDAIX R6 Shares: BDAUX
Performance			14
Top Ten Holdings			15
Sector Breakdown			15
Management’s Discussion of Fund Performance			15
Financial Statements
Statements of Net Assets			16
Statements of Assets and Liabilities			29
Statements of Operations			31
Statements of Changes in Net Assets			33
Notes to Financial Statements			36
Financial Highlights			48
Fund Expenses			55

DEAR BARON INVESTMENT FUNDS SHAREHOLDER:

In this report, you will find unaudited financial statements for Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund (the Funds) for the six months ended March 31, 2023. The U.S. Securities and Exchange Commission (the SEC) requires mutual funds to furnish these statements semi-annually to their shareholders. We hope you find these statements informative and useful.

We thank you for choosing to join us as fellow shareholders in Baron Funds. We will continue to work hard to justify your confidence.

Sincerely,

Ronald Baron

Chief Executive Officer

May 19, 2023

Linda S. Martinson

Chairman, President and

Chief Operating Officer

May 19, 2023

Peggy Wong

Treasurer and

Chief Financial Officer

May 19, 2023

This Semi-Annual Financial Report is for the Baron Investment Funds Trust, which currently has seven series: Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund. If you are interested in Baron Select Funds, which contains the Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron WealthBuilder Fund, Baron Health Care Fund, Baron FinTech Fund, Baron New Asia Fund, and Baron Technology Fund series, please visit the Funds’ website at www.BaronFunds.com or contact us at 1-800-99BARON.

The Funds’ Proxy Voting Policy is available without charge and can be found on the Funds’ website at www.BaronFunds.com, by clicking on the “Regulatory Documents” link at the bottom left corner of the homepage or by calling 1-800-99BARON and on the SEC’s website at www.sec.gov. The Funds’ most current proxy voting record, Form N-PX, is also available on the Funds’ website and on the SEC’s website.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov. Schedules of portfolio holdings current to the most recent quarter are also available on the Funds’ website.

Some of the comments contained in this report are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as “estimate,” “may,” “expect,” “should,” “could,” “believe,” “plan” and other similar terms. We cannot promise future returns and our opinions are a reflection of our best judgment at the time this report is compiled.

The views expressed in this report reflect those of BAMCO, Inc. (BAMCO or the Adviser) only through the end of the period stated in this report. The views are not intended as recommendations or investment advice to any person reading this report and are subject to change at any time without notice based on market and other conditions.

Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. For more complete information about Baron Funds, including charges and expenses, call, write or go to www.BaronFunds.com for a prospectus or summary prospectus. Read them carefully before you invest or send money. This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds, unless accompanied or preceded by the Funds’ current prospectus or summary prospectus.

LOGO


Baron Asset Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON ASSET FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL MIDCAP GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Ten Years		Since Inception (June 12, 1987)
Baron Asset Fund — Retail Shares^{1, 2}		18.07%		(8.88)%		12.29%		9.15%		11.19%		11.17%
Baron Asset Fund — Institutional Shares^{1, 2, 4}		18.21%		(8.65)%		12.57%		9.43%		11.49%		11.29%
Baron Asset Fund — R6 Shares^{1, 2, 4}		18.19%		(8.66)%		12.57%		9.43%		11.48%		11.29%
Russell Midcap Growth Index¹		16.67%		(8.52)%		15.20%		9.07%		11.17%		9.99%	³
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		12.24%		9.93%

*	Not Annualized.

The Russell Midcap^TM Growth Index measures the performance of medium-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index.

Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower.

³	For the period June 30, 1987 to March 31, 2023.

⁴

Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher.


March 31, 2023 (Unaudited)		Baron Asset Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
Gartner, Inc.		9.1%
IDEXX Laboratories, Inc.		7.4%
Mettler-Toledo International, Inc.		6.0%
ANSYS, Inc.		4.1%
Verisk Analytics, Inc.		4.0%
CoStar Group, Inc.		3.7%
FactSet Research Systems Inc.		3.4%
Arch Capital Group Ltd.		3.3%
Vail Resorts, Inc.		3.1%
Verisign, Inc.		2.8%

		47.0%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Asset Fund¹ gained 18.07%, while the Russell Midcap Growth Index gained 16.67% and the S&P 500 Index gained 15.62%.

Baron Asset Fund invests primarily in medium-sized growth companies for the long term, using a value-oriented purchase discipline. The Fund purchases companies that we believe have sustainable competitive advantages, strong financial characteristics, and exceptional management; and operate in industries with favorable growth characteristics.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank (SVB) rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Health Care, Information Technology, and Industrials contributed the most. Communication Services detracted.

Veterinary diagnostics leader IDEXX Laboratories, Inc. was the top contributor on results that beat consensus and multiple expansion. The post-pandemic rate of decline of veterinary visits seems to have stabilized. IDEXX’s competitive trends are outstanding, and we expect new innovations and sales force expansion to be meaningful contributors to growth. We see increasing evidence that secular trends around pet ownership and pet care spending have been structurally accelerated, which should help support IDEXX’s long-term growth rate.

Online brokerage firm The Charles Schwab Corp. was the top detractor following the bankruptcy of SVB and the resulting weakness in financials. Despite running a much different business than SVB, Schwab faced pressure as investors moved uninvested cash balances into higher-yielding money market funds, requiring Schwab to raise high-cost external funding. We retain conviction given accelerating net inflows, with Schwab gathering over $75 billion in new assets in just the first two months of 2023. We are encouraged by Schwab’s exceptional client loyalty, robust organic growth, and industry-leading operating expense per client assets.

While inflation and employment levels are still well above the Fed’s target levels, we are starting to see evidence of lower inflation and slowing growth. If rates stabilize and eventually decline and business remains firm, the environment for equities will be supportive. However, there is much investor consternation as to the degree of the slowdown and the time in which rates need to rise or stay elevated to reach the Fed’s targets.

As long-term investors, we favor leading companies in their industry with secular growth drivers, strong competitive positions, and exceptional management teams. We believe our companies will revert to historic growth rates and earnings will increase. Stocks should also revert to trading at appropriate multiples. We believe higher earnings and multiples will result in strong returns for the portfolio.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

Sector levels are provided from the Global Industry Classification Standard (GICS), developed and exclusively owned by MSCI Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties.

¹	Performance information reflects results of Retail Shares.


Baron Growth Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON GROWTH FUND (RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Ten Years		Since Inception (December 31, 1994)
Baron Growth Fund — Retail Shares^{1, 2}		20.59%		(3.65)%		19.57%		12.01%		11.48%		12.84%
Baron Growth Fund — Institutional Shares^{1, 2, 3}		20.75%		(3.40)%		19.87%		12.30%		11.77%		12.99%
Baron Growth Fund — R6 Shares^{1, 2, 3}		20.75%		(3.40)%		19.87%		12.30%		11.77%		12.99%
Russell 2000 Growth Index¹		10.46%		(10.60)%		13.36%		4.26%		8.49%		7.46%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		12.24%		10.13%

*	Not Annualized.

The Russell 2000^® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index.


March 31, 2023 (Unaudited)		Baron Growth Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
MSCI Inc.		11.3%
Arch Capital Group Ltd.		8.2%
FactSet Research Systems Inc.		6.6%
Gartner, Inc.		6.6%
Iridium Communications Inc.		6.5%
Vail Resorts, Inc.		6.2%
CoStar Group, Inc.		4.7%
Choice Hotels International, Inc.		4.6%
ANSYS, Inc.		4.4%
Kinsale Capital Group, Inc.		4.0%

		63.2%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Growth Fund¹ increased 20.59%, while the Russell 2000 Growth Index increased 10.46% and the S&P 500 Index increased 15.62%.

Baron Growth Fund invests primarily in small-sized U.S. growth companies for the long term. Through independent research, we utilize an investment approach that we believe allows us to look at a business’s fundamental characteristics and beyond the current market environment. We invest based on the potential profitability of a business at what we believe are attractive valuations.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Financials, Information Technology, Health Care, and Consumer Discretionary contributed the most. No sector detracted.

MSCI Inc. contributed the most. Shares of this leading provider of investment decision support tools increased on resilient earnings results and a cautiously optimistic outlook for 2023. MSCI also benefited from improved performance in the global equity markets, which most directly affects its asset-based fee revenue. We retain long-term conviction, as MSCI owns strong “all weather” franchises and remains well positioned to benefit from numerous secular tailwinds in the investment community.

Douglas Emmett, Inc. detracted the most. Shares of this office REIT declined due to weak financial results and guidance. Business fundamentals are challenged, driven by slower leasing activity, elevated vacancy rates, and diminished pricing power. Higher interest expenses are also negatively impacting earnings. We remain optimistic given the company’s irreplaceable portfolio in supply-constrained markets and manageable debt levels, and we view the current valuation as highly discounted.

We believe no one can accurately and consistently predict short-term market movements. Instead, we remain focused on identifying and researching well-managed unique businesses with significant barriers to entry and compelling growth prospects, investing in them at attractive prices, and holding them for the long term.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Small Cap Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON SMALL CAP FUND(RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Ten Years		Since Inception (September 30, 1997)
Baron Small Cap Fund — Retail Shares^{1, 2}		13.95%		(10.74)%		16.75%		8.12%		9.61%		9.69%
Baron Small Cap Fund — Institutional Shares^{1, 2, 3}		14.09%		(10.51)%		17.05%		8.41%		9.89%		9.84%
Baron Small Cap Fund — R6 Shares^{1, 2, 3}		14.09%		(10.52)%		17.06%		8.40%		9.89%		9.84%
Russell 2000 Growth Index¹		10.46%		(10.60)%		13.36%		4.26%		8.49%		5.84%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		12.24%		7.91%

*	Not Annualized.


March 31, 2023 (Unaudited)		Baron Small Cap Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
Gartner, Inc.		5.4%
Kinsale Capital Group, Inc.		3.5%
ICON Plc		3.5%
ASGN Incorporated		3.4%
Floor & Decor Holdings, Inc.		3.2%
SiteOne Landscape Supply, Inc.		3.2%
Red Rock Resorts, Inc.		2.9%
Vertiv Holdings Co		2.6%
Guidewire Software, Inc.		2.4%
Chart Industries, Inc.		2.2%

		32.2%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Small Cap Fund¹ increased 13.95%, while the Russell 2000 Growth Index increased 10.46% and the S&P 500 Index increased 15.62%.

Baron Small Cap Fund invests primarily in small-cap growth companies for the long term. The Fund invests in what we believe are well-run small-cap growth businesses that can be purchased at prices that represent a significant discount to our assessment of future value.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Consumer Discretionary, Industrials, Information Technology, and Health Care contributed the most. No sector detracted.

Gartner, Inc. was the top contributor. Shares of this provider of syndicated research increased on strong business conditions, with Gartner’s research business compounding at double-digit levels. We expect sustained revenue growth and renewed focus on cost control to drive margin expansion and enhanced free cash flow generation. The company’s balance sheet is in excellent shape and can support aggressive repurchases and bolt-on acquisitions, in our view.

Grid Dynamics Holdings, Inc. was the top detractor. Shares of this provider of outsourced software development to business customers fell on subdued guidance and investor concerns about macroeconomic uncertainty weighing on client demand. We continue to own the stock because we believe the company has unique capabilities and a long runway for growth.

Longer term, we believe strongly that our companies will revert to their historic growth rates and earnings will be considerably higher. Stocks will revert to trading at appropriate multiples, which, for the most part, are higher than present, irrespective of where interest rates settle out. We believe the combination of higher earnings and higher multiples will result in higher stock prices and strong returns for the portfolio.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Opportunity Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON OPPORTUNITY FUND^† (RETAIL SHARES)

IN RELATION TO THE RUSSELL 3000 GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Ten Years		Since Inception (February 29, 2000)
Baron Opportunity Fund — Retail Shares^{1, 2}		12.46%		(19.91)%		15.07%		14.56%		13.74%		8.15%
Baron Opportunity Fund — Institutional Shares^{1, 2, 3}		12.61%		(19.70)%		15.37%		14.87%		14.03%		8.32%
Baron Opportunity Fund — R6 Shares^{1, 2, 3}		12.60%		(19.73)%		15.35%		14.86%		14.04%		8.32%
Russell 3000 Growth Index¹		16.49%		(10.88)%		18.23%		13.02%		14.16%		5.99%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		12.24%		6.90%

*	Not Annualized.

†	The Fund’s 3-, 5-, and 10-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.

The Russell 3000^® Growth Index measures the performance of those companies classified as growth among the largest 3,000 U.S. companies, and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index.

Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser may reimburse certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower.

Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher.


March 31, 2023 (Unaudited)		Baron Opportunity Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
Microsoft Corporation		14.4%
NVIDIA Corporation		6.5%
Tesla, Inc.		6.2%
Amazon.com, Inc.		5.8%
Visa Inc.		3.4%
Gartner, Inc.		3.1%
Mastercard Incorporated		2.9%
Alphabet Inc.		2.9%
ServiceNow, Inc.		2.8%
CoStar Group, Inc.		2.8%

		50.7%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Opportunity Fund¹ increased 12.46%, while the Russell 3000 Growth Index increased 16.49% and the S&P 500 Index increased 15.62%.

Baron Opportunity Fund invests primarily in U.S. growth companies that we believe are driving or benefiting from innovation through development of pioneering, transformative, or technologically advanced products and services. The Fund invests in high-growth businesses of any market capitalization, selected for their capital appreciation potential.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Information Technology, Financials, and Industrials contributed the most. Consumer Discretionary holdings detracted.

NVIDIA Corporation contributed the most. Shares of this fabless semiconductor soared on developments in generative AI as evidenced by the release of ChatGPT and GPT-4. These technologies hold the promise of enabling significant productivity gains across domains such as content creation, coding, and even biologic discovery. We believe NVIDIA’s end-to-end AI platform and leading share in gaming, data centers, and autonomous machines, along with the size of these markets, will enable the company to benefit from durable growth for years to come.

Rivian Automotive, Inc. was the top detractor. Shares of this electric vehicle manufacturer sank on elevated liquidity risks due to outsized cash outflows during its early production stage. Investor confidence in unit economics and execution was also challenged by macroeconomic pressure on the industry. We retain conviction. Despite supply-chain complexities, Rivian’s monthly production rate has grown seven-fold since late 2021. Positive product reviews, an integrated technology approach, and unique partnerships point to an attractive long-term opportunity.

We believe no one can accurately and consistently predict short-term market movements. Instead, we focus on identifying the secular growth trends and the companies with durable competitive advantages, profitable business models, and long-term-oriented managers driving or riding these trends. We establish and monitor price targets for holdings and target companies using projections of revenues, earnings, and free cash flow and appropriate multiples, and invest at prices where we believe we can produce substantial returns.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Fifth Avenue Growth Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON FIFTH AVENUE GROWTH FUND^†

(RETAIL SHARES) IN RELATION TO THE RUSSELL 1000 GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Ten Years		Since Inception (April 30, 2004)
Baron Fifth Avenue Growth Fund — Retail Shares^{1, 2}		11.07%		(25.18)%		2.90%		4.45%		10.57%		7.79%
Baron Fifth Avenue Growth Fund — Institutional Shares^{1, 2, 3}		11.22%		(24.99)%		3.16%		4.72%		10.85%		7.99%
Baron Fifth Avenue Growth Fund — R6 Shares^{1, 2, 3}		11.18%		(25.03)%		3.15%		4.71%		10.85%		7.99%
Russell 1000 Growth Index¹		16.88%		(10.90)%		18.58%		13.66%		14.59%		10.69%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		12.24%		9.34%

*	Not Annualized.

^†	The Fund’s 3-, 5-, and 10-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.

The Russell 1000^® Growth Index measures the performance of large-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large cap U.S. companies. The indexes and the Fund are with dividends reinvested, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index.

Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower.


March 31, 2023 (Unaudited)		Baron Fifth Avenue Growth Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
NVIDIA Corporation		7.7%
Amazon.com, Inc.		7.4%
ServiceNow, Inc.		6.3%
Mastercard Incorporated		5.4%
Snowflake Inc.		5.0%
Tesla, Inc.		4.9%
Meta Platforms, Inc.		4.9%
Intuitive Surgical, Inc.		4.7%
Shopify Inc.		4.2%
CrowdStrike Holdings, Inc.		3.9%

		54.2%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Fifth Avenue Growth Fund¹ increased 11.07%, while the Russell 1000 Growth Index increased 16.88% and the S&P 500 Index increased 15.62%.

Baron Fifth Avenue Growth Fund focuses on identifying and investing in what we believe are unique companies with durable competitive advantages and the ability to redeploy capital at high

rates of return. The portfolio is constructed on a bottom-up basis, with the quality of ideas and conviction level the most important determinants of the size of each investment. We expect our highest conviction businesses to have meaningful weight in the portfolio.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Information Technology, Financials, and Health Care contributed the most. Consumer Discretionary holdings detracted.

ZoomInfo Technologies Inc. was the top detractor. Shares of this provider of business intelligence software fell on a weak top-line outlook due to macroeconomic uncertainty. We continue to believe ZoomInfo can become a much larger company over time as it grows into its $70 billion-plus total addressable market with the potential to expand into marketing and talent acquisition software and other adjacencies.

Our goal remains to maximize long-term returns without taking significant risks of a permanent loss of capital. We are optimistic about the prospects of our investments and continue searching for new ideas while remaining patient and investing only when we believe companies are trading significantly below their intrinsic values.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Discovery Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON DISCOVERY FUND^† (RETAIL SHARES)

IN RELATION TO THE RUSSELL 2000 GROWTH INDEX AND THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Since Inception (September 30, 2013)
Baron Discovery Fund — Retail Shares^{1, 2}		11.36%		(13.98)%		15.94%		9.92%		12.03%
Baron Discovery Fund — Institutional Shares^{1, 2}		11.45%		(13.81)%		16.24%		10.20%		12.31%
Baron Discovery Fund —R6 Shares^{1, 2, 3}		11.49%		(13.77)%		16.23%		10.21%		12.31%
Russell 2000 Growth Index¹		10.46%		(10.60)%		13.36%		4.26%		7.17%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		11.98%

*	Not Annualized.

^†	The Fund’s 3- and 5-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future.

Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser may reimburse certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower.

³	Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares.


March 31, 2023 (Unaudited)		Baron Discovery Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
Kinsale Capital Group, Inc.		4.6%
Boyd Gaming Corporation		3.6%
Advanced Energy Industries, Inc.		3.2%
Floor & Decor Holdings, Inc.		3.0%
Rexford Industrial Realty, Inc.		3.0%
Axon Enterprise, Inc.		2.9%
Axonics, Inc.		2.7%
SiteOne Landscape Supply, Inc.		2.4%
Kratos Defense & Security Solutions, Inc.		2.4%
indie Semiconductor, Inc.		2.4%

		30.2%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Discovery Fund¹ increased 11.36%, while the Russell 2000 Growth Index increased 10.46% and the S&P 500 Index increased 15.62%.

Baron Discovery Fund invests primarily in small-sized U.S. companies which at time of purchase have market capitalizations up to the largest market cap stock in the Russell 2000 Growth Index at June 30, or companies with market capitalizations up to $2.5 billion, whichever is larger.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Information Technology, Industrials, and Consumer Discretionary contributed the most. Health Care holdings detracted.

Axon Enterprise Inc. was the top contributor. Shares of this public safety-focused technology company rose on robust earnings and a favorable long-term outlook. Growth in Axon’s higher-margin Cloud business and Sensors segment reflects strong demand for the company’s digital evidence management, productivity, and real-time operations platforms, as well as Axon Fleet in-car cameras. With line of sight to more than 20% CAGR, an improving margin profile with the growth of software solutions, and a management team that has demonstrated an ability to innovate quickly, sell to customers, and manage costs effectively, Axon has solidified itself as a best-in-class company and a compelling investment in the public safety space.

CareDx, Inc. was the top detractor. Shares of this diagnostics company that facilitates pre-transplant donor matches and post-transplant rejection monitoring fell on reimbursement headwinds as CareDx shifts into commercial payer markets. Uncertainty around Medicare’s reimbursement policy raised by the news that it was seeking feedback from physicians on usage also pressured shares. We exited our investment.

No one can accurately and consistently predict short-term market movements, in our experience. Instead, we stay focused on identifying and investing in our competitively advantaged, emerging growth businesses for the long term. By staying true to our time-tested investment process, we believe our shareholders will be rewarded when the inevitable economic recovery begins.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Durable Advantage Fund (Unaudited)		March 31, 2023

COMPARISON OF THE CHANGE IN VALUE OF $10,000 INVESTMENT IN BARON DURABLE ADVANTAGE FUND

(RETAIL SHARES) IN RELATION TO THE S&P 500 INDEX

LOGO


AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED MARCH 31, 2023
	Six Months*		One Year		Three Years		Five Years		Since Inception (December 29, 2017)
Baron Durable Advantage Fund — Retail Shares^{1, 2}		21.35%		(2.95)%		17.92%		12.11%		11.77%
Baron Durable Advantage Fund — Institutional Shares^{1, 2}		21.53%		(2.70)%		18.19%		12.38%		12.03%
Baron Durable Advantage Fund — R6 Shares^{1, 2}		21.52%		(2.70)%		18.19%		12.38%		12.03%
S&P 500 Index¹		15.62%		(7.73)%		18.60%		11.19%		10.47%

*	Not Annualized.

The S&P 500 Index measures the performance of 500 widely held large cap U.S. companies. The index and the Fund are with dividends reinvested, which positively impact the performance results. The index is unmanaged. The index performance is not Fund performance; one cannot invest directly into an index.

Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower.


March 31, 2023 (Unaudited)		Baron Durable Advantage Fund

TOP TEN HOLDINGS AS OF MARCH 31, 2023


	Percent of Net Assets*
Microsoft Corporation		9.1%
Meta Platforms, Inc.		7.8%
Amazon.com, Inc.		5.3%
Visa Inc.		4.5%
Arch Capital Group Ltd.		4.5%
UnitedHealth Group Incorporated		4.4%
Accenture plc		4.3%
NVIDIA Corporation		3.9%
Intuit Inc.		3.9%
Monolithic Power Systems, Inc.		3.8%

		51.4%

SECTOR BREAKDOWN AS OF MARCH 31, 2023^†*

(as a percentage of net assets)

LOGO

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the six months ended March 31, 2023, Baron Durable Advantage Fund¹ increased 21.35% while the S&P 500 Index increased 15.62%.

Baron Durable Advantage Fund invests mainly in large-sized U.S. companies with competitive advantages and market capitalizations no smaller than the top 90^th percentile by market capitalization of the S&P 500 Index at June 30, or companies with

market capitalizations above $10 billion, whichever is smaller. The Fund emphasizes businesses with excess free cash flow that can be returned to shareholders.

After a challenging 12 months, equities regained some ground during the six-month period, although the path higher was turbulent. Investor sentiment remained focused on the Federal Reserve, and the markets largely rose and fell in accordance with the Fed’s next perceived move. Despite easing supply-chain constraints, falling energy and commodity prices, and the reopening of the Chinese economy, inflation readings stayed stubbornly high. In early March, the sudden failure of Silicon Valley Bank rattled the markets, but regulators quickly intervened to prevent contagion, and equities rebounded on the belief the Fed would slow rate hikes to reduce the risk of a banking crisis.

Information Technology, Financials, and Communication Services contributed the most. Consumer Discretionary holdings detracted.

Meta Platforms, Inc. was the top contributor. Shares of the world’s largest social network increased on decisive cost discipline actions, improving adoption of new advertising products, and its work in generative AI. Meta is the mega-cap technology company most focused on cost cutting, while user engagement remains healthy and newer advertising formats are reportedly picking up steam. Longer term, we believe Meta will utilize its leadership in mobile advertising, massive user base, innovative culture, and technological scale to perform, with further monetization opportunities ahead.

Amazon.com, Inc. was the top detractor. Shares of the world’s largest retailer and cloud services provider fell on weak guidance in margins and Cloud. We believe Amazon is well positioned in the medium term to improve profitability and sustain premium growth. Longer term, Amazon has substantially more room to grow in e-commerce, where it has less than 15% penetration; and Cloud, where it is the clear leader in a vast and growing market.

We believe investing in great businesses at attractive valuations will enable us to earn excess risk-adjusted returns over the long term. We look for companies with strong and durable competitive advantages, track records of successful capital allocation, high returns on invested capital, and high free-cash-flow generation, a significant portion of which is returned to shareholders as dividends or share repurchases.

*	Individual weights may not sum to 100% (or displayed total) due to rounding.

^†

¹	Performance information reflects results of Retail Shares.


Baron Asset Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (96.85%)
Communication Services (1.73%)
		Advertising (0.80%)
	594,000	The Trade Desk, Inc., Cl A¹	$	11,554,017	$	36,180,540

		Cable & Satellite (0.31%)
	175,000	Liberty Broadband Corp., Cl C¹		12,253,924		14,297,500

		Interactive Media & Services (0.62%)
	1,133,000	ZoomInfo Technologies, Inc.¹		24,349,619		27,996,430

	Total Communication Services			48,157,560		78,474,470


Consumer Discretionary (6.36%)
		Home Improvement Retail (0.50%)
	230,000	Floor & Decor Holdings, Inc., Cl A¹		20,284,647		22,590,600

		Hotels, Resorts & Cruise Lines (2.75%)
	546,442	Choice Hotels International, Inc.		5,198,084		64,037,538
	543,233	Hyatt Hotels Corp., Cl A¹		16,817,762		60,728,017

				22,015,846		124,765,555

		Leisure Facilities (3.11%)
	603,538	Vail Resorts, Inc.		11,683,688		141,034,760

	Total Consumer Discretionary			53,984,181		288,390,915


Financials (12.81%)
		Asset Management & Custody Banks (0.59%)
	237,514	T. Rowe Price Group, Inc.		5,729,988		26,815,331

		Financial Exchanges & Data (5.77%)
	370,725	FactSet Research Systems, Inc.		19,898,421		153,884,240
	166,267	MarketAxess Holdings, Inc.		17,839,339		65,058,614
	30,000	MSCI, Inc.		7,783,774		16,790,700
	326,189	Tradeweb Markets, Inc., Cl A		11,978,713		25,775,455

				57,500,247		261,509,009

		Insurance Brokers (0.82%)
	158,421	Willis Towers Watson PLC²		19,439,430		36,813,872

		Investment Banking & Brokerage (2.29%)
	1,750,936	The Charles Schwab Corp.		1,542,899		91,714,028
	60,000	LPL Financial Holdings, Inc.		13,576,561		12,144,000

				15,119,460		103,858,028

		Property & Casualty Insurance (3.30%)
	2,203,444	Arch Capital Group Ltd.¹		7,933,936		149,547,744

		Transaction & Payment Processing Services (0.04%)
	34,217	Fidelity National Information Services, Inc.		1,885,058		1,859,010

	Total Financials			107,608,119		580,402,994


Health Care (26.87%)
		Biotechnology (0.34%)
	41,366	argenx SE, ADR^1,2		13,431,821		15,412,144

		Health Care Equipment (9.18%)
	682,000	DexCom, Inc.¹		54,311,293		79,234,760
	673,630	IDEXX Laboratories, Inc.¹		12,186,829		336,868,890

				66,498,122		416,103,650

		Health Care Supplies (1.78%)
	215,418	The Cooper Companies, Inc.		6,713,299		80,428,465


Shares			Cost		Value
Common Stocks (continued)

Health Care (continued)

		Health Care Technology (1.86%)
	459,386	Veeva Systems, Inc., Cl A¹	$	27,115,596	$	84,430,553

		Life Sciences Tools & Services (13.71%)
	1,524,944	Bio-Techne Corporation		37,146,743		113,135,595
	200,000	ICON PLC^1,2		43,086,335		42,718,000
	192,552	Illumina, Inc.¹		8,187,333		44,777,968
	179,117	Mettler-Toledo International, Inc.¹		10,665,962		274,086,624
	181,000	Repligen Corp.¹		30,985,147		30,473,160
	334,404	West Pharmaceutical Services, Inc.		14,419,530		115,860,954

				144,491,050		621,052,301

	Total Health Care			288,249,888		1,217,427,113


Industrials (14.49%)
		Construction & Engineering (0.72%)
	197,000	Quanta Services, Inc.		31,147,339		32,828,080

		Data Processing & Outsourced Services (0.96%)
	771,076	SS&C Technologies Holdings, Inc.		20,933,204		43,542,662

		Environmental & Facilities Services (1.36%)
	1,643,418	Rollins, Inc.		24,597,482		61,677,477

		Industrial Machinery & Supplies & Components (1.74%)
	340,760	IDEX Corp.		24,525,881		78,725,783

		Research & Consulting Services (9.71%)
	2,439,930	CoStar Group, Inc.¹		59,005,227		167,989,181
	1,438,500	TransUnion		77,172,718		89,388,390
	951,206	Verisk Analytics, Inc.		23,582,787		182,498,383

				159,760,732		439,875,954

	Total Industrials			260,964,638		656,649,956


Information Technology (30.60%)
		Application Software (15.03%)
	557,856	ANSYS, Inc.¹		19,939,586		185,654,477
	176,026	Aspen Technology, Inc.¹		32,258,986		40,287,071
	1,636,093	Ceridian HCM Holding, Inc.¹		64,026,865		119,794,729
	150,000	Fair Isaac Corp.¹		63,616,939		105,403,500
	1,421,809	Guidewire Software, Inc.¹		77,473,157		116,659,428
	257,192	Roper Technologies, Inc.		26,184,327		113,341,943

				283,499,860		681,141,148

		Electronic Components (1.63%)
	900,000	Amphenol Corp., Cl A		42,881,684		73,548,000

		Internet Services & Infrastructure (2.76%)
	592,103	Verisign, Inc.¹		27,318,889		125,129,127

		IT Consulting & Other Services (9.47%)
	50,000	EPAM Systems, Inc.¹		24,927,247		14,950,000
	1,271,323	Gartner, Inc.¹		27,028,517		414,158,893

				51,955,764		429,108,893

		Technology Distributors (1.71%)
	397,363	CDW Corp.		26,228,965		77,442,075

	Total Information Technology			431,885,162		1,386,369,243


16		See Notes to Financial Statements.


March 31, 2023		Baron Asset Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023

Shares

Cost

Value

Common Stocks (continued)

Real Estate (3.99%)

Data Center REITs (1.04%)

65,416

Equinix, Inc.

4,258,856

47,167,553

Office REITs (0.48%)

175,000

Alexandria Real Estate Equities, Inc.

26,236,333

21,978,250

Real Estate Services (0.87%)

542,323

CBRE Group, Inc., Cl A¹

6,067,334

39,486,537

Telecom Tower REITs (1.60%)

276,856

SBA Communications Corp.

6,889,422

72,278,796

Total Real Estate

43,451,945

180,911,136

Total Common Stocks

1,234,301,493

4,388,625,827

Private Common Stocks (0.83%)

Communication Services (0.56%)

Movies & Entertainment (0.56%)

197,613

StubHub Holdings, Inc., Cl A^1,3,4,6

50,000,041

25,492,077

Industrials (0.27%)

Aerospace & Defense (0.27%)

92,406

Space Exploration Technologies Corp., Cl A^1,3,4,6

7,115,262

6,848,259

69,932

Space Exploration Technologies Corp., Cl C^1,3,4,6

5,384,764

5,182,698

Total Industrials

12,500,026

12,030,957

Total Private Common Stocks

62,500,067

37,523,034

Private Preferred Stocks (1.58%)

Industrials (1.58%)

Aerospace & Defense (1.58%)

96,298

Space Exploration Technologies Corp., Series N^1,3,4,6

26,000,460

71,366,970

Principal Amount

Cost

Value

Short Term Investments (0.78%)

$35,238,344

Repurchase Agreement with Fixed Income Clearing Corp.,
dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $35,251,118;
(Fully Collateralized by $39,474,800 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $35,943,180)⁵

35,238,344

Total Investments (100.04%)

1,358,040,364

4,532,754,175

Liabilities Less Cash and Other Assets (-0.04%)

(1,624,770

)

Net Assets

4,531,129,405

Retail Shares (Equivalent to $91.42 per share
based on 22,779,897 shares outstanding)

2,082,504,314

Institutional Shares (Equivalent to $96.59 per share
based on 23,744,375 shares outstanding)

2,293,494,854

R6 Shares (Equivalent to $96.56 per share
based on 1,606,490 shares outstanding)

155,130,237

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	At March 31, 2023, the market value of restricted and fair valued securities amounted to $108,890,004 or 2.40% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities.

⁴	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited).

⁵	Level 2 security. See Note 7 regarding Fair Value Measurements.

⁶	Level 3 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		17


Baron Growth Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (98.70%)
Communication Services (6.46%)
		Alternative Carriers (6.46%)
	7,825,000	Iridium Communications, Inc.⁴	$	48,151,998	$	484,602,250


Consumer Discretionary (17.66%)
		Casinos & Gaming (3.31%)
	440,000	Boyd Gaming Corporation		11,056,072		28,212,800
	4,820,000	Penn Entertainment, Inc.¹		48,964,148		142,961,200
	1,725,000	Red Rock Resorts, Inc., Cl A		32,179,860		76,883,250

				92,200,080		248,057,250

		Education Services (1.13%)
	1,100,000	Bright Horizons Family Solutions, Inc.¹		34,585,154		84,689,000

		Hotels, Resorts & Cruise Lines (6.88%)
	2,965,000	Choice Hotels International, Inc.⁴		71,648,874		347,468,350
	1,250,000	Marriott Vacations Worldwide Corp.		66,814,799		168,575,000

				138,463,673		516,043,350

		Leisure Facilities (6.23%)
	2,000,000	Vail Resorts, Inc.		56,102,209		467,360,000

		Restaurants (0.11%)
	560,009	Krispy Kreme, Inc.		8,703,783		8,708,140

	Total Consumer Discretionary			330,054,899		1,324,857,740


Financials (39.34%)
		Asset Management & Custody Banks (2.28%)
	1,670,000	The Carlyle Group, Inc.		34,063,971		51,870,200
	1,860,000	Cohen & Steers, Inc.		40,191,523		118,965,600

				74,255,494		170,835,800

		Commercial & Residential Mortgage Finance (0.28%)
	520,000	Essent Group Ltd.		14,300,210		20,826,000

		Financial Exchanges & Data (20.44%)
	1,200,000	FactSet Research Systems, Inc.		59,954,575		498,108,000
	925,000	Morningstar, Inc.		18,840,637		187,802,750
	1,515,000	MSCI, Inc.		27,960,632		847,930,350

				106,755,844		1,533,841,100

		Investment Banking & Brokerage (0.70%)
	450,000	Houlihan Lokey, Inc.		19,625,873		39,370,500
	350,000	Moelis & Co., Cl A		5,215,059		13,454,000

				24,840,932		52,824,500

		Life & Health Insurance (3.44%)
	1,500,000	Primerica, Inc.		31,190,716		258,360,000

		Property & Casualty Insurance (12.20%)
	9,060,000	Arch Capital Group Ltd.¹		28,241,244		614,902,200
	1,000,000	Kinsale Capital Group, Inc.		35,007,763		300,150,000

				63,249,007		915,052,200

	Total Financials			314,592,203		2,951,739,600

Health Care (10.81%)
		Health Care Equipment (3.53%)
	530,000	IDEXX Laboratories, Inc.¹		7,424,926		265,042,400


Shares			Cost		Value
Common Stocks (continued)
Health Care (continued)

		Health Care Supplies (0.67%)
	4,632,307	Figs, Inc., Cl A¹	$	37,385,940	$	28,673,980
	1,157,434	Neogen Corp.¹		13,318,938		21,435,678

				50,704,878		50,109,658

		Life Sciences Tools & Services (6.55%)
	2,940,000	Bio-Techne Corporation		38,609,088		218,118,600
	70,000	Mettler-Toledo International, Inc.¹		3,201,574		107,114,700
	480,000	West Pharmaceutical Services, Inc.		16,306,090		166,305,600

				58,116,752		491,538,900

		Pharmaceuticals (0.06%)
	128,372	Dechra Pharmaceuticals PLC (United Kingdom)^2,6		3,523,090		4,202,829

	Total Health Care			119,769,646		810,893,787


Industrials (5.69%)
		Building Products (0.75%)
	1,150,000	Trex Co., Inc.¹		10,329,303		55,970,500

		Industrial Machinery & Supplies & Components (0.21%)
	1,830,612	Marel hf (Netherlands)²		7,676,818		7,464,722
	3,500,000	Velo3D, Inc.¹		7,997,500		7,945,000

				15,674,318		15,409,722

		Research & Consulting Services (4.73%)
	5,160,000	CoStar Group, Inc.¹		21,547,653		355,266,000

	Total Industrials			47,551,274		426,646,222


Information Technology (12.98%)
		Application Software (6.21%)
	725,000	Altair Engineering, Inc., Cl A¹		11,330,019		52,279,750
	1,000,000	ANSYS, Inc.¹		22,816,668		332,800,000
	260,000	Clearwater Analytics Holdings, Inc., Cl A¹		3,918,433		4,149,600
	935,000	Guidewire Software, Inc.¹		28,409,675		76,716,750

				66,474,795		465,946,100

		Electronic Components (0.21%)
	60,000	Littelfuse, Inc.		6,452,400		16,085,400

		IT Consulting & Other Services (6.56%)
	1,510,000	Gartner, Inc.¹		20,973,165		491,912,700

	Total Information Technology			93,900,360		973,944,200


Real Estate (5.76%)
		Diversified REITs (0.05%)
	200,000	American Assets Trust, Inc.		3,350,429		3,718,000

		Office REITs (1.98%)
	750,000	Alexandria Real Estate Equities, Inc.		26,054,962		94,192,500
	4,400,000	Douglas Emmett, Inc.		43,017,876		54,252,000

				69,072,838		148,444,500
		Other Specialized REITs (3.73%)
	5,385,000	Gaming and Leisure Properties, Inc.		114,093,295		280,343,100

	Total Real Estate			186,516,562		432,505,600

	Total Common Stocks			1,140,536,942		7,405,189,399


18		See Notes to Financial Statements.


March 31, 2023		Baron Growth Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023

Shares

Cost

Value

Private Convertible Preferred Stocks (0.45%)

Industrials (0.22%)

Electrical Components & Equipment (0.22%)

59,407,006

Northvolt AB (Sweden)^1,2,3,5,7

9,374,989

16,516,573

Materials (0.23%)

Fertilizers & Agricultural Chemicals (0.23%)

341,838

Farmers Business Network, Inc., Series F^1,2,3,5,7

11,300,002

11,984,840

80,440

Farmers Business Network, Inc., Series G^1,2,3,5,7

5,000,000

5,132,877

Total Materials

16,300,002

17,117,717

Total Private Convertible Preferred Stocks

25,674,991

33,634,290

Principal Amount

Short Term Investments (0.90%)

$67,502,585

Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $67,527,054; (Fully Collateralized by $75,617,800 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $68,852,640)⁶

67,502,585

Total Investments (100.05%)

1,233,714,518

7,506,326,274

Liabilities Less Cash and Other Assets (-0.05%)

(3,607,368

)

Net Assets

7,502,718,906

Retail Shares (Equivalent to $91.63 per share
based on 25,359,318 shares outstanding)

2,323,788,637

Institutional Shares (Equivalent to $96.54 per share
based on 51,399,175 shares outstanding)

4,962,173,468

R6 Shares (Equivalent to $96.55 per share
based on 2,244,982 shares outstanding)

216,756,801

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	At March 31, 2023, the market value of restricted and fair valued securities amounted to $33,634,290 or 0.45% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities.

⁴	See Note 10 regarding “Affiliated” companies.

⁵	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited).

⁶	Level 2 security. See Note 7 regarding Fair Value Measurements.

⁷	Level 3 security. See Note 7 regarding Fair Value Measurements.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		19


Baron Small Cap Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (94.11%)
Communication Services (5.13%)
		Advertising (1.07%)
	750,000	The Trade Desk, Inc., Cl A¹	$	2,662,500	$	45,682,500

		Cable & Satellite (0.93%)
	75,000	Liberty Broadband Corporation, Cl A¹		298,828		6,159,000
	200,000	Liberty Broadband Corporation, Cl C¹		772,163		16,340,000
	625,000	Liberty Media Corp.-Liberty SiriusXM, Cl C¹		1,322,731		17,493,750

				2,393,722		39,992,750

		Movies & Entertainment (3.13%)
	1,200,000	Liberty Media Corporation-Liberty Formula One, Cl C¹		21,262,385		89,796,000
	225,000	Madison Square Garden Sports Corp.¹		8,416,556		43,841,250

				29,678,941		133,637,250

	Total Communication Services			34,735,163		219,312,500


Consumer Discretionary (15.40%)
		Automotive Parts & Equipment (0.29%)
	4,500,000	Holley, Inc.¹		37,719,254		12,330,000

		Casinos & Gaming (3.54%)
	875,000	DraftKings, Inc., Cl A¹		11,187,787		16,940,000
	400,000	Penn Entertainment, Inc.¹		6,920,393		11,864,000
	2,750,000	Red Rock Resorts, Inc., Cl A		75,439,769		122,567,500

				93,547,949		151,371,500

		Education Services (1.35%)
	750,000	Bright Horizons Family Solutions, Inc.¹		29,824,721		57,742,500

		Home Improvement Retail (3.22%)
	1,400,000	Floor & Decor Holdings, Inc., Cl A¹		55,967,953		137,508,000

		Homebuilding (2.13%)
	800,000	Installed Building Products, Inc.		38,183,412		91,224,000

		Leisure Facilities (1.82%)
	1,000,000	Planet Fitness, Inc., Cl A¹		41,366,077		77,670,000

		Restaurants (1.80%)
	2,200,000	The Cheesecake Factory, Inc.		60,116,924		77,110,000

		Specialized Consumer Services (1.25%)
	2,800,000	European Wax Center, Inc., Cl A¹		53,348,102		53,200,000

	Total Consumer Discretionary			410,074,392		658,156,000


Consumer Staples (2.29%)
		Packaged Foods & Meats (1.25%)
	3,250,000	UTZ Brands, Inc.		52,114,568		53,527,500

		Personal Care Products (1.04%)
	3,500,000	The Beauty Health Co.¹		50,004,368		44,205,000

	Total Consumer Staples			102,118,936		97,732,500


Shares			Cost		Value
Common Stocks (continued)
Financials (8.42%)
		Insurance Brokers (1.85%)
	3,100,000	BRP Group, Inc., Cl A¹	$	50,723,405	$	78,926,000

		Investment Banking & Brokerage (1.28%)
	625,000	Houlihan Lokey, Inc.		28,909,333		54,681,250

		Property & Casualty Insurance (3.51%)
	500,000	Kinsale Capital Group, Inc.		72,425,817		150,075,000

		Transaction & Payment Processing Services (1.78%)
	3,900,000	Repay Holdings Corporation¹		33,541,410		25,623,000
	275,000	WEX, Inc.¹		14,404,804		50,569,750

				47,946,214		76,192,750

	Total Financials			200,004,769		359,875,000


Health Care (12.76%)
		Health Care Equipment (4.92%)
	1,000,000	Axonics, Inc.¹		35,459,918		54,560,000
	580,000	DexCom, Inc.¹		1,922,937		67,384,400
	60,000	IDEXX Laboratories, Inc.¹		829,217		30,004,800
	250,000	Inspire Medical Systems, Inc.¹		12,675,917		58,517,500

				50,887,989		210,466,700

		Health Care Supplies (1.30%)
	3,000,000	Neogen Corp.¹		44,690,676		55,560,000

		Life Sciences Tools & Services (4.66%)
	700,000	ICON plc¹		38,492,341		149,513,000
	32,500	Mettler-Toledo International, Inc.¹		1,571,421		49,731,825

				40,063,762		199,244,825

		Managed Health Care (1.10%)
	800,000	HealthEquity, Inc.¹		13,208,487		46,968,000

		Pharmaceuticals (0.78%)
	1,020,000	Dechra Pharmaceuticals PLC (United Kingdom)^2,4		28,920,685		33,394,238

	Total Health Care			177,771,599		545,633,763


Industrials (27.44%)
		Aerospace & Defense (4.28%)
	2,200,000	Kratos Defense & Security Solutions, Inc.¹		32,701,507		29,656,000
	1,200,000	Mercury Systems, Inc.¹		37,862,063		61,344,000
	125,000	TransDigm Group, Inc.¹		0		92,131,250

				70,563,570		183,131,250

		Building Products (2.12%)
	5,500,000	Janus International Group, Inc.¹		54,266,533		54,230,000
	750,000	Trex Co., Inc.¹		28,530,038		36,502,500

				82,796,571		90,732,500

		Diversified Support Services (1.61%)
	2,275,000	Driven Brands Holdings, Inc.¹		57,328,359		68,955,250

		Electrical Components & Equipment (3.52%)
	1,800,000	Shoals Technologies Group, Inc., Cl A¹		29,324,283		41,022,000
	7,650,000	Vertiv Holdings Co.		78,901,960		109,471,500

				108,226,243		150,493,500


20		See Notes to Financial Statements.


March 31, 2023		Baron Small Cap Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (continued)

Industrials (continued)

		Environmental & Facilities Services (1.46%)
	450,000	Waste Connections, Inc.	$	19,650,000	$	62,581,500

		Human Resource & Employment Services (4.65%)
	1,750,000	ASGN, Inc.¹		55,248,585		144,672,500
	3,875,000	First Advantage Corp.¹		63,180,840		54,095,000

				118,429,425		198,767,500

		Industrial Machinery & Supplies & Components (5.10%)
	750,000	Chart Industries, Inc.¹		101,593,035		94,050,000
	525,000	John Bean Technologies Corp.		45,760,616		57,377,250
	285,000	RBC Bearings, Incorporated¹		34,467,037		66,328,050

				181,820,688		217,755,300

		Research & Consulting Services (1.10%)
	5,000,000	Clarivate PLC¹		55,404,082		46,950,000

		Trading Companies & Distributors (3.60%)
	2,000,000	Hillman Solutions Corp.^1,3		21,912,701		16,840,000
	1,000,000	SiteOne Landscape Supply, Inc.¹		50,124,054		136,870,000

				72,036,755		153,710,000

	Total Industrials			766,255,693		1,173,076,800


Information Technology (18.94%)
		Application Software (9.74%)
	750,000	Altair Engineering, Inc., Cl A¹		11,935,619		54,082,500
	350,000	Aspen Technology, Inc.¹		32,534,028		80,104,500
	950,000	Ceridian HCM Holding, Inc.¹		29,430,555		69,559,000
	1,650,000	Clearwater Analytics Holdings, Inc., Cl A¹		29,031,738		26,334,000
	7,388,636	E2open Parent Holdings, Inc., Cl A¹		65,043,584		43,001,861
	1,225,000	Guidewire Software, Inc.¹		31,269,358		100,511,250
	700,000	Sprout Social, Inc., Cl A¹		40,024,947		42,616,000

				239,269,829		416,209,111

		Electronic Equipment & Instruments (1.74%)
	1,500,000	Cognex Corp.		25,832,809		74,325,000

		IT Consulting & Other Services (7.46%)
	770,000	Endava plc, ADR^1,2		25,677,665		51,728,600
	715,000	Gartner, Inc.¹		9,776,121		232,925,550
	3,000,000	Grid Dynamics Holdings, Inc.¹		36,322,597		34,380,000

				71,776,383		319,034,150

	Total Information Technology			336,879,021		809,568,261


Materials (1.64%)
		Specialty Chemicals (1.64%)
	1,700,000	Avient Corp.		53,733,696		69,972,000

Shares

Cost

Value

Common Stocks (continued)

Real Estate (2.09%)

Industrial REITs (0.56%)

850,000

Americold Realty Trust, Inc.

13,294,118

24,182,500

Telecom Tower REITs (1.53%)

250,000

SBA Communications Corp.

1,006,880

65,267,500

Total Real Estate

14,300,998

89,450,000

Total Common Stocks

2,095,874,267

4,022,776,824

Principal Amount

Short Term Investments (5.93%)

$253,636,574

Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $253,728,517; (Fully Collateralized by $284,129,000 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $258,709,348)⁴

253,636,574

Total Investments (100.04%)

2,349,510,841

4,276,413,398

Liabilities Less Cash and Other Assets (-0.04%)

(1,825,399

)

Net Assets

4,274,587,999

Retail Shares (Equivalent to $26.94 per share
based on 45,067,961 shares outstanding)

1,214,171,742

Institutional Shares (Equivalent to $28.98 per share
based on 98,522,140 shares outstanding)

2,855,607,227

R6 Shares (Equivalent to $28.97 per share
based on 7,069,096 shares outstanding)

204,809,030

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited).

⁴	Level 2 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		21


Baron Opportunity Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (93.46%)
Communication Services (11.12%)
		Advertising (1.52%)
	217,510	The Trade Desk, Inc., Cl A¹	$	4,644,173	$	13,248,534

		Interactive Home Entertainment (2.35%)
	90,500	Electronic Arts, Inc.		9,676,455		10,900,725
	80,700	Take-Two Interactive Software, Inc.¹		8,525,083		9,627,510

				18,201,538		20,528,235

		Interactive Media & Services (5.83%)
	243,000	Alphabet, Inc., Cl C¹		9,303,337		25,272,000
	84,000	Meta Platforms, Inc., Cl A¹		12,955,609		17,802,960
	311,369	ZoomInfo Technologies, Inc.¹		7,213,020		7,693,928

				29,471,966		50,768,888

		Movies & Entertainment (1.42%)
	516,000	Endeavor Group Holdings, Inc., Cl A¹		12,384,000		12,347,880

	Total Communication Services			64,701,677		96,893,537


Consumer Discretionary (13.22%)
		Automobile Manufacturers (7.06%)
	484,183	Rivian Automotive, Inc., Cl A¹		7,499,995		7,495,153
	260,400	Tesla, Inc.¹		19,644,628		54,022,584

				27,144,623		61,517,737

		Automotive Parts & Equipment (0.40%)
	81,200	Mobileye Global, Inc., Cl A¹		3,158,840		3,513,524

		Broadline Retail (5.76%)
	485,500	Amazon.com, Inc.¹		29,742,116		50,147,295

	Total Consumer Discretionary			60,045,579		115,178,556


Financials (6.32%)
		Transaction & Payment Processing Services (6.32%)
	69,800	MasterCard, Incorporated, Cl A		15,595,187		25,366,018
	131,500	Visa, Inc., Cl A		21,184,507		29,647,990

	Total Financials			36,779,694		55,014,008


Health Care (8.82%)
		Biotechnology (3.60%)
	48,739	argenx SE, ADR^1,2		1,347,608		18,159,177
	124,561	Arrowhead Pharmaceuticals, Inc.¹		2,494,474		3,163,849
	584,000	Rocket Pharmaceuticals, Inc.¹		11,268,776		10,003,920

				15,110,858		31,326,946

		Health Care Equipment (3.40%)
	59,800	DexCom, Inc.¹		6,640,713		6,947,564
	54,505	Intuitive Surgical, Inc.¹		7,920,379		13,924,393
	40,400	Shockwave Medical, Inc.¹		1,988,318		8,759,932

				16,549,410		29,631,889

		Life Sciences Tools & Services (1.82%)
	68,315	Illumina, Inc.¹		11,957,854		15,886,653

	Total Health Care			43,618,122		76,845,488


Industrials (2.76%)
		Research & Consulting Services (2.76%)
	349,330	CoStar Group, Inc.¹		14,346,813		24,051,370


Shares			Cost		Value
Common Stocks (continued)
Information Technology (50.04%)
		Application Software (9.97%)
	199,570	Ceridian HCM Holding, Inc.¹	$	9,380,035	$	14,612,516
	253,500	Gitlab, Inc., Cl A^1,4		9,369,173		8,692,515
	175,100	Guidewire Software, Inc.¹		5,058,280		14,366,955
	20,900	HubSpot, Inc.¹		7,041,030		8,960,875
	52,000	ServiceNow, Inc.^1,4		15,689,186		24,165,440
	77,500	Workday, Inc., Cl A¹		12,581,374		16,006,850

				59,119,078		86,805,151

		Internet Services & Infrastructure (1.15%)
	209,500	Shopify, Inc., Cl A^1,2		6,851,111		10,043,430

		IT Consulting & Other Services (4.66%)
	206,368	Endava plc, ADR^1,2		7,524,784		13,863,802
	82,087	Gartner, Inc.¹		1,069,230		26,741,482

				8,594,014		40,605,284

		Semiconductor Materials & Equipment (1.66%)
	21,300	ASML Holding N.V.²		10,043,235		14,499,123

		Semiconductors (13.14%)
	183,000	Advanced Micro Devices, Inc.¹		13,745,675		17,935,830
	1,793,500	indie Semiconductor, Inc., Cl A¹		12,356,509		18,921,425
	174,000	Marvell Technology, Inc.		6,802,196		7,534,200
	26,200	Monolithic Power Systems, Inc.		10,450,027		13,114,148
	204,900	NVIDIA Corp.		18,068,512		56,915,073

				61,422,919		114,420,676

		Systems Software (19.46%)
	202,000	Cloudflare, Inc., Cl A^1,4		8,494,557		12,455,320
	77,623	Crowdstrike Holdings, Inc., Cl A¹		5,534,067		10,654,533
	113,000	Datadog, Inc., Cl A^1,4		8,370,719		8,210,580
	433,900	Microsoft Corporation		64,291,841		125,093,370
	85,008	Snowflake, Inc., Cl A^1,4		11,548,604		13,115,884

				98,239,788		169,529,687

	Total Information Technology			244,270,145		435,903,351


Real Estate (1.18%)
		Data Center REITs (1.18%)
	14,225	Equinix, Inc.		2,122,124		10,256,794

	Total Common Stocks			465,884,154		814,143,104


Private Common Stocks (1.69%)
Communication Services (0.51%)
		Interactive Media & Services (0.51%)
	50,000	X Holdings I, Inc., Cl A^1,3,4,6		5,000,000		4,476,000


Industrials (1.18%)
		Aerospace & Defense (1.17%)
	105,020	Space Exploration Technologies Corp., Cl A^1,3,4,6		4,607,169		7,783,089
	31,890	Space Exploration Technologies Corp., Cl C^1,3,4,6		1,392,972		2,363,385

				6,000,141		10,146,474

		Passenger Ground Transportation (0.01%)
	3,571	GM Cruise Holdings LLC, Cl B^1,3,4,6		103,563		94,135

	Total Industrials			6,103,704		10,240,609

	Total Private Common Stocks			11,103,704		14,716,609


22		See Notes to Financial Statements.


March 31, 2023		Baron Opportunity Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023

Shares

Cost

Value

Private Convertible Preferred Stocks (0.88%)

Materials (0.88%)

Fertilizers & Agricultural Chemicals (0.88%)

219,321

Farmers Business Network, Inc., Series F^1,3,4,6

7,250,007

7,689,394

Private Preferred Stocks (2.41%)

Industrials (2.41%)

Aerospace & Defense (1.57%)

18,519

Space Exploration Technologies Corp., Series N^1,3,4,6

5,000,130

13,724,532

Passenger Ground Transportation (0.84%)

266,956

GM Cruise Holdings, Cl G^1,3,4,6

7,034,290

7,285,229

Total Private Preferred Stocks

12,034,420

21,009,761

Principal Amount

Short Term Investments (1.59%)

$13,810,660

Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 3/31/2023, 4.35%
due 4/3/2023; Proceeds at
maturity $13,815,667;
(Fully Collateralized by
$15,471,000 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $14,086,884)⁵

13,810,660

Total Investments (100.03%)

510,082,945

871,369,528

Liabilities Less Cash and Other Assets (-0.03%)

(253,943

)

Net Assets

871,115,585

Retail Shares (Equivalent to $27.80 per share
based on 16,525,039 shares outstanding)

459,444,274

Institutional Shares (Equivalent to $29.55 per share
based on 13,054,053 shares outstanding)

385,741,809

R6 Shares (Equivalent to $29.58 per share
based on 876,529 shares outstanding)

25,929,502

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	At March 31, 2023, the market value of restricted and fair valued securities amounted to $43,415,764 or 4.98% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities.

⁴	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited).

⁵	Level 2 security. See Note 7 regarding Fair Value Measurements.

⁶	Level 3 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		23


Baron Fifth Avenue Growth Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (96.81%)
Communication Services (9.92%)
		Advertising (2.93%)
	194,162	The Trade Desk, Inc., Cl A¹	$	10,112,120	$	11,826,407

		Interactive Media & Services (6.99%)
	92,398	Meta Platforms Inc., Cl A¹		6,934,348		19,582,832
	348,023	ZoomInfo Technologies, Inc.¹		12,177,461		8,599,649

				19,111,809		28,182,481

	Total Communication Services			29,223,929		40,008,888


Consumer Discretionary (19.33%)
		Automobile Manufacturers (6.36%)
	390,342	Rivian Automotive, Inc., Cl A¹		10,968,291		6,042,494
	94,524	Tesla, Inc.¹		24,849,000		19,609,949

				35,817,291		25,652,443

		Automotive Parts & Equipment (1.72%)
	160,268	Mobileye Global, Inc., Cl A^1,2		3,614,202		6,934,797

		Broadline Retail (11.25%)
	287,686	Amazon.com, Inc.¹		2,726,880		29,715,087
	11,905	MercadoLibre, Inc.^1,2		6,864,818		15,691,504

				9,591,698		45,406,591

	Total Consumer Discretionary			49,023,191		77,993,831


Financials (10.12%)
		Transaction & Payment Processing Services (10.12%)
	6,222	Adyen N.V., 144A (Netherlands)^1,2,5		4,719,451		9,914,308
	132,183	Block, Inc.¹		7,792,844		9,074,363
	60,072	MasterCard Incorporated, Cl A		2,968,834		21,830,766

	Total Financials			15,481,129		40,819,437


Health Care (13.22%)
		Biotechnology (2.27%)
	24,633	argenx SE, ADR^1,2		7,212,636		9,177,763

		Health Care Equipment (4.69%)
	74,020	Intuitive Surgical, Inc.¹		8,617,282		18,909,889

		Health Care Technology (3.53%)
	77,581	Veeva Systems, Inc., Cl A¹		5,455,270		14,258,612

		Life Sciences Tools & Services (2.73%)
	47,327	Illumina, Inc.¹		5,397,461		11,005,894

	Total Health Care			26,682,649		53,352,158


Shares			Cost		Value
Common Stocks (continued)
Information Technology (44.22%)
		Application Software (8.81%)
	35,862	Atlassian Corp. Ltd., Cl A¹	$	9,312,661	$	6,138,498
	54,748	ServiceNow, Inc.^1,4		20,976,884		25,442,491
	115,217	Gitlab, Inc., Cl A^1,4		7,496,851		3,950,791

				37,786,396		35,531,780
		Internet Services & Infrastructure (4.15%)
	349,300	Shopify, Inc., Cl A^1,2		11,987,348		16,745,442

		IT Consulting & Other Services (4.86%)
	138,513	Endava PLC, ADR^1,2		15,076,498		9,305,303
	34,514	EPAM Systems, Inc.¹		2,565,574		10,319,686

				17,642,072		19,624,989
		Semiconductor Materials & Equipment (3.30%)
	19,541	ASML Holding N.V.²		1,203,894		13,301,754

		Semiconductors (7.74%)
	112,398	NVIDIA Corp.		16,814,089		31,220,793

		Systems Software (15.36%)
	200,489	Cloudflare, Inc., Cl A^1,4		15,502,481		12,362,151
	114,467	Crowdstrike Holdings, Inc., Cl A¹		9,838,034		15,711,740
	189,945	Datadog, Inc., Cl A^1,4		14,428,723		13,801,404
	130,242	Snowflake, Inc., Cl A¹		23,344,928		20,095,038

				63,114,166		61,970,333

	Total Information Technology			148,547,965		178,395,091

	Total Common Stocks			268,958,863		390,569,405


Private Common Stocks (0.99%)
Industrials (0.99%)
		Aerospace & Defense (0.99%)
	41,330	Space Exploration Technologies Corp., Cl A^1,3,4,6		1,932,253		3,062,989
	12,240	Space Exploration Technologies Corp., Cl C^1,3,4,6		567,691		907,113

	Total Private Common Stocks			2,499,944		3,970,102


Private Preferred Stocks (0.90%)
Industrials (0.90%)
		Passenger Ground Transportation (0.90%)
	133,288	GM Cruise Holdings, Cl G^1,3,6		3,512,139		3,637,429


24		See Notes to Financial Statements.


March 31, 2023		Baron Fifth Avenue Growth Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023

Principal Amount

Cost

Value

Short Term Investments (1.61%)

$6,506,945

Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $6,509,303; (Fully Collateralized by $7,289,300 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $6,637,161)⁵

6,506,945

Total Investments (100.31%)

281,477,891

404,683,881

Liabilities Less Cash and Other Assets (-0.31%)

(1,240,084

)

Net Assets

403,443,797

Retail Shares (Equivalent to $31.91 per share
based on 2,723,437 shares outstanding)

86,903,984

Institutional Shares (Equivalent to $32.92 per share
based on 8,905,545 shares outstanding)

293,204,170

R6 Shares (Equivalent to $32.92 per share
based on 708,934 shares outstanding)

23,335,643

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	At March 31, 2023, the market value of restricted and fair valued securities amounted to $7,607,531 or 1.89% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities.

⁴	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited).

⁵	Level 2 security. See Note 7 regarding Fair Value Measurements.

⁶	Level 3 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

^144A

Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At March 31, 2023, the market value of Rule 144A securities amounted to $9,914,308 or 2.46% of net assets.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		25


Baron Discovery Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (93.11%)
Communication Services (1.62%)
		Advertising (0.66%)
	4,250,000	S4 Capital PLC (United Kingdom)^1,2,4	$	15,642,612	$	8,524,468

		Movies & Entertainment (0.96%)
	185,000	Liberty Media Corporation-Liberty Formula One, Cl A¹		5,634,811		12,487,500

	Total Communication Services			21,277,423		21,011,968


Consumer Discretionary (13.41%)
		Casinos & Gaming (6.47%)
	735,000	Boyd Gaming Corporation		46,928,841		47,128,200
	1,035,000	DraftKings, Inc., Cl A¹		18,755,879		20,037,600
	375,000	Red Rock Resorts, Inc., Cl A		13,003,045		16,713,750

				78,687,765		83,879,550

		Footwear (0.72%)
	300,000	On Holding AG, Cl A^1,2		6,466,000		9,309,000

		Home Improvement Retail (2.99%)
	395,000	Floor & Decor Holdings, Inc., Cl A¹		14,885,596		38,796,900

		Homefurnishing Retail (0.74%)
	39,500	RH¹		9,880,813		9,620,225

		Restaurants (2.49%)
	350,000	The Cheesecake Factory, Inc.		10,177,178		12,267,500
	185,000	Texas Roadhouse, Inc.		15,924,197		19,991,100

				26,101,375		32,258,600

	Total Consumer Discretionary			136,021,549		173,864,275


Consumer Staples (1.17%)
		Personal Care Products (1.17%)
	1,200,000	The Beauty Health Co.¹		12,467,467		15,156,000


Financials (5.61%)
		Insurance Brokers (0.98%)
	500,007	BRP Group, Inc., Cl A¹		8,065,826		12,730,178

		Property & Casualty Insurance (4.63%)
	200,000	Kinsale Capital Group, Inc.		11,768,138		60,030,000

	Total Financials			19,833,964		72,760,178


Health Care (15.21%)
		Health Care Equipment (7.57%)
	637,982	Axonics, Inc.¹		28,878,670		34,808,298
	359,823	Inari Medical, Inc.¹		17,919,524		22,215,472
	640,208	Silk Road Medical, Inc.^1,3		27,145,351		25,051,339
	4,660,000	ViewRay, Inc.¹		23,738,157		16,123,600

				97,681,702		98,198,709

		Health Care Supplies (1.51%)
	2,029,967	Cerus Corp.¹		10,468,349		6,029,002
	199,000	Establishment Labs Holdings, Inc.^1,2		14,245,456		13,480,260

				24,713,805		19,509,262

		Health Care Technology (2.45%)
	550,591	Certara, Inc.¹		11,505,296		13,274,749
	1,789,366	Definitive Healthcare Corp.¹		39,602,669		18,484,151

				51,107,965		31,758,900


Shares			Cost		Value
Common Stocks (continued)

Health Care (continued)

		Life Sciences Tools & Services (1.54%)
	514,595	Maravai LifeSciences Holdings, Inc., Cl A¹	$	7,455,504	$	7,209,476
	573,790	Veracyte, Inc.^1,3		14,716,344		12,795,517

				22,171,848		20,004,993

		Pharmaceuticals (2.14%)
	859,432	Revance Therapeutics, Inc.¹		16,520,729		27,682,304

	Total Health Care			212,196,049		197,154,168

Industrials (18.43%)
		Aerospace & Defense (6.97%)
	166,095	Axon Enterprise, Inc.¹		18,709,889		37,346,461
	2,302,370	Kratos Defense & Security Solutions, Inc.¹		35,640,286		31,035,947
	430,380	Mercury Systems, Inc.¹		19,621,174		22,001,026

				73,971,349		90,383,434

		Building Products (0.75%)
	200,000	Trex Co., Inc.¹		6,713,309		9,734,000

		Diversified Support Services (1.19%)
	1,200,000	ACV Auctions, Inc., Cl A¹		31,541,757		15,492,000

		Environmental & Facilities Services (2.12%)
	769,606	Montrose Environmental Group, Inc.¹		16,499,889		27,451,846

		Human Resource & Employment Services (1.73%)
	272,131	ASGN, Inc.¹		27,515,869		22,497,070

		Industrial Machinery & Supplies & Components (3.24%)
	200,000	Chart Industries, Inc.¹		27,220,567		25,080,000
	1,705,185	Markforged Holding Corp.¹		14,565,523		1,634,931
	50,000	RBC Bearings, Inc.¹		10,475,838		11,636,500
	1,591,680	Velo3D, Inc.¹		13,139,523		3,613,114

				65,401,451		41,964,545

		Trading Companies & Distributors (2.43%)
	230,000	SiteOne Landscape Supply, Inc.¹		16,419,324		31,480,100

	Total Industrials			238,062,948		239,002,995

Information Technology (34.67%)
		Application Software (9.95%)
	800,000	Alkami Technology, Inc.¹		19,067,545		10,128,000
	375,000	Ceridian HCM Holding, Inc.¹		20,590,143		27,457,500
	1,500,000	Clearwater Analytics Holdings, Inc., Cl A¹		27,680,932		23,940,000
	667,889	Gitlab, Inc., Cl A¹		30,802,571		22,901,914
	250,357	Guidewire Software, Inc.¹		19,464,650		20,541,792
	2,000,000	SmartRent, Inc.^1,3		5,193,040		5,100,000
	395,000	Smartsheet, Inc., Cl A¹		13,837,158		18,881,000

				136,636,039		128,950,206

		Electronic Equipment & Instruments (5.84%)
	425,321	Advanced Energy Industries, Inc.		30,735,779		41,681,458
	54,131	Novanta, Inc.¹		5,885,852		8,611,701
	750,000	PAR Technology Corp.¹		22,434,021		25,470,000

				59,055,652		75,763,159

		IT Consulting & Other Services (1.55%)
	300,000	Endava PLC, ADR^1,2		7,125,604		20,154,000


26		See Notes to Financial Statements.


March 31, 2023		Baron Discovery Fund

STATEMENT OF NET ASSETS (Unaudited) (Continued)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (continued)

Information Technology (continued)

		Semiconductor Materials & Equipment (2.65%)
	490,800	Ichor Holdings Ltd.¹	$	11,435,027	$	16,068,792
	175,000	Nova Ltd.¹		4,080,928		18,282,250

				15,515,955		34,351,042

		Semiconductors (7.22%)
	405,000	Allegro MicroSystems, Inc.¹		5,670,000		19,435,950
	2,910,000	indie Semiconductor, Inc., Cl A¹		27,712,225		30,700,500
	2,750,000	Navitas Semiconductor Corp.¹		24,385,564		20,102,500
	164,000	SiTime Corp.¹		19,523,628		23,325,720

				77,291,417		93,564,670

		Systems Software (7.46%)
	1,894,900	Couchbase, Inc.^1,3		44,495,903		26,642,294
	165,200	CyberArk Software Ltd.^1,2		21,254,706		24,446,296
	430,775	Dynatrace, Inc.^1,3		10,425,483		18,221,782
	112,100	Qualys, Inc.¹		6,566,711		14,575,242
	491,000	Varonis Systems, Inc.¹		13,122,176		12,770,910

				95,864,979		96,656,524

	Total Information Technology			391,489,646		449,439,601


Real Estate (2.99%)
		Industrial REITs (2.99%)
	650,000	Rexford Industrial Realty, Inc.		31,657,136		38,772,500

	Total Common Stocks			1,063,006,182		1,207,161,685



Principal Amount
Short Term Investments (6.68%)
	$86,654,673	Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $86,686,085; (Fully Collateralized by $97,072,400 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $88,387,800)⁴		86,654,673		86,654,673

	Total Investments (99.79%)		$	1,149,660,855		1,293,816,358

	Cash and Other Assets Less Liabilities (0.21%)					2,677,690

	Net Assets				$	1,296,494,048

	Retail Shares (Equivalent to $24.80 per share based on 6,174,226 shares outstanding)				$	153,106,324

	Institutional Shares (Equivalent to $25.41 per share based on 43,125,758 shares outstanding)				$	1,096,025,599

	R6 Shares (Equivalent to $25.42 per share based on 1,863,406 shares outstanding)				$	47,362,125

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

⁴	Level 2 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

All securities are Level 1, unless otherwise noted.


See Notes to Financial Statements.		27


Baron Durable Advantage Fund		March 31, 2023

STATEMENT OF NET ASSETS (Unaudited)

MARCH 31, 2023


Shares			Cost		Value
Common Stocks (99.17%)
Communication Services (11.03%)
		Interactive Media & Services (11.03%)
	19,160	Alphabet, Inc., Cl C¹	$	1,610,665	$	1,992,640
	22,486	Meta Platforms, Inc., Cl A¹		3,201,520		4,765,683

	Total Communication Services			4,812,185		6,758,323


Consumer Discretionary (5.30%)
		Broadline Retail (5.30%)
	31,417	Amazon.com, Inc.¹		3,564,717		3,245,062


Consumer Staples (3.66%)
		Consumer Staples Merchandise Retail (2.74%)
	3,376	Costco Wholesale Corp.		1,384,589		1,677,433

		Personal Care Products (0.92%)
	2,280	The Estée Lauder Companies, Inc., Cl A		570,117		561,929

	Total Consumer Staples			1,954,706		2,239,362


Financials (29.88%)
		Asset Management & Custody Banks (4.78%)
	8,022	Blackstone, Inc.		806,051		704,652
	68,201	Brookfield Corp.²		2,523,822		2,222,671

				3,329,873		2,927,323

		Financial Exchanges & Data (11.30%)
	8,348	CME Group, Inc.		1,571,552		1,598,809
	4,747	Moody’s Corp.		1,220,145		1,452,677
	3,359	MSCI, Inc.		1,539,846		1,879,999
	5,776	S&P Global, Inc.		1,634,262		1,991,391

				5,965,805		6,922,876

		Investment Banking & Brokerage (1.17%)
	3,538	LPL Financial Holdings, Inc.		721,510		716,091

		Property & Casualty Insurance (4.47%)
	40,299	Arch Capital Group Ltd.¹		1,657,143		2,735,093

		Transaction & Payment Processing Services (8.16%)
	6,208	MasterCard, Incorporated, Cl A		1,977,751		2,256,049
	12,169	Visa, Inc., Cl A		2,639,058		2,743,623

				4,616,809		4,999,672

	Total Financials			16,291,140		18,301,055


Health Care (13.51%)
		Life Sciences Tools & Services (9.13%)
	4,745	Agilent Technologies, Inc.		568,932		656,423
	8,096	Danaher Corp.		1,765,474		2,040,516
	493	Mettler-Toledo International, Inc.¹		545,646		754,393
	3,721	Thermo Fisher Scientific, Inc.		1,764,329		2,144,673

				4,644,381		5,596,005

		Managed Health Care (4.38%)
	5,674	UnitedHealth Group, Incorporated		2,282,134		2,681,476

	Total Health Care			6,926,515		8,277,481


Shares			Cost		Value
Common Stocks (continued)
Industrials (2.97%)
		Aerospace & Defense (2.97%)
	13,404	HEICO Corp., Cl A	$	1,540,134	$	1,821,604

Information Technology (32.82%)
		Application Software (5.86%)
	3,168	Adobe, Inc.¹		1,027,222		1,220,852
	5,307	Intuit, Inc.		2,260,412		2,366,020

				3,287,634		3,586,872

		Electronic Manufacturing Services (1.43%)
	6,675	TE Connectivity Ltd.		831,184		875,426

		IT Consulting & Other Services (4.26%)
	9,132	Accenture plc, Cl A		2,520,167		2,610,017

		Semiconductors (12.13%)
	4,662	Monolithic Power Systems, Inc.		1,786,178		2,333,518
	8,633	NVIDIA Corp.		1,317,360		2,397,988
	12,178	Taiwan Semiconductor Manufacturing Co., Ltd., ADR²		1,119,851		1,132,798
	8,432	Texas Instruments, Inc.		1,446,702		1,568,436

				5,670,091		7,432,740

		Systems Software (9.14%)
	19,420	Microsoft Corporation		4,415,943		5,598,786

	Total Information Technology			16,725,019		20,103,841

	Total Common Stocks			51,814,416		60,746,728



Principal Amount
Short Term Investments (0.64%)
	$390,576	Repurchase Agreement with Fixed Income Clearing Corp., dated 3/31/2023, 4.35% due 4/3/2023; Proceeds at maturity $390,718; (Fully Collateralized by $437,600 U.S. Treasury Note, 0.25% due 10/31/2025 Market value - $398,450)³		390,576		390,576

	Total Investments (99.81%)		$	52,204,992		61,137,304

	Cash and Other Assets Less Liabilities (0.19%)					115,269

	Net Assets				$	61,252,573

	Retail Shares (Equivalent to $17.79 per share based on 514,880 shares outstanding)				$	9,158,202

	Institutional Shares (Equivalent to $18.01 per share based on 2,657,581 shares outstanding)				$	47,857,521

	R6 Shares (Equivalent to $18.01 per share based on 235,257 shares outstanding)				$	4,236,850

%	Represents percentage of net assets.

¹	Non-income producing securities.

²	Foreign corporation.

³	Level 2 security. See Note 7 regarding Fair Value Measurements.

^ADR	American Depositary Receipt.

All securities are Level 1, unless otherwise noted.


28		See Notes to Financial Statements.


March 31, 2023		Baron Funds

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)

MARCH 31, 2023


	Baron Asset Fund		Baron Growth Fund		Baron Small Cap Fund		Baron Opportunity Fund
Assets:
Investments in securities, at value*
Unaffiliated investments	$	4,532,754,175	$	6,674,255,674	$	4,276,413,398	$	871,369,528
“Affiliated” investments		—		832,070,600		—		—

Total investments, at value		4,532,754,175		7,506,326,274		4,276,413,398		871,369,528
Dividends and interest receivable		1,938,472		8,254,394		795,682		27,869
Receivable for shares sold		1,452,228		4,585,179		2,348,626		447,634
Receivable for securities sold		646,158		—		1,775,368		—
Prepaid expenses		64,237		104,654		61,409		11,474

		4,536,855,270		7,519,270,501		4,281,394,483		871,856,505

Liabilities:
Payable for shares redeemed		3,047,600		4,896,366		1,835,713		589,071
Payable for securities purchased		2,180,949		11,054,001		4,446,465		—
Trustee fees payable (Note 4)		55,099		83,599		54,116		11,242
Distribution fees payable (Note 4)		850		114		541		174
Investment advisory fees payable (Note 4)		202		442		618		261
Due to custodian bank		—		87		—		—
Accrued expenses and other payables		441,165		516,986		469,031		140,172

		5,725,865		16,551,595		6,806,484		740,920

Net Assets	$	4,531,129,405	$	7,502,718,906	$	4,274,587,999	$	871,115,585

Net Assets consist of:
Paid-in capital	$	1,362,141,257	$	1,122,196,047	$	2,302,496,127	$	636,477,305
Distributable earnings/(losses)		3,168,988,148		6,380,522,859		1,972,091,872		234,638,280

Net Assets	$	4,531,129,405	$	7,502,718,906	$	4,274,587,999	$	871,115,585

Retail Shares:
Net Assets	$	2,082,504,314	$	2,323,788,637	$	1,214,171,742	$	459,444,274
Shares Outstanding ($0.01 par value; indefinite shares authorized)		22,779,897		25,359,318		45,067,961		16,525,039

Net Asset Value and Offering Price Per Share	$	91.42	$	91.63	$	26.94	$	27.80

Institutional Shares:
Net Assets	$	2,293,494,854	$	4,962,173,468	$	2,855,607,227	$	385,741,809
Shares Outstanding ($0.01 par value; indefinite shares authorized)		23,744,375		51,399,175		98,522,140		13,054,053

Net Asset Value and Offering Price Per Share	$	96.59	$	96.54	$	28.98	$	29.55

R6 Shares:
Net Assets	$	155,130,237	$	216,756,801	$	204,809,030	$	25,929,502
Shares Outstanding ($0.01 par value; indefinite shares authorized)		1,606,490		2,244,982		7,069,096		876,529

Net Asset Value and Offering Price Per Share	$	96.56	$	96.55	$	28.97	$	29.58


*Investments in securities, at cost:
Unaffiliated investments	$	1,358,040,364	$	1,113,913,646	$	2,349,510,841	$	510,082,945
“Affiliated” investments		—		119,800,872		—		—

Total investments, at cost	$	1,358,040,364	$	1,233,714,518	$	2,349,510,841	$	510,082,945


See Notes to Financial Statements.		29


Baron Funds		March 31, 2023

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)

MARCH 31, 2023


	Baron Fifth Avenue Growth Fund		Baron Discovery Fund			Baron Durable Advantage Fund
Assets:
Investments in securities, at value* Unaffiliated investments	$	404,683,881	$	1,293,816,358		$	61,137,304
“Affiliated” investments		—		—			—

Total investments, at value		404,683,881		1,293,816,358			61,137,304
Dividends and interest receivable		786		393,210			12,515
Receivable for shares sold		71,899		6,787,567			188,625
Receivable for securities sold		—		—			—
Prepaid expenses		5,288		18,293			785

		404,761,854		1,301,015,428			61,339,229

Liabilities:
Payable for shares redeemed		83,696		803,577			4,010
Payable for securities purchased		1,152,222		3,519,824			—
Trustee fees payable (Note 4)		5,198		12,236			464
Distribution fees payable (Note 4)		670		697			168
Investment advisory fees payable (Note 4)		261		111			645
Due to Custodian Bank		—		—			—
Accrued expenses and other payables		76,010		184,935			81,369

		1,318,057		4,521,380			86,656

Net Assets	$	403,443,797	$	1,296,494,048		$	61,252,573

Net Assets consist of:
Paid-in capital	$	307,644,346	$	1,335,757,296		$	54,583,250
Distributable earnings/(losses)		95,799,451		(39,263,248	)		6,669,323

Net Assets	$	403,443,797	$	1,296,494,048		$	61,252,573

Retail Shares:
Net Assets	$	86,903,984	$	153,106,324		$	9,158,202
Shares Outstanding ($0.01 par value; indefinite shares authorized)		2,723,437		6,174,226			514,880

Net Asset Value and Offering Price Per Share	$	31.91	$	24.80		$	17.79

Institutional Shares:
Net Assets	$	293,204,170	$	1,096,025,599		$	47,857,521
Shares Outstanding ($0.01 par value; indefinite shares authorized)		8,905,545		43,125,758			2,657,581

Net Asset Value and Offering Price Per Share	$	32.92	$	25.41		$	18.01

R6 Shares:
Net Assets	$	23,335,643	$	47,362,125		$	4,236,850
Shares Outstanding ($0.01 par value; indefinite shares authorized)		708,934		1,863,406			235,257

Net Asset Value and Offering Price Per Share	$	32.92	$	25.42		$	18.01


*Investments in securities, at cost:
Unaffiliated investments	$	281,477,891	$	1,149,660,855		$	52,204,992
“Affiliated” investments		—		—			—

Total investments, at cost	$	281,477,891	$	1,149,660,855		$	52,204,992


30		See Notes to Financial Statements.


March 31, 2023		Baron Funds

STATEMENTS OF OPERATIONS (Unaudited)

FOR THE SIX MONTHS ENDED MARCH 31, 2023


	Baron Asset Fund			Baron Growth Fund			Baron Small Cap Fund			Baron Opportunity Fund
Investment income:
Income:
Dividends — Unaffiliated investments	$	12,072,471		$	43,263,534		$	12,143,676		$	1,079,349
Dividends — “Affiliated” investments		—			2,573,875			—			—
Interest		754,262			542,335			4,068,451			221,181
Foreign taxes withheld on dividends		—			(9,228	)		(34,417	)		(8,984	)

Total income		12,826,733			46,370,516			16,177,710			1,291,546

Expenses:
Investment advisory fees (Note 4)		21,897,377			35,556,933			20,906,388			4,115,398
Distribution fees — Retail Shares (Note 4)		2,529,739			2,824,974			1,502,452			543,860
Shareholder servicing agent fees and expenses — Retail Shares		116,900			91,850			68,470			36,740
Shareholder servicing agent fees and expenses — Institutional Shares		38,410			66,800			45,820			11,840
Shareholder servicing agent fees and expenses — R6 Shares		3,351			4,413			4,488			537
Reports to shareholders		544,300			632,700			663,450			101,290
Trustee fees and expenses (Note 4)		115,033			182,765			121,627			22,271
Registration and filing fees		79,690			90,160			80,700			61,250
Custodian and fund accounting fees		56,880			111,471			70,240			25,112
Professional fees		54,170			76,340			51,110			28,820
Insurance expense		32,935			51,620			29,377			7,396
Administration fees		28,028			31,668			28,028			23,478
Line of credit fees		26,600			38,720			23,000			3,974
Miscellaneous expenses		2,425			2,425			2,516			2,449

Total operating expenses		25,525,838			39,762,839			23,597,666			4,984,415
Interest expense on borrowings		—			857,865			—			2,821

Total expenses		25,525,838			40,620,704			23,597,666			4,987,236
Reimbursement of expenses by Adviser — Retail Shares (Note 4)		—			—			—			—
Reimbursement of expenses by Adviser — Institutional Shares (Note 4)		—			—			—			—
Reimbursement of expenses by Adviser — R6 Shares (Note 4)		—			—			—			—

Net expenses		25,525,838			40,620,704			23,597,666			4,987,236

Net investment income (loss)		(12,699,105	)		5,749,812			(7,419,956	)		(3,695,690	)

Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments sold — Unaffiliated investments		39,759,453			115,226,818			70,412,069			1,337,283
Net realized gain (loss) on investments sold — “Affiliated” investments		—			4,871,918			—			—
Net realized gain (loss) on foreign currency transactions		—			(18,076	)		10,180			(14,958	)
Change in net unrealized appreciation (depreciation) of:
Investments — Unaffiliated investments		681,682,072			1,003,887,331			479,516,942			98,854,225
Investments — “Affiliated” investments		—			156,481,934			—			—
Foreign currency translations		—			865			5,304			—

Net gain (loss) on investments		721,441,525			1,280,450,790			549,944,495			100,176,550

Voluntary payment from Adviser (Note 4)		—			—			573			—

Net increase (decrease) in net assets resulting from operations	$	708,742,420		$	1,286,200,602		$	542,525,112		$	96,480,860


See Notes to Financial Statements.		31


Baron Funds		March 31, 2023

STATEMENTS OF OPERATIONS (Unaudited) (Continued)

FOR THE SIX MONTHS ENDED MARCH 31, 2023


	Baron Fifth Avenue Growth Fund			Baron Discovery Fund			Baron Durable Advantage Fund
Investment income:
Income:
Dividends — Unaffiliated investments	$	151,444		$	1,597,844		$	229,764
Dividends — “Affiliated” investments		—			—			—
Interest		37,770			1,146,917			27,185
Foreign taxes withheld on dividends		(9,560	)		—			(2,038	)

Total income		179,654			2,744,761			254,911

Expenses:
Investment advisory fees (Note 4)		1,301,270			6,126,731			159,566
Distribution fees — Retail Shares (Note 4)		101,859			187,885			10,742
Shareholder servicing agent fees and expenses — Retail Shares		16,700			16,700			7,772
Shareholder servicing agent fees and expenses — Institutional Shares		10,020			25,050			5,824
Shareholder servicing agent fees and expenses — R6 Shares		475			1,012			86
Reports to shareholders		30,910			164,150			4,082
Trustee fees and expenses (Note 4)		9,953			29,051			953
Registration and filing fees		35,360			54,460			72,990
Custodian and fund accounting fees		9,840			17,190			6,028
Professional fees		27,150			30,490			25,814
Insurance expense		3,667			9,410			348
Administration fees		22,932			23,068			22,568
Line of credit fees		2,120			6,776			287
Miscellaneous expenses		2,429			2,450			3,338

Total operating expenses		1,574,685			6,694,423			320,398
Interest expense on borrowings		26,843			—			—

Total expenses		1,601,528			6,694,423			320,398
Reimbursement of expenses by Adviser — Retail Shares (Note 4)		(27,636	)		—			(29,406	)
Reimbursement of expenses by Adviser — Institutional Shares (Note 4)		(47,622	)		—			(98,785	)
Reimbursement of expenses by Adviser — R6 Shares (Note 4)		(3,350	)		—			(9,625	)

Net expenses		1,522,920			6,694,423			182,582

Net investment income (loss)		(1,343,266	)		(3,949,662	)		72,329

Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments sold — Unaffiliated investments		17,423,238			(87,832,121	)		171,587
Net realized gain (loss) on investments sold — “Affiliated” investments		—			—			—
Net realized gain (loss) on foreign currency transactions		1,077			9,806			—
Change in net unrealized appreciation (depreciation) of:
Investments — Unaffiliated investments		23,486,252			223,504,145			9,259,184
Investments — “Affiliated” investments		—			—			—
Foreign currency translations		—			(8,060	)		—

Net gain (loss) on investments		40,910,567			135,673,770			9,430,771

Net increase (decrease) in net assets resulting from operations	$	39,567,301		$	131,724,108		$	9,503,100


32		See Notes to Financial Statements.


March 31, 2023		Baron Funds

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)


	Baron Asset Fund						Baron Growth Fund						Baron Small Cap Fund
	For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022			For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022			For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	(12,699,105	)	$	(39,888,672	)	$	5,749,812		$	(14,647,882	)	$	(7,419,956	)	$	(24,847,859	)
Net realized gain (loss)		39,759,453			(5,376,717	)		120,080,660			395,801,970			70,422,249			217,642,066
Change in net unrealized appreciation (depreciation)		681,682,072			(1,772,908,003	)		1,160,370,130			(2,688,911,203	)		479,522,246			(1,862,250,243	)
Voluntary payment from Adviser		—			—			—			—			573			—

Increase (decrease) in net assets resulting from operations		708,742,420			(1,818,173,392	)		1,286,200,602			(2,307,757,115	)		542,525,112			(1,669,456,036	)

Distributions to shareholders from:
Distributable earnings — Retail Shares		—			(211,761,982	)		(126,522,832	)		(230,029,244	)		(64,811,896	)		(210,707,973	)
Distributable earnings — Institutional Shares		—			(220,311,299	)		(245,086,782	)		(433,480,993	)		(138,254,528	)		(351,209,477	)
Distributable earnings — R6 Shares		—			(13,229,041	)		(10,116,757	)		(16,496,073	)		(9,940,890	)		(30,096,709	)

Decrease in net assets from distributions to shareholders		—			(445,302,322	)		(381,726,371	)		(680,006,310	)		(213,007,314	)		(592,014,159	)

Capital share transactions:
Proceeds from the sale of shares — Retail Shares		23,087,425			67,693,340			46,387,217			143,366,452			33,147,438			91,952,314
Proceeds from the sale of shares — Institutional Shares		180,893,341			369,864,331			409,062,598			642,645,942			185,749,736			1,071,531,285
Proceeds from the sale of shares — R6 Shares		5,264,006			20,026,405			23,971,887			44,312,218			17,662,890			51,805,643
Net asset value of shares issued in reinvestment of distributions — Retail Shares		—			203,731,267			122,932,828			223,933,348			63,171,722			205,550,096
Net asset value of shares issued in reinvestment of distributions — Institutional Shares		—			211,515,538			235,147,236			416,089,869			131,512,581			328,720,072
Net asset value of shares issues in reinvestment of distribution — R6 Shares		—			13,229,065			10,114,015			16,492,041			9,940,890			30,096,285
Cost of shares redeemed — Retail Shares		(92,132,133	)		(268,117,959	)		(144,947,434	)		(410,366,700	)		(107,085,552	)		(246,322,081	)
Cost of shares redeemed — Institutional Shares		(214,250,422	)		(579,052,258	)		(351,776,283	)		(992,190,235	)		(298,574,262	)		(600,948,465	)
Cost of shares redeemed — R6 Shares		(6,705,972	)		(14,854,484	)		(10,876,300	)		(40,262,023	)		(22,990,490	)		(54,836,253	)

Increase (decrease) in net assets derived from capital share transactions		(103,843,755	)		24,035,245			340,015,764			44,020,912			12,534,953			877,548,896

Net increase (decrease) in net assets		604,898,665			(2,239,440,469	)		1,244,489,995			(2,943,742,513	)		342,052,751			(1,383,921,299	)

Net Assets:
Beginning of period		3,926,230,740			6,165,671,209			6,258,228,911			9,201,971,424			3,932,535,248			5,316,456,547

End of period	$	4,531,129,405		$	3,926,230,740		$	7,502,718,906		$	6,258,228,911		$	4,274,587,999		$	3,932,535,248

Capital share transactions — Retail Shares
Shares sold		264,763			673,034			514,525			1,424,290			1,248,197			2,799,357
Shares issued in reinvestment of distributions		—			1,765,459			1,388,287			1,960,887			2,463,796			5,422,055
Shares redeemed		(1,051,211	)		(2,684,948	)		(1,620,412	)		(4,160,724	)		(4,091,301	)		(7,757,397	)

Net increase (decrease)		(786,448	)		(246,455	)		282,400			(775,547	)		(379,308	)		464,015

Capital share transactions — Institutional Shares
Shares sold		1,947,799			3,558,977			4,318,304			6,247,063			6,556,653			33,037,808
Shares issued in reinvestment of distributions		—			1,740,621			2,522,498			3,479,594			4,770,133			8,118,550
Shares redeemed		(2,298,543	)		(5,780,900	)		(3,737,762	)		(9,786,343	)		(10,537,105	)		(17,971,264	)

Net increase (decrease)		(350,744	)		(481,302	)		3,103,040			(59,686	)		789,681			23,185,094

Capital share transactions — R6 Shares
Shares sold		56,078			192,053			248,473			417,243			616,877			1,463,943
Shares issued in reinvestment of distributions		—			108,896			108,485			137,905			360,700			743,485
Shares redeemed		(71,266	)		(148,399	)		(116,747	)		(389,755	)		(807,990	)		(1,637,123	)

Net increase (decrease)		(15,188	)		152,550			240,211			165,393			169,587			570,305


See Notes to Financial Statements.		33


Baron Funds		March 31, 2023

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)


	Baron Opportunity Fund						Baron Fifth Avenue Fund
	For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022			For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	(3,695,690	)	$	(12,819,866	)	$	(1,343,266	)	$	(4,375,924	)
Net realized gain (loss)		1,322,325			(114,444,479	)		17,424,315			(40,287,484	)
Change in net unrealized appreciation (depreciation)		98,854,225			(450,974,822	)		23,486,252			(310,503,541	)
Voluntary payment from Adviser		—			—			—			2,806

Increase (decrease) in net assets resulting from operations		96,480,860			(578,239,167	)		39,567,301			(355,164,143	)

Distributions to shareholders from:
Distributable earnings — Retail Shares		—			(71,908,828	)		—			(5,787,989	)
Distributable earnings — Institutional Shares		—			(56,443,664	)		—			(18,618,604	)
Distributable earnings — R6 Shares		—			(2,851,069	)		—			(1,194,492	)

Decrease in net assets from distributions to shareholders		—			(131,203,561	)		—			(25,601,085	)

Capital share transactions:
Proceeds from the sale of shares — Retail Shares		10,401,182			90,140,013			4,046,116			18,549,655
Proceeds from the sale of shares — Institutional Shares		52,037,974			257,363,466			48,297,296			92,824,095
Proceeds from the sale of shares — R6 Shares		575,531			2,207,375			55,373			178,819
Net asset value of shares issued in reinvestment of distributions — Retail Shares		—			67,945,176			—			5,516,266
Net asset value of shares issued in reinvestment of distributions — Institutional Shares		—			55,956,931			—			17,875,277
Net asset value of shares issues in reinvestment of distribution — R6 Shares		—			2,844,939			—			1,194,492
Cost of shares redeemed — Retail Shares		(50,713,772	)		(197,463,874	)		(9,856,287	)		(41,581,582	)
Cost of shares redeemed — Institutional Shares		(83,910,703	)		(335,516,447	)		(65,576,721	)		(163,573,800	)
Cost of shares redeemed — R6 Shares		(982,095	)		(844,326	)		(159,365	)		(358,230	)

Increase (decrease) in net assets derived from capital share transactions		(72,591,883	)		(57,366,747	)		(23,193,588	)		(69,375,008	)

Net increase (decrease) in net assets		23,888,977			(766,809,475	)		16,373,713			(450,140,236	)

Net Assets:
Beginning of period		847,226,608			1,614,036,083			387,070,084			837,210,320

End of period	$	871,115,585		$	847,226,608		$	403,443,797		$	387,070,084

Capital share transactions — Retail Shares
Shares sold		412,824			2,484,667			141,243			447,331
Shares issued in reinvestment of distributions		—			1,585,282			—			98,050
Shares redeemed		(2,035,150	)		(5,844,624	)		(346,311	)		(1,012,340	)

Net increase (decrease)		(1,622,326	)		(1,774,675	)		(205,068	)		(466,959	)

Capital share transactions — Institutional Shares
Shares sold		1,939,596			7,072,311			1,602,434			2,346,961
Shares issued in reinvestment of distributions		—			1,232,803			—			309,047
Shares redeemed		(3,190,719	)		(9,516,207	)		(2,218,153	)		(3,866,788	)

Net increase (decrease)		(1,251,123	)		(1,211,093	)		(615,719	)		(1,210,780	)

Capital share transactions — R6 Shares
Shares sold		22,379			65,134			1,805			4,066
Shares issued in reinvestment of distributions		—			62,595			—			20,645
Shares redeemed		(35,868	)		(25,022	)		(5,127	)		(8,514	)

Net increase (decrease)		(13,489	)		102,707			(3,322	)		16,197


34		See Notes to Financial Statements.


March 31, 2023		Baron Funds

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)


	Baron Discovery Fund						Baron Durable Advantage Fund
	For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022			For the Six Months Ended March 31, 2023			For the Year Ended September 30, 2022
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	(3,949,662	)	$	(13,475,018	)	$	72,329		$	(11,598	)
Net realized gain (loss)		(87,822,315	)		(75,552,920	)		171,587			(2,488,168	)
Change in net unrealized appreciation (depreciation)		223,496,085			(644,114,561	)		9,259,184			(7,952,242	)
Voluntary payment from Adviser		—			—			—			—

Increase (decrease) in net assets resulting from operations		131,724,108			(733,142,499	)		9,503,100			(10,452,008	)

Distributions to shareholders from:
Distributable earnings — Retail Shares		—			(9,414,668	)		—			(30,878	)
Distributable earnings — Institutional Shares		—			(60,239,989	)		—			(113,095	)
Distributable earnings — R6 Shares		—			(1,452,600	)		—			(13,889	)

Decrease in net assets from distributions to shareholders		—			(71,107,257	)		—			(157,862	)

Capital share transactions:
Proceeds from the sale of shares — Retail Shares		15,029,665			48,756,595			2,237,226			10,284,958
Proceeds from the sale of shares — Institutional Shares		200,452,180			586,671,824			20,199,143			24,671,094
Proceeds from the sale of shares — R6 Shares		4,693,430			36,375,153			1,917			91,467
Net asset value of shares issued in reinvestment of distributions — Retail Shares		—			9,287,250			—			30,578
Net asset value of shares issued in reinvestment of distributions — Institutional Shares		—			57,450,593			—			113,095
Net asset value of shares issues in reinvestment of distribution — R6 Shares		—			1,452,600			—			13,889
Cost of shares redeemed — Retail Shares		(24,668,515	)		(77,220,580	)		(2,307,646	)		(10,048,214	)
Cost of shares redeemed — Institutional Shares		(171,113,800	)		(732,766,259	)		(3,106,048	)		(20,973,005	)
Cost of shares redeemed — R6 Shares		(3,463,679	)		(11,516,145	)		(7,004	)		(21	)

Increase (decrease) in net assets derived from capital share transactions		20,929,281			(81,508,969	)		17,017,588			4,183,841

Net increase (decrease) in net assets		152,653,389			(885,758,725	)		26,520,688			(6,426,029	)

Net Assets:
Beginning of period		1,143,840,659			2,029,599,384			34,731,885			41,157,914

End of period	$	1,296,494,048		$	1,143,840,659		$	61,252,573		$	34,731,885

Capital share transactions — Retail Shares
Shares sold		634,604			1,672,260			142,423			565,882
Shares issued in reinvestment of distributions		—			264,594			—			1,524
Shares redeemed		(1,054,660	)		(2,662,561	)		(145,373	)		(577,318	)

Net increase (decrease)		(420,056	)		(725,707	)		(2,950	)		(9,912	)

Capital share transactions — Institutional Shares
Shares sold		8,272,140			20,118,331			1,260,189			1,322,560
Shares issued in reinvestment of distributions		—			1,602,527			—			5,588
Shares redeemed		(7,065,461	)		(25,486,239	)		(198,055	)		(1,189,441	)

Net increase (decrease)		1,206,679			(3,765,381	)		1,062,134			138,707

Capital share transactions — R6 Shares
Shares sold		191,314			1,171,794			121			5,307
Shares issued in reinvestment of distributions		—			40,519			—			687
Shares redeemed		(140,537	)		(410,088	)		(429	)		(1	)

Net increase (decrease)		50,777			802,225			(308	)		5,993


See Notes to Financial Statements.		35


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. ORGANIZATION

Baron Investment Funds Trust (the Trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company established as a Massachusetts business trust on February 19, 1987, and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies. The Trust currently offers seven series (individually, a Fund and collectively, the Funds): Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund.

Each Fund offers Retail Shares, Institutional Shares, and R6 Shares. Each class of shares differs only in its ongoing fees, expenses and eligibility requirements. Retail Shares are offered to all investors. Institutional Shares are for investments in the amount of $1 million or more per Fund. Institutional Shares are intended for certain financial intermediaries that offer shares of Baron Funds through fee-based platforms, retirement platforms, or other platforms. R6 Shares are available only to qualified 401(a) plans (including 401(k) plans, Keogh plans, profit sharing plans, money purchase pension plans, target benefit plans, defined benefit pension plans, and Taft-Hartley multiemployer pension plans) (collectively, Qualified Plans), endowment funds and foundations, any state, county or city, or its instrumentality, department, authority, or agency, 457 plans, including 457(a) governmental entity plans and tax-exempt plans, accounts registered to insurance companies, trust companies and bank trust departments, investment companies, both affiliated and not affiliated with BAMCO, Inc. (the Adviser), and any entity that is considered a corporation for tax purposes, including corporate non-qualified deferred compensation plans of such corporations. There is no minimum initial investment for Qualified Plans. All other R6 eligible investors must meet a minimum initial investment of at least $5 million per Fund. Each class of shares has equal rights to earnings and assets, except that each class bears different expenses for distribution and shareholder servicing. Each Fund’s investment income, realized and unrealized gains or losses on investments and foreign currency, and expenses other than those attributable to a specific class are allocated to each class based on its relative net assets. Each class of shares has exclusive voting rights with respect to matters that affect just that class. The investment goals of the Funds are as follows:

Baron Asset Fund seeks capital appreciation through long-term investments primarily in securities of medium-sized companies with undervalued assets or favorable growth prospects.

Baron Growth Fund seeks capital appreciation through long-term investments primarily in securities of small-sized growth companies.

Baron Small Cap Fund seeks capital appreciation through investments primarily in securities of small-sized growth companies.

Baron Opportunity Fund seeks capital appreciation through investments primarily in growth companies that benefit from technology advances.

Baron Fifth Avenue Growth Fund seeks capital appreciation through investments primarily in securities of large-sized growth companies.

Baron Discovery Fund seeks capital appreciation through investments primarily in securities of small-sized growth companies.

Baron Durable Advantage Fund seeks capital appreciation through long-term investments primarily in securities of large-sized companies.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the period. Actual results could differ from those estimates. Events occurring subsequent to the date of the Statements of Assets and Liabilities and through the date of issuance of the financial statements have been evaluated for adjustment to or disclosure in the financial statements.

a) Security Valuation. The Funds’ share prices or net asset values (NAV) are calculated as of the scheduled close of the regular trading session (usually 4 p.m. E.T. or such other time as of which the Funds’ NAVs are calculated (the NAV Calculation Time)) on the New York Stock Exchange (the Exchange) on any day the Exchange is scheduled to be open. Portfolio securities traded on any national stock exchange are valued based on the last sale price on the exchange where such shares are principally traded. For securities traded on NASDAQ, the Funds use the NASDAQ Official Closing Price. If there are no sales on a given day, the value of the security may be the average of the most recent bid and asked quotations on such exchange or the last sale price from a prior day. Where market quotations are not readily available, or, if in the Adviser’s judgment, they do not accurately reflect the 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 security will be valued by the Adviser using policies and procedures approved by the Board of Trustees (the Board). Some of the more common reasons that may necessitate that a security be valued using “fair value” pricing may include, but are not limited to: trading of the security has been halted or suspended; or the security has not been traded for an extended period of time. The Adviser has a Fair Valuation Committee (the Committee) comprised of senior management representatives and the Committee reports to the Board every quarter. Factors the Committee may consider when valuing a security 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 guarantee, 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.

U.S. Government obligations, money market instruments, and other debt instruments held by the Funds with a remaining maturity of 60 days or less are generally valued at amortized cost, which approximates fair value, unless an independent pricing service provides a valuation for such security or in the opinion of the Board or the Committee, the amortized cost method would not represent fair value. Debt instruments having a greater remaining maturity will be valued on the basis of prices obtained from a pricing service approved by the Board or at the mean of the bid and ask prices from the dealer maintaining an active market in that security. The value of the Funds’ investments in convertible bonds/convertible preferred stocks is determined primarily by obtaining valuations from independent pricing services based on readily available bid quotations or, if quotations are not available, by methods which include various considerations such as yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Other inputs used by an independent pricing service to value convertible bonds/convertible preferred stocks generally include underlying stock data, conversion premiums, listed bond and preferred stock prices and other market information which may include benchmark curves, trade execution data, sensitivity analysis, when available, or an estimated value calculated based on the price of the underlying common share on the valuation date adjusted for accrued and unpaid dividends. Open-end investment companies, including securities lending collateral invested in registered investment company money market funds, are valued at their NAV each day.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Non-U.S. equity securities traded on foreign securities exchanges are generally valued using an independent pricing vendor that provides daily fair value adjustment factors based on information such as local closing price, relevant general and sector indexes, currency fluctuations, and depositary receipts, as applicable. Securities valued using such adjustment factors are classified as Level 2 in the fair value hierarchy. The models of the independent pricing vendor generate an adjustment factor for each security, which is applied to the local closing price to adjust it for post-closing market movements up to the time the Funds are valued and translated into U.S. dollars. If the vendor does not provide an adjustment factor for a security, the security is valued based on its most recent local closing price and translated into U. S. dollars. The Adviser may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open. Other mutual funds may adjust the prices of their securities by different amounts.

b) Securities Transactions, Investment Income and Expense Allocation. Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on an identified cost basis for financial reporting and federal income tax purposes. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis, which includes the accretion of discounts and amortization of premiums. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Certain dividends from foreign securities will be recorded as soon as the Funds are informed of the dividend if such information is obtained subsequent to the ex-dividend date. Distributions received from certain investments held by the Funds may be comprised of dividends, realized gains and returns of capital. The Funds originally estimate the expected classification of such payments. The amounts may subsequently be reclassified upon receipt of information from the issuer. The Funds are charged for those expenses of the Trust that are directly attributable to each Fund, such as advisory and custodian fees. Expenses that are not directly attributable to a Fund are typically allocated among the Funds in proportion to their respective net assets.

c) Foreign Currency Translations. Values of assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the price of such currencies at the NAV Calculation Time. Purchases and sales of investments and dividend income are converted at the prevailing rate of exchange on the respective dates of such transactions. Net realized gain (loss) on foreign currency transactions includes gain (loss) arising from the fluctuation in the exchange rates between trade and settlement dates on security transactions and currency gain (loss) between the accrual and payment dates on dividends and foreign withholding taxes. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currency transactions on the Statements of Operations. The Funds may invest in foreign securities and foreign currency transactions that may involve risks not associated with domestic investments as a result of the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability, among others.

Pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are generally treated as ordinary income for U.S. federal income tax purposes.

d) Securities Lending. The Funds may lend securities to certain brokers under the terms of a master netting agreement. Upon such loans, the Funds receive collateral which is maintained by the custodian. The Funds may pay fees to the custodian for administering the securities lending program. The Funds earn interest on such collateral and earn income in the form of negotiated lenders’ fees, both of which are included in securities lending income in the Statements of Operations. Securities loaned are required to be secured at all times by collateral equal to at least 102% of the market value of the securities loaned. Risks may arise upon entering into securities lending to the extent that the value of the collateral is less than the value of the securities loaned due to the changes in the value of collateral or the loaned securities. The collateral is marked-to-market daily and settled on the next business day. The Funds may receive collateral in the form of cash or other eligible securities, such as a letter of credit issued by a U.S. bank or securities issued or guaranteed by the U.S. government. Securities purchased with cash collateral are subject to the risks inherent in investing in these securities.

There were no securities on loan at March 31, 2023.

e) Repurchase Agreements. The Funds may invest in repurchase agreements, which are short term investments whereby the Funds acquire ownership of a debt security and the seller agrees to repurchase the security at a future date at a specified price. When entering into repurchase agreements, it is the Funds’ policy that their custodian take possession of the underlying collateral securities, the market value of which, at all times, equals at least 102% of the principal amount of the repurchase transaction. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. The information required to be disclosed by FASB Accounting Standards Update No. 2011-11 for the Funds’ investments in repurchase agreements at March 31, 2023, including the fair value of the repurchase agreement and the amount of collateral, can be found in each respective Fund’s Statement of Net Assets.

f) Master Limited Partnerships. The Funds may invest in master limited partnerships (MLPs). MLPs are limited partnerships or limited liability companies, whose partnership units or limited liability interests are listed and traded on a U.S. securities exchange, and are treated as publicly traded partnerships for federal income tax purposes. To qualify to be treated as a partnership for tax purposes, an MLP must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended. These qualifying sources include interest, dividend, real property rent, gain from sale or other disposition of real property and income from activities such as the exploration, development, mining, production, processing, refining, transportation, storage and marketing of mineral or natural resources.

g) Special Purpose Acquisition Company. The Funds may acquire an interest in a special purpose acquisition company (SPAC) in an initial public offering (IPO), via a private placement or a secondary market transaction. A SPAC is typically a publicly traded company that raises investment capital via an IPO for the purpose of acquiring the equity securities of one or more existing companies via merger, combination, acquisition or other similar transactions. To the extent the SPAC is invested in cash or similar securities, this may negatively affect a Fund’s performance if the Fund is invested in the SPAC during such period. There is no guarantee that the SPACs will complete an acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. These transactions will require the approval of the respective shareholders and are subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the SPAC’s acquisition may not close and, to the extent a Fund had committed to participate in a private placement (i.e., PIPE transaction, defined below), the Fund will no longer be obligated to fulfill its commitment.


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

h) Private Investment in Public Equity. The Funds may acquire equity securities of an issuer that are issued through a private investment in public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A Fund will generally earmark an amount of cash or high quality securities equal to the amount of its commitment to purchase the when-issued securities. PIPE transactions typically involve the purchase of securities directly from a publicly traded company in a private placement transaction, including securities issued by a SPAC, typically at a discount to the market price of the company’s securities. There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of a Fund’s investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restriction can last an uncertain amount of time and may be many months. Until the public registration process is completed, securities acquired via a PIPE are restricted as to resale and a Fund cannot freely trade the securities. Generally, such restrictions cause these securities to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Publicly traded securities acquired via a PIPE transaction are typically valued at a discount to the market price of an issuer’s common stock and classified as Level 2 or Level 3 in the fair value hierarchy depending on the significance of the unobservable inputs. Discounts are applied due to certain trading restrictions imposed or a lack of marketability preceding the conversion to publicly traded securities. The primary inputs used in determining the discount are the length of the lock-up time period and volatility of the underlying security.

i) Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. None of the Funds will be subject to federal or state income taxes to the extent that they qualify as regulated investment companies and substantially all of their income is distributed.

The Funds may be subject to foreign taxes on income and gains on investments that are accrued based upon the Funds’ understanding of the tax rules and regulations that exist in the countries in which the Funds invest. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.

j) Restricted Securities. The Funds may invest in securities that are restricted as to public sale in accordance with the Securities Act of 1933. Such assets are valued by the Adviser pursuant to policies and procedures approved by the Board.

k) Distributions to Shareholders. Income and capital gain distributions to shareholders are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for net investment loss, foreign currency gains and losses, reclassification of distributions, partnership basis adjustments, late-year loss deferral, post-October loss deferral, and wash sale loss deferral.

l) Commitments and Contingencies. In the normal course of business, the Funds may enter into contracts and agreements that contain a variety of representations and warranties, which provide general indemnification. The maximum exposure to the Funds under these agreements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

m) Cash and Cash Equivalents. The Funds consider all short term liquid investments with a maturity of three months or less when purchased to be cash equivalents.

n) Use of Derivatives. The Funds began complying with Rule 18f-4 under the 1940 Act, which governs the use of derivative investments and certain financing transactions (e.g. reverse repurchase agreements) by registered investment companies. Among other things, Rule 18f-4 requires funds that invest in derivative instruments beyond a specified limited amount to apply a value-at-risk based limit to their use of certain derivative instruments and financing transactions and to adopt and implement a derivatives risk management program. A fund that uses derivative instruments in a limited amount will not be subject to the full requirements of Rule 18f-4. Compliance with Rule 18f-4 could, among other things, make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance.

3. PURCHASES AND SALES OF SECURITIES

Purchases and sales of securities, other than short term securities, for the six months ended March 31, 2023 were as follows:



Fund	Purchases		Sales
Baron Asset Fund	$	104,116,155	$	238,026,528
Baron Growth Fund		54,854,163		185,435,524
Baron Small Cap Fund		205,368,358		392,490,875
Baron Opportunity Fund		123,249,845		195,602,974
Baron Fifth Avenue Growth Fund		28,813,735		51,693,879
Baron Discovery Fund		200,487,263		236,713,171
Baron Durable Advantage Fund		18,529,425		1,224,857

4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

a) Investment Advisory Fees. The Adviser, a wholly owned subsidiary of Baron Capital Group, Inc. (BCG), serves as investment adviser to the Funds. As compensation for services rendered, the Adviser receives a fee payable monthly from Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, and Baron Discovery Fund equal to 1% per annum of the average daily net assets of the respective Fund. The Adviser receives a fee payable monthly from Baron Fifth Avenue Growth Fund and Baron Durable Advantage Fund equal to 0.70% per annum and 0.65% per annum of each Fund’s average daily net assets, respectively.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)

For Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund, the Adviser has contractually agreed to reduce its fee or reimburse Fund expenses, to the extent required to limit the net annual operating expense ratio (excluding portfolio transaction costs, interest, dividend and extraordinary expenses), as follows:



	Annual Operating Expense Ratio Cap

Fund	Retail Shares			Institutional Shares			R6 Shares
Baron Opportunity Fund		1.50	%		1.25	%		1.24	%
Baron Fifth Avenue Growth Fund		1.00	%		0.75	%		0.75	%
Baron Discovery Fund		1.35	%		1.10	%		1.09	%
Baron Durable Advantage Fund		0.95	%		0.70	%		0.70	%

b) Distribution Fees. Baron Capital, Inc. (BCI), a wholly owned subsidiary of BCG, is a registered broker-dealer and the distributor of the Funds’ shares. The Funds are authorized to pay BCI a distribution fee payable monthly pursuant to a distribution plan under Rule 12b-1 of the 1940 Act equal to 0.25% per annum of the Retail Shares’ average daily net assets of the respective Funds.

c) Trustee Fees. Certain Trustees of the Trust are interested persons (as defined by the 1940 Act) of the Trust. None of these Trustees received compensation for his or her services as a Trustee of the Trust. None of the Funds’ officers received compensation from the Funds for their services as an officer.

d) Fund Accounting and Administration Fees. The Funds have entered into an agreement with State Street Bank and Trust Company (State Street) to perform accounting and certain administrative services. State Street is compensated for fund accounting services based on a percentage of the Funds’ net assets, plus fixed annual fees for the administrative services.

e) Cross Trades. The Funds are permitted to purchase securities from, or sell securities to, other Funds within the Trust, the funds in Baron Select Funds, and other entities advised or subadvised by the Adviser, pursuant to “Cross-Trading Procedures” adopted by the Board. These procedures have been designed to ensure that any cross-trade of securities by the respective Baron Fund from or to another fund/other entity that is or could be considered an affiliate of a Fund under certain limited circumstances by virtue of having a common investment adviser, common officers, or common trustees complies with Rule 17a-7 under the 1940 Act. Further, as defined under these procedures, each cross-trade is effected at the current market price and with no commissions. Pursuant to these procedures, for the six months ended March 31, 2023, the Funds engaged in the following cross-trades:



	Purchases		Sales		Net Realized Gains (Losses)
Baron Opportunity Fund	$	—	$	2,335,800	$	(791,707	)
Baron Discovery Fund		2,335,800		—		—

f) Voluntary Payments. During the six months ended March 31, 2023, the Adviser made a voluntary payment to Baron Small Cap Fund in the amount of $573 to compensate the Fund for a loss incurred due to a trading error. The impact of this payment increased the Fund’s total return by less than 0.01%.

5. LINE OF CREDIT

The Funds, together with other funds in Baron Select Funds (except Baron Partners Fund), participate in a committed line of credit agreement with State Street to be used for temporary purposes, primarily for financing redemptions. Each fund may borrow up to the lesser of $200 million or the maximum amount each fund may borrow under the 1940 Act, the limitations included in each fund’s prospectus, or any limit or restriction under any law or regulation to which each fund is subject or any agreement to which each fund is a party; provided that the aggregate outstanding principal amount of all loans to any of the funds may not exceed $200 million. Interest is charged to each fund, based on its borrowings, at a rate per annum equal to the higher of the Overnight Bank Funding Rate plus 0.10% or the Federal Funds Effective Rate plus 0.10%; plus a margin of 1.00%. An upfront fee of 0.05% is incurred on the commitment amount and a commitment fee of 0.20% per annum is incurred on the unused portion of the line of credit. Both fees are allocated to the participating funds based on their relative net assets. During the six months ended March 31, 2023, Baron Growth Fund, Baron Opportunity Fund, and Baron Fifth Avenue Growth Fund had borrowings under the line of credit and incurred interest expense of $857,865, $2,821 and, $26,843, respectively. For the 110 days during which there were borrowings, Baron Growth Fund had an average daily balance on the line of credit of $56.6 million at a weighted average interest rate of 5.03%. For the 5 days during which there were borrowings, Baron Opportunity Fund had an average daily balance on the line of credit of $3.7 million at a weighted average interest rate of 5.51%. For the 36 days during which there were borrowings, Baron Fifth Avenue Growth Fund had an average daily balance on the line of credit of $5.1 million at a weighted average interest rate of 5.30%.


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

6. RESTRICTED SECURITIES

At March 31, 2023, investments in securities included securities that are restricted and/or illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale and are valued pursuant to the policies and procedures for fair value pricing approved by the Board. An illiquid investment is any investment that the Funds reasonably expect cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to the provisions of the Liquidity Rule governing classification of portfolio securities. The Funds may receive more or less than this valuation in an actual sale and that difference could be material. At March 31, 2023, the Funds held investments in restricted and/or illiquid securities that were valued pursuant to policies and procedures for fair value pricing as follows:



	Baron Asset Fund

Name of Issuer	Acquisition Date(s)		Value
Private Common Stocks
Space Exploration Technologies Corp.		1/25/2023	$	12,030,957
StubHub Holdings, Inc.		12/22/2021		25,492,077

Private Preferred Stocks
Space Exploration Technologies Corp.		8/4/2020		71,366,970


Total Restricted Securities			$	108,890,004

(Cost $88,500,527)^†(2.40% of Net Assets)

	Baron Growth Fund

Name of Issuer	Acquisition Date(s)		Value
Private Convertible Preferred Stocks
Farmers Business Network, Inc.		7/31/2020-9/15/2021	$	17,117,717
Northvolt AB		9/21/2020		16,516,573


Total Restricted Securities			$	33,634,290

(Cost $25,674,991)^†(0.45% of Net Assets)

	Baron Opportunity Fund

Name of Issuer	Acquisition Date(s)		Value
Private Common Stocks
GM Cruise Holdings LLC		5/19/2022	$	94,135
Space Exploration Technologies Corp.		3/25/2021		10,146,474
X Holdings I, Inc.		5/4/2022		4,476,000

Private Convertible Preferred Stocks
Farmers Business Network, Inc.		7/31/2020		7,689,394

Private Preferred Stocks
GM Cruise Holdings LLC		1/19/2021		7,285,229
Space Exploration Technologies Corp.		8/4/2020		13,724,532


Total Restricted Securities			$	43,415,764

(Cost $30,388,131)^†(4.98% of Net Assets)

	Baron Fifth Avenue Growth Fund

Name of Issuer	Acquisition Date(s)		Value
Private Common Stocks
Space Exploration Technologies Corp.		3/25/2021-12/3/2021	$	3,970,102

Private Preferred Stocks
GM Cruise Holdings LLC		1/19/2021		3,637,429


Total Restricted Securities			$	7,607,531

(Cost $6,012,083)^†( 1.89% of Net Assets)

†	See Statements of Net Assets for cost of individual securities.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

7. FAIR VALUE MEASUREMENTS

Fair value is defined by GAAP as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. GAAP provides a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•

Level 1 — quoted prices in active markets for identical assets or liabilities;

•

Level 2 — prices determined using other inputs that are observable either directly or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.);

•

Level 3 — prices determined using unobservable inputs when quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities. For example, non-U.S. securities, with markets that close hours before the Funds value their holdings, may require revised valuations to more accurately reflect their fair value. Since these values obtained from quoted prices in an active market are adjusted, such securities are reflected as Level 2.

The Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Funds primarily employ a market-based approach that may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine its fair value. The Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

The following is a summary of the inputs used as of March 31, 2023 in valuing the Funds’ investments carried at fair value:



	Baron Asset Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	4,388,625,827	$	—	$	—	$	4,388,625,827
Private Common Stocks^†		—		—		37,523,034		37,523,034
Private Preferred Stocks		—		—		71,366,970		71,366,970
Short Term Investments		—		35,238,344		—		35,238,344

Total Investments	$	4,388,625,827	$	35,238,344	$	108,890,004	$	4,532,754,175


	Baron Growth Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	7,400,986,570	$	4,202,829	$	—	$	7,405,189,399
Private Convertible Preferred Stocks^†		—		—		33,634,290		33,634,290
Short Term Investments		—		67,502,585		—		67,502,585

Total Investments	$	7,400,986,570	$	71,705,414	$	33,634,290	$	7,506,326,274


	Baron Small Cap Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	3,989,382,586	$	33,394,238	$	—	$	4,022,776,824
Short Term Investments		—		253,636,574		—		253,636,574

Total Investments	$	3,989,382,586	$	287,030,812	$	—	$	4,276,413,398

†	See Statement of Net Assets for additional detailed categorizations.


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

7. FAIR VALUE MEASUREMENTS (Continued)



	Baron Opportunity Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	814,143,104	$	—	$	—	$	814,143,104
Private Common Stocks^†		—		—		14,716,609		14,716,609
Private Convertible Preferred Stocks		—		—		7,689,394		7,689,394
Private Preferred Stocks^†		—		—		21,009,761		21,009,761
Short Term Investments		—		13,810,660		—		13,810,660

Total Investments	$	814,143,104	$	13,810,660	$	43,415,764	$	871,369,528


	Baron Fifth Avenue Growth Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	380,655,097	$	9,914,308	$	—	$	390,569,405
Private Common Stocks^†		—		—		3,970,102		3,970,102
Private Preferred Stocks		—		—		3,637,429		3,637,429
Short Term Investments		—		6,506,945		—		6,506,945

Total Investments	$	380,655,097	$	16,421,253	$	7,607,531	$	404,683,881


	Baron Discovery Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	1,198,637,217	$	8,524,468	$	—	$	1,207,161,685
Short Term Investments		—		86,654,673		—		86,654,673

Total Investments	$	1,198,637,217	$	95,179,141	$	—	$	1,293,816,358


	Baron Durable Advantage Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Common Stocks^†	$	60,746,728	$	—	$	—	$	60,746,728
Short Term Investments		—		390,576		—		390,576

Total Investments	$	60,746,728	$	390,576	$	—	$	61,137,304

†	See Statement of Net Assets for additional detailed categorizations.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

7. FAIR VALUE MEASUREMENTS (Continued)

The following is a reconciliation of investments in which unobservable inputs (Level 3) were used in determining fair value:



	Baron Asset Fund

Investments in Securities	Balance as of September 30, 2022			Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Change in Net Unrealized Appreciation (Depreciation)			Purchases		Sales/ Distributions		Transfers Into Level 3		Transfers Out of Level 3		Balance as of March 31, 2023		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at March 31, 2023
Private Common Stocks
Communication Services¹	$	24,543,535		$	—	$	—	$	948,542		$	—	$	—	$	—	$	—	$	25,492,077	$	948,542
Industrials		—							(469,069	)		12,500,026								12,030,957		(469,069	)

Private Preferred Stocks
Industrials		57,790,702			—		—		13,576,268			—		—		—		—		71,366,970		13,576,268

Total	$	82,334,237		$	—	$	—	$	14,055,741		$	12,500,026	$	—	$	—	$	—	$	108,890,004	$	14,055,741


	Baron Growth Fund

Investments in Securities	Balance as of September 30, 2022			Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Change in Net Unrealized Appreciation (Depreciation)			Purchases		Sales/ Distributions		Transfers Into Level 3		Transfers Out of Level 3		Balance as of March 31, 2023		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at March 31, 2023
Private Convertible Preferred Stocks
Industrials	$	17,811,468		$	—	$	—	$	(1,294,895	)	$	—	$	—	$	—	$	—	$	16,516,573	$	(1,294,895	)
Materials		13,626,318			—		—		3,491,399			—		—		—		—		17,117,717		3,491,399

Total	$	31,437,786		$	—	$	—	$	2,196,504		$	—	$	—	$	—	$	—	$	33,634,290	$	2,196,504


	Baron Opportunity Fund

Investments in Securities	Balance as of September 30, 2022			Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Change in Net Unrealized Appreciation (Depreciation)			Purchases		Sales/ Distributions		Transfers Into Level 3		Transfers Out of Level 3		Balance as of March 31, 2023		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at March 31, 2023
Private Common Stocks
Communication Services	$	—		$	—	$	—	$	(524,000	)	$	5,000,000	$	—	$	—	$	—	$	4,476,000	$	(524,000	)
Industrials		8,306,035			—		—		1,934,574			—		—		—		—		10,240,609		1,934,574

Private Convertible Preferred Stocks
Materials		7,009,499			—		—		679,895			—		—		—		—		7,689,394		679,895

Private Preferred Stocks
Industrials		18,105,267			—		—		2,904,494			—		—		—		—		21,009,761		2,904,494

Total	$	33,420,801		$	—	$	—	$	4,994,963		$	5,000,000	$	—	$	—	$	—	$	43,415,764	$	4,994,963

Unfunded Commitments	$	(13,122	)	$	—	$	—	$	13,122		$	—	$	—	$	—	$	—	$	—	$	—

¹	The GICS sector for StubHub Holdings, Inc. changed from Consumer Discretionary to Communication Services on 3/17/2023.


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

7. FAIR VALUE MEASUREMENTS (Continued)



	Baron Fifth Avenue Growth Fund

Investments in Securities	Balance as of September 30, 2022		Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Change in Net Unrealized Appreciation (Depreciation)		Purchases		Sales/ Distributions		Transfers Into Level 3		Transfers Out of Level 3		Balance as of March 31, 2023		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at March 31, 2023
Private Common Stocks
Industrials	$	3,214,862	$	—	$	—	$	755,240	$	—	$	—	$	—	$	—	$	3,970,102	$	755,240

Private Preferred Stocks
Industrials		3,490,813		—		—		146,616		—		—		—		—		3,637,429		146,616

Total	$	6,705,675	$	—	$	—	$	901,856	$	—	$	—	$	—	$	—	$	7,607,531	$	901,856

Unobservable valuation inputs developed by the Adviser for significant (greater than 1% of net assets) Level 3 investments as of March 31, 2023 were as follows:

Baron Asset Fund

Sector

Company

Fair Value as of
March 31, 2023

Valuation Technique

Unobservable Input

Weighted Average

used on

March 31, 2023

Range used on

March 31, 2023

Private Common Stocks:

Communication Services

StubHub Holdings, Inc.

$25,492,077

Combination of recent
transaction, current
value via
comparable companies,
option-pricing and
scenario analysis
methods

Change in the composite
equity index of comparable
companies

1.85%

1.16% - 2.34%

Discount for lack of

marketability

13.53%

11.10% - 14.34%

Estimated volatility of the
returns of equity¹

55.25%

37.55% - 69.23%

Scenario Probabilities:

Scenario A / Scenario B

/ Scenario C²

90% / 9% / 1%

1% - 90%

Private Common and Preferred Stocks:

Industrials

Space Exploration
Technologies Corp.

$83,397,927

Combination of recent
transaction, current
value via comparable
companies, and
option-pricing methods

Change in the composite

equity index of

comparable companies

1.19%

(0.10)% - 3.30%

Discount for lack of

marketability

4.28%

Estimated volatility of the

returns of equity³

37.40%

22.42% - 67.12%

Baron Opportunity Fund

Sector

Company

Fair Value as of
March 31, 2023

Valuation Technique

Unobservable Input

Weighted Average

used on

March 31, 2023

Range used on

March 31, 2023

Private Common Stocks:

Communication Services

X Holdings I, Inc.

$4,476,000

Combination of recent
transaction, current
value via comparable
companies, and
option-pricing methods

Change in the composite
equity index of comparable
companies

2.84%

0.23% - 3.53%

Discount for lack of

marketability

30.51%

Estimated volatility of the
returns of equity³

70.57%

32.68 - 87.71%

Private Common and Preferred Stocks:

Industrials

Space Exploration
Technologies Corp.

$23,871,006

Combination of recent
transaction, current
value via comparable
companies, and
option-pricing methods

Change in the composite
equity index of comparable
companies

1.19%

(0.10)% - 3.30%

Discount for lack of

marketability

4.28%

Estimated volatility of the
returns of equity³

37.40%

22.42% - 67.12%

See footnotes on page 45.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

7. FAIR VALUE MEASUREMENTS (Continued)

Baron Opportunity Fund (continued)

Sector

Company

Fair Value as of
March 31, 2023

Valuation Technique

Unobservable Input

Weighted Average

used on

March 31, 2023

Range used on

March 31, 2023

Private Common and

Preferred Stocks:

Industrials

GM Cruise Holdings
LLC

$7,379,364

Combination of recent
transaction, current
value via comparable
companies, option-
pricing, and scenario
analysis methods

Change in the composite

equity index of

comparable companies

1.15%

(0.53)% - 2.88%

Discount for lack of

marketability

12.08%

Estimated volatility of

the returns of equity⁴

39.33%

27.90% - 90.67%

Scenario Probabilities:

Scenario A / Scenario B⁵

70% / 30%

30% - 70%

Private Convertible Preferred Stocks:

Materials

Farmers Business
Network, Inc.

$7,689,394

Combination of recent
transaction, current
value via comparable
companies, option-
pricing, and scenario
analysis methods

Change in the composite
equity index of comparable
companies

2.12%

(1.16)% - 10.87%

Discount for lack of
marketability

19.47%

Estimated volatility of the
returns of equity³

62.88%

27.67% - 171.70%

Scenario Probabilities:

Scenario A / Scenario B⁵

90% / 10%

10% - 90%

Baron Fifth Avenue Growth Fund

Sector

Company

Fair Value as of
March 31, 2023

Valuation Technique

Unobservable Input

Weighted Average

used on March 31,
2023

Range used on

March 31, 2023

Private Common Stocks:

Industrials

Space Exploration
Technologies Corp.

$3,970,102

Combination of recent
transaction, current
value via comparable
companies, and
option-pricing methods

Change in the composite
equity index of comparable
companies

1.19%

(0.10)% - 3.30%

Discount for lack of

marketability

4.28%

Estimated volatility of the
returns of equity³

37.40%

22.42% - 67.12%

Private Preferred Stocks:

Industrials

GM Cruise Holdings
LLC

$3,637,429

Combination of recent
transaction, current
value via comparable
companies, option-
pricing, and scenario
analysis methods

Change in the composite
equity index of comparable
companies

1.15%

(0.53)% - 2.88%

Discount for lack of

marketability

12.08%

Estimated volatility of the

returns of equity⁴

39.33%

27.90% - 90.67%

Scenario Probabilities:

Scenario A / Scenario B⁵

70% / 30%

30% - 70%

¹	The volatility was calculated as a weighted-average of the volatilities of the individual comparable companies. Some companies have a higher weight in the calculation than others.

²	Scenario A represents a Direct Listing/ IPO Event, Scenario B represents an Other Sale Event, and Scenario C represents a Liquidation Event.

³	The volatility was calculated as a weighted-average of the volatilities of several groups of comparable companies with different industry focus. Each group’s volatility was calculated as the simple average volatilities of comparable companies in the group.

⁴	The volatility was calculated as a weighted-average of the volatilities of the individual comparable companies and an ETF. Some companies have a higher weight in the calculation than others.

⁵	Scenario A represents an IPO Event, while Scenario B represents a Liquidation/M&A Event.

A significant change in the EV/EBITDA multiple ratio may result in a directionally similar significant change in the fair value measurement, while a significant change in the discount for lack of marketability and equity index of comparable companies may not result in a materially higher or lower fair value measurement.


Baron Funds		March 31, 2023

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS

Federal income tax regulations differ from GAAP. Therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and net realized gain for financial reporting purposes. Net investment income (loss) and net realized and unrealized gain (loss) differ for financial statement and tax purposes due to differing treatments of net investment loss, foreign currency gains and losses, reclassification of distributions, partnership basis adjustments, late year loss deferral, post-October loss deferral, and wash sale loss deferral. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences.

As of March 31, 2023, the components of net assets on a tax basis were as follows:



	Baron Asset Fund			Baron Growth Fund			Baron Small Cap Fund			Baron Opportunity Fund			Baron Fifth Avenue Growth Fund			Baron Discovery Fund			Baron Durable Advantage Fund
Cost of investments	$	1,358,040,364		$	1,233,714,518		$	2,349,510,841		$	510,082,945		$	281,477,891		$	1,149,660,855		$	52,204,992

Gross tax unrealized appreciation		3,216,265,105			6,281,588,312			2,028,527,533			363,962,625			156,457,606			283,165,296			9,668,125
Gross tax unrealized depreciation		(41,551,294	)		(8,976,556	)		(101,624,976	)		(2,676,042	)		(33,251,616	)		(139,009,793	)		(735,813	)

Net tax unrealized appreciation (depreciation)		3,174,713,811			6,272,611,756			1,926,902,557			361,286,583			123,205,990			144,155,503			8,932,312
Net tax unrealized currency appreciation (depreciation)		—			865			5,304			—			—			(754	)		—
Undistributed (accumulated) net investment income (loss)		(39,010,395	)		(3,297,454	)		(23,998,721	)		(11,898,306	)		(4,136,010	)		(12,770,054	)		56,391
Undistributed (accumulated) net realized gain (loss)		33,284,732			111,207,692			69,182,732			(114,749,997	)		(23,270,529	)		(170,647,943	)		(2,319,380	)
Paid-in capital		1,362,141,257			1,122,196,047			2,302,496,127			636,477,305			307,644,346			1,335,757,296			54,583,250

Net Assets	$	4,531,129,405		$	7,502,718,906		$	4,274,587,999		$	871,115,585		$	403,443,797		$	1,296,494,048		$	61,252,573

As of September 30, 2022, the Funds had capital loss carryforwards as follows:



	Baron Asset Fund		Baron Growth Fund		Baron Small Cap Fund		Baron Opportunity Fund		Baron Fifth Avenue Growth Fund		Baron Discovery Fund		Baron Durable Advantage Fund
Short term capital loss carryforwards:
No expiration date	$	6,266,102	$	—	$	—	$	104,075,170	$	—	$	78,496,896	$	2,484,850

The tax character of distributions paid during the six months ended March 31, 2023 and the year ended September 30, 2022 was as follows:



	Six Months Ended March 31, 2023				Year Ended September 30, 2022

Fund	Ordinary¹		Long Term Capital Gain		Ordinary¹		Long Term Capital Gain
Baron Asset Fund	$	—	$	—	$	—	$	445,302,322
Baron Growth Fund		—		381,726,371		—		680,006,310
Baron Small Cap Fund		—		213,007,314		—		592,014,159
Baron Opportunity Fund		—		—		73,101,756		58,101,805
Baron Fifth Avenue Growth Fund		—		—		—		25,601,085
Baron Discovery Fund		—		—		42,606,495		28,500,762
Baron Durable Advantage Fund		—		—		—		157,862

¹	For tax purposes, short-term capital gains are considered ordinary income distributions.

The Funds follow the provisions of FASB Codification Section 740 (ASC Section 740) “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return. ASC Section 740 sets forth a threshold for financial statement recognition, measurement and disclosure of tax positions taken or expected to be taken on a tax return. The Funds are required to recognize the tax effects of certain tax positions under a “more likely than not” standard, that based on their technical merits, have more than 50% likelihood of being sustained upon examination. Management has analyzed the tax positions taken on the Funds’ federal income tax returns for all open years (current and prior three years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. At March 31, 2023, the Funds did not have any uncertain tax benefits that require recognition, de-recognition or disclosure. The Funds’ federal, state and local income and federal excise tax returns for which the applicable statutes of limitations have not expired (current and prior three years) are subject to examination by the Internal Revenue Service and state departments of revenue.


March 31, 2023		Baron Funds

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

9. OWNERSHIP CONCENTRATION

As of March 31, 2023, the officers, trustees, and portfolio managers owned, directly or indirectly, 11.98% Baron Fifth Avenue Growth Fund and 12.52% of Baron Durable Advantage Fund. As a result of their ownership, these investors may be able to materially affect the outcome of matters presented to Baron Fifth Avenue Growth Fund and Baron Durable Advantage Fund shareholders.

10. TRANSACTIONS IN “AFFILIATED” COMPANIES¹

BARON GROWTH FUND



Name of Issuer	Value at September 30, 2022		Purchase Cost		Sales Proceeds/ Return of Capital		Change in Net Unrealized Appreciation (Depreciation)		Realized Gains/ (Losses)		Dividend Income		Shares Held at March 31, 2023		Value at March 31, 2023		% of Net Assets at March 31, 2023
“Affiliated” Company as of March 31, 2023:
Choice Hotels International, Inc.	$	325,822,000	$	—	$	1,219,336	$	21,851,703	$	1,013,983	$	1,556,625		2,965,000	$	347,468,350		4.63	%
Iridium Communications, Inc.		350,523,000		—		4,408,916		134,630,231		3,857,935		1,017,250		7,825,000		484,602,250		6.46	%

	$	676,345,000	$	—	$	5,628,252	$	156,481,934	$	4,871,918	$	2,573,875			$	832,070,600

¹	An “Affiliated” company (“affiliated person” as defined in the 1940 Act), is a company in which a Fund held 5% or more of the company’s outstanding voting securities at any time during the six months ended March 31, 2023.

11. RECENT ACCOUNTING PRONOUNCEMENT

In June 2022, the FASB issued Accounting Standards Update No. 2022-03 (ASU 2022-03), “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (Topic 820). ASU 2022-03 clarifies the guidance in Topic 820, related to the measurement of the fair value of an equity security subject to contractual sale restrictions, where it eliminates the need to apply a discount to fair value of these securities, and introduces disclosure requirements related to such equity securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. The Adviser is currently evaluating the implications, if any, of the additional requirements and their impact on the Funds’ financial statements.


Baron Funds		March 31, 2023

FINANCIAL HIGHLIGHTS (Unaudited)

BARON ASSET FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:													Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) on investments ($)			Total from investment operations ($)			Net investment income ($)		Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		77.43		(0.31	)		14.30			13.99			0.00		0.00			0.00			91.42		18.07	²		2,082.5		1.30	³		(0.72	)³		2.39	²

Year Ended September 30,

2022		120.59		(0.90	)		(33.27	)		(34.17	)		0.00		(8.99	)		(8.99	)		77.43		(30.79	)		1,824.8		1.29			(0.91	)		4.58

2021		99.64		(1.16	)		25.50			24.34			0.00		(3.39	)		(3.39	)		120.59		24.96			2,871.7		1.29	⁴		(1.02	)		9.54

2020		82.28		(0.72	)		19.58			18.86			0.00		(1.50	)		(1.50	)		99.64		23.22			2,498.6		1.31			(0.82	)		9.28

2019		81.43		(0.56	)		6.17			5.61			0.00		(4.76	)		(4.76	)		82.28		7.82			2,242.0		1.30			(0.73	)		11.83

2018		70.87		(0.59	)		16.09			15.50			0.00		(4.94	)		(4.94	)		81.43		23.11			2,259.7		1.30			(0.79	)		9.87

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		81.71		(0.21	)		15.09			14.88			0.00		0.00			0.00			96.59		18.21	²		2,293.5		1.05	³		(0.46	)³		2.39	²

Year Ended September 30,

2022		126.47		(0.68	)		(35.09	)		(35.77	)		0.00		(8.99	)		(8.99	)		81.71		(30.61	)		1,968.9		1.04			(0.65	)		4.58

2021		104.08		(0.91	)		26.69			25.78			0.00		(3.39	)		(3.39	)		126.47		25.29			3,108.2		1.03	⁴		(0.76	)		9.54

2020		85.67		(0.52	)		20.43			19.91			0.00		(1.50	)		(1.50	)		104.08		23.53			2,505.4		1.05			(0.57	)		9.28

2019		84.36		(0.38	)		6.45			6.07			0.00		(4.76	)		(4.76	)		85.67		8.11			1,979.7		1.05			(0.48	)		11.83

2018		73.07		(0.41	)		16.64			16.23			0.00		(4.94	)		(4.94	)		84.36		23.43			1,315.7		1.04			(0.53	)		9.87

R6 SHARES

Six Months Ended March 31,

2023		81.70		(0.21	)		15.07			14.86			0.00		0.00			0.00			96.56		18.19	²		155.1		1.05	³		(0.46	)³		2.39	²

Year Ended September 30,

2022		126.45		(0.67	)		(35.09	)		(35.76	)		0.00		(8.99	)		(8.99	)		81.70		(30.61	)		132.5		1.04			(0.65	)		4.58

2021		104.07		(0.91	)		26.68			25.77			0.00		(3.39	)		(3.39	)		126.45		25.28			185.8		1.04	⁴		(0.76	)		9.54

2020		85.65		(0.52	)		20.44			19.92			0.00		(1.50	)		(1.50	)		104.07		23.55			147.3		1.05			(0.57	)		9.28

2019		84.35		(0.38	)		6.44			6.06			0.00		(4.76	)		(4.76	)		85.65		8.09			109.0		1.05			(0.47	)		11.83

2018		73.06		(0.41	)		16.64			16.23			0.00		(4.94	)		(4.94	)		84.35		23.43			73.5		1.04			(0.54	)		9.87

¹	Based on average shares outstanding.

²	Not Annualized.

³	Annualized.

⁴	Interest expense rounds to less than 0.01%.


48		See Notes to Financial Statements.


March 31, 2023		Baron Funds

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON GROWTH FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less Distributions shareholders from:													Ratios/Supplemental Datas:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) ($)			Total from investment operations ($)			Net investment income ($)		Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of total expenses to average net assets (%)			Less: interest expense (%)			Ratio of net operating expenses to average net assets (%)			Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		80.38		(0.01	)		16.38			16.37			0.00		(5.12	)		(5.12	)		91.63		20.59	³		2,323.8		1.32	⁴		(0.03	)⁴		1.29	⁴		(0.02	)⁴		0.77	³

Year Ended September 30,

2022		117.64		(0.35	)		(27.94	)		(28.29	)		0.00		(8.97	)		(8.97	)		80.38		(26.31	)		2,015.6		1.30			(0.01	)		1.29			(0.36	)		0.44

2021		90.65		(0.81	)		32.65			31.84			0.00		(4.85	)		(4.85	)		117.64		36.19	⁷		3,041.4		1.29			(0.00	)²		1.29			(0.75	)		1.37

2020		78.95		(0.35	)		15.10			14.75			0.00		(3.05	)		(3.05	)		90.65		19.08			2,535.3		1.30			(0.00	)²		1.30			(0.44	)		1.63

2019		80.68		(0.16	)		3.56			3.40			0.00		(5.13	)		(5.13	)		78.95		5.09			2,507.0		1.29			(0.00	)²		1.29			(0.21	)		1.93

2018		71.77		(0.17	)		16.98			16.81			0.00		(7.90	)		(7.90	)		80.68		25.55			2,747.8		1.29			(0.00	)²		1.29			(0.24	)		2.92

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		84.34		0.12			17.20			17.32			0.00		(5.12	)		(5.12	)		96.54		20.75	³		4,962.2		1.06	⁴		(0.02	)⁴		1.04	⁴		0.24	⁴		0.77	³

Year Ended September 30,

2022		122.73		(0.10	)		(29.32	)		(29.42	)		0.00		(8.97	)		(8.97	)		84.34		(26.12	)		4,073.5		1.04			(0.01	)		1.03			(0.10	)		0.44

2021		94.15		(0.56	)		33.99			33.43			0.00		(4.85	)		(4.85	)		122.73		36.55	⁷		5,934.8		1.03			(0.00	)²		1.03			(0.50	)		1.37

2020		81.69		(0.16	)		15.67			15.51			0.00		(3.05	)		(3.05	)		94.15		19.38			4,608.4		1.04			(0.00	)²		1.04			(0.20	)		1.63

2019		83.09		0.03			3.70			3.73			0.00		(5.13	)		(5.13	)		81.69		5.36			4,150.9		1.04			(0.00	)²		1.04			0.03			1.93

2018		73.52		0.01			17.46			17.47			0.00		(7.90	)		(7.90	)		83.09		25.86			4,134.2		1.03			(0.00	)²		1.03			0.01			2.92

R6 SHARES

Six Months Ended March 31,

2023		84.35		0.12			17.20			17.32			0.00		(5.12	)		(5.12	)		96.55		20.75	³		216.7		1.06	⁴		(0.02	)⁴		1.04	⁴		0.25	⁴		0.77	³

Year Ended September 30,

2022		122.75		(0.11	)		(29.32	)		(29.43	)		0.00		(8.97	)		(8.97	)		84.35		(26.13	)		169.1		1.04			(0.01	)		1.03			(0.10	)		0.44

2021		94.16		(0.56	)		34.00			33.44			0.00		(4.85	)		(4.85	)		122.75		36.56	⁷		225.8		1.03			(0.00	)²		1.03			(0.50	)		1.37

2020		81.70		(0.17	)		15.68			15.51			0.00		(3.05	)		(3.05	)		94.16		19.38			167.8		1.04			(0.00	)²		1.04			(0.20	)		1.63

2019		83.10		0.00	⁵		3.73			3.73			0.00		(5.13	)		(5.13	)		81.70		5.36			131.6		1.04			(0.00	)²		1.04			0.00	⁶		1.93

2018		73.52		(0.00	)⁵		17.48			17.48			0.00		(7.90	)		(7.90	)		83.10		25.88			107.4		1.04			(0.00	)²		1.04			(0.00	)⁶		2.92

¹	Based on average shares outstanding.

²	Interest expense rounds to less than 0.01%.

³	Not Annualized.

⁴	Annualized.

⁵	Less than $0.01 per share.

⁶	Less than 0.01%.

⁷	The Adviser made a voluntary payment to the Fund in the amount of $739,525 to compensate the Fund for a loss incurred due to a valuation error. The impact of this payment increased the Fund’s total return by 0.01%.


See Notes to Financial Statements.		49


Baron Funds		March 31, 2023

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON SMALL CAP FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:													Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) on investments ($)			Total from investment operations ($)			Net investment income ($)		Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		24.98		(0.07	)		3.48			3.41			0.00		(1.45	)		(1.45	)		26.94		13.95	²		1,214.2		1.31	³		(0.54	)³		5.17	²

Year Ended September 30,

2022		40.67		(0.23	)		(10.74	)		(10.97	)		0.00		(4.72	)		(4.72	)		24.98		(30.93	)		1,135.1		1.30			(0.72	)		16.83

2021		35.06		(0.16	)		9.89			9.73			0.00		(4.12	)		(4.12	)		40.67		29.77			1,829.5		1.29			(0.40	)		15.70

2020		29.44		(0.29	)		8.73			8.44			0.00		(2.82	)		(2.82	)		35.06		30.60			1,511.3		1.31			(0.98	)		16.93

2019		33.68		(0.27	)		(1.36	)		(1.63	)		0.00		(2.61	)		(2.61	)		29.44		(4.17	)		1,451.9		1.31			(0.95	)		13.44

2018		30.64		(0.32	)		7.21			6.89			0.00		(3.85	)		(3.85	)		33.68		25.00			1,831.3		1.30			(1.05	)		14.19

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		26.74		(0.04	)		3.73			3.69			0.00		(1.45	)		(1.45	)		28.98		14.09	²		2,855.6		1.05	³		(0.28	)³		5.17	²

Year Ended September 30,

2022		43.12		(0.15	)		(11.51	)		(11.66	)		0.00		(4.72	)		(4.72	)		26.74		(30.76	)		2,613.0		1.04			(0.44	)		16.83

2021		36.86		(0.06	)		10.44			10.38			0.00		(4.12	)		(4.12	)		43.12		30.11			3,214.2		1.03			(0.15	)		15.70

2020		30.74		(0.23	)		9.17			8.94			0.00		(2.82	)		(2.82	)		36.86		30.96			2,724.6		1.05			(0.74	)		16.93

2019		34.95		(0.21	)		(1.39	)		(1.60	)		0.00		(2.61	)		(2.61	)		30.74		(3.91	)		2,267.3		1.05			(0.69	)		13.44

2018		31.58		(0.25	)		7.47			7.22			0.00		(3.85	)		(3.85	)		34.95		25.33			2,696.7		1.04			(0.79	)		14.19

R6 SHARES

Six Months Ended March 31,

2023		26.73		(0.04	)		3.73			3.69			0.00		(1.45	)		(1.45	)		28.97		14.09	²		204.8		1.06	³		(0.28	)³		5.17	²

Year Ended September 30,

2022		43.10		(0.14	)		(11.51	)		(11.65	)		0.00		(4.72	)		(4.72	)		26.73		(30.75	)		184.4		1.04			(0.41	)		16.83

2021		36.85		(0.06	)		10.43			10.37			0.00		(4.12	)		(4.12	)		43.10		30.09			272.8		1.04			(0.16	)		15.70

2020		30.73		(0.23	)		9.17			8.94			0.00		(2.82	)		(2.82	)		36.85		30.97			218.5		1.05			(0.74	)		16.93

2019		34.94		(0.21	)		(1.39	)		(1.60	)		0.00		(2.61	)		(2.61	)		30.73		(3.91	)		161.9		1.05			(0.70	)		13.44

2018		31.57		(0.26	)		7.48			7.22			0.00		(3.85	)		(3.85	)		34.94		25.34			155.2		1.05			(0.82	)		14.19

¹	Based on average shares outstanding.

²	Not Annualized.

³	Annualized.


50		See Notes to Financial Statements.


March 31, 2023		Baron Funds

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON OPPORTUNITY FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:													Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) ($)			Total from investment operations ($)			Net investment income ($)		Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Net investment income (loss) (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		24.72		(0.13	)		3.21			3.08			0.00		0.00			0.00			27.80		12.46	²		459.5		1.33	^3,4		(1.02	)³		14.97	²

Year Ended September 30,

2022		43.49		(0.39	)		(14.78	)		(15.17	)		0.00		(3.60	)		(3.60	)		24.72		(38.38	)		448.5		1.31	⁴		(1.15	)		30.75

2021		35.11		(0.49	)		11.65			11.16			0.00		(2.78	)		(2.78	)		43.49		33.58			866.5		1.31	⁴		(1.19	)		38.74

2020		21.53		(0.30	)		15.56			15.26			0.00		(1.68	)		(1.68	)		35.11		75.25			644.9		1.34	⁴		(1.14	)		42.52

2019		22.02		(0.22	)		0.66			0.44			0.00		(0.93	)		(0.93	)		21.53		2.51			302.6		1.34	⁴		(1.07	)		37.10

2018		18.53		(0.22	)		6.36			6.14			0.00		(2.65	)		(2.65	)		22.02		37.41			363.6		1.37	⁴		(1.13	)		23.97

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		26.24		(0.10	)		3.41			3.31			0.00		0.00			0.00			29.55		12.61	²		385.7		1.07	^3,4		(0.76	)³		14.97	²

Year Ended September 30,

2022		45.85		(0.32	)		(15.69	)		(16.01	)		0.00		(3.60	)		(3.60	)		26.24		(38.23	)		375.3		1.05	⁴		(0.90	)		30.75

2021		36.79		(0.41	)		12.25			11.84			0.00		(2.78	)		(2.78	)		45.85		33.91			711.4		1.05	⁴		(0.93	)		38.74

2020		22.42		(0.25	)		16.30			16.05			0.00		(1.68	)		(1.68	)		36.79		75.82			409.5		1.08	⁴		(0.88	)		42.52

2019		22.83		(0.18	)		0.70			0.52			0.00		(0.93	)		(0.93	)		22.42		2.78			94.4		1.09	⁴		(0.82	)		37.10

2018		19.08		(0.18	)		6.58			6.40			0.00		(2.65	)		(2.65	)		22.83		37.73			96.4		1.11	⁴		(0.88	)		23.97

R6 SHARES

Six Months Ended March 31,

2023		26.27		(0.10	)		3.41			3.31			0.00		0.00			0.00			29.58		12.60	²		25.9		1.07	^3,4		(0.76	)³		14.97	²

Year Ended September 30,

2022		45.90		(0.32	)		(15.71	)		(16.03	)		0.00		(3.60	)		(3.60	)		26.27		(38.23	)		23.4		1.05	⁴		(0.89	)		30.75

2021		36.82		(0.41	)		12.27			11.86			0.00		(2.78	)		(2.78	)		45.90		33.94			36.1		1.05	⁴		(0.93	)		38.74

2020		22.45		(0.24	)		16.29			16.05			0.00		(1.68	)		(1.68	)		36.82		75.71			25.7		1.08	⁴		(0.87	)		42.52

2019		22.86		(0.18	)		0.70			0.52			0.00		(0.93	)		(0.93	)		22.45		2.78			14.5		1.08	⁴		(0.81	)		37.10

2018		19.09		(0.17	)		6.59			6.42			0.00		(2.65	)		(2.65	)		22.86		37.83			14.0		1.09	⁴		(0.82	)		23.97

¹	Based on average shares outstanding.

²	Not Annualized.

³	Annualized.

⁴	Interest expense rounds to less than 0.01%.


See Notes to Financial Statements.		51


Baron Funds		March 31, 2023

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON FIFTH AVENUE GROWTH FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:														Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) on investments ($)			Total from investment operations ($)			Net investment income ($)			Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Less: Reimbursement of expenses by Adviser (%)			Less: Interest Expense (%)			Ratio of net operating expenses to average net assets (%)			Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		28.73		(0.13	)		3.31			3.18			0.00			0.00			0.00			31.91		11.07	^2,3		86.9		1.08	⁴		(0.07	)⁴		(0.01	)⁴		1.00	⁴		(0.92	)⁴		7.62	³

Year Ended September 30,

2022		55.33		(0.39	)		(24.49	)		(24.88	)		0.00			(1.72	)		(1.72	)		28.73		(46.49	)^2,5		84.2		1.03			(0.03	)		0.00	⁷		1.00			(0.92	)		37.41

2021		46.62		(0.46	)		9.35			8.89			0.00			(0.18	)		(0.18	)		55.33		19.13	²		187.8		1.02			(0.02	)		0.00			1.00			(0.88	)		15.87

2020		32.10		(0.26	)		15.77			15.51			0.00			(0.99	)		(0.99	)		46.62		49.56	²		176.9		1.05			(0.05	)		0.00			1.00			(0.70	)		11.57

2019		31.02		0.07			1.01			1.08			0.00			0.00			0.00			32.10		3.48	²		115.5		1.06			(0.06	)		0.00			1.00			0.23			21.24

2018		24.04		(0.17	)		7.15			6.98			0.00			0.00			0.00			31.02		29.03	²		132.2		1.09			(0.08	)		0.00			1.01			(0.61	)		8.81

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		29.60		(0.10	)		3.42			3.32			0.00			0.00			0.00			32.92		11.22	^2,3		293.2		0.80	⁴		(0.04	)⁴		(0.01	)⁴		0.75	⁴		(0.67	)⁴		7.62	³

Year Ended September 30,

2022		56.82		(0.29	)		(25.21	)		(25.50	)		0.00			(1.72	)		(1.72	)		29.60		(46.35	)^2,5		281.8		0.76			(0.01	)		0.00	⁷		0.75			(0.68	)		37.41

2021		47.75		(0.34	)		9.59			9.25			0.00			(0.18	)		(0.18	)		56.82		19.44	²		609.8		0.75			(0.00	)⁶		0.00			0.75			(0.63	)		15.87

2020		32.80		(0.17	)		16.15			15.98			(0.04	)		(0.99	)		(1.03	)		47.75		49.93	²		350.5		0.78			(0.03	)		0.00			0.75			(0.45	)		11.57

2019		31.62		0.17			1.01			1.18			0.00			0.00			0.00			32.80		3.73	²		170.4		0.80			(0.05	)		0.00			0.75			0.56			21.24

2018		24.44		(0.10	)		7.28			7.18			0.00			0.00			0.00			31.62		29.38	²		152.2		0.82			(0.06	)		0.00			0.76			(0.36	)		8.81

R6 SHARES

Six Months Ended March 31,

2023		29.61		(0.10	)		3.41			3.31			0.00			0.00			0.00			32.92		11.18	^2.3		23.3		0.80	⁴		(0.03	)⁴		(0.02	)⁴		0.75	⁴		(0.67	)⁴		7.62	³

Year Ended September 30,

2022		56.84		(0.29	)		(25.22	)		(25.51	)		0.00			(1.72	)		(1.72	)		29.61		(46.36	)^2,5		21.1		0.76			(0.01	)		0.00	⁷		0.75			(0.68	)		37.41

2021		47.76		(0.34	)		9.60			9.26			0.00			(0.18	)		(0.18	)		56.84		19.45	²		39.6		0.75			(0.00	)⁶		0.00			0.75			(0.63	)		15.87

2020		32.81		(0.17	)		16.15			15.98			(0.04	)		(0.99	)		(1.03	)		47.76		49.92	²		33.1		0.78			(0.03	)		0.00			0.75			(0.45	)		11.57

2019		31.63		0.17			1.01			1.18			0.00			0.00			0.00			32.81		3.73	²		22.5		0.79			(0.04	)		0.00			0.75			0.54			21.24

2018		24.45		(0.11	)		7.29			7.18			0.00			0.00			0.00			31.63		29.37	²		21.4		0.80			(0.05	)		0.00			0.75			(0.37	)		8.81

¹	Based on average shares outstanding.

²	The total returns would have been lower had certain expenses not been reduced during the period shown.

³	Not Annualized.

⁴	Annualized.

⁵	The Adviser made a voluntary payment to the Fund in the amount of $2,806 to compensate the Fund for a loss incurred due to a valuation error. The impact of this payment increased the Fund’s total return by less than 0.01%.

⁶	Less than 0.01%.

⁷	Interest expense rounds to less than 0.01%.


52		See Notes to Financial Statements.


March 31, 2023		Baron Funds

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON DISCOVERY FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:														Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) on investments ($)			Total from investment operations ($)			Net investment income ($)			Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Less: Reimbursement of expenses by Adviser (%)			Ratio of net operating expenses to average nets assets (%)			Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		22.27		(0.11	)		2.64			2.53			0.00			0.00			0.00			24.80		11.36	³		153.1		1.33	⁴		0.00			1.33	⁴		(0.88	)⁴		17.04	³

Year Ended September 30,

2022		36.93		(0.32	)		(13.05	)		(13.37	)		0.00			(1.29	)		(1.29	)		22.27		(37.47	)		146.9		1.32			0.00			1.32			(1.11	)		40.64

2021		28.17		(0.43	)		10.25			9.82			0.00			(1.06	)		(1.06	)		36.93		35.61			270.3		1.31			0.00			1.31			(1.20	)		36.52

2020		19.41		(0.24	)		9.03			8.79			0.00			(0.03	)		(0.03	)		28.17		45.33			165.2		1.35			0.00			1.35			(1.09	)		43.36

2019		23.77		(0.22	)		(2.64	)		(2.86	)		0.00			(1.50	)		(1.50	)		19.41		(11.93	)²		122.7		1.36			(0.01	)		1.35			(1.10	)		55.94

2018		17.56		0.09			6.13			6.22			(0.01	)		0.00			(0.01	)		23.77		35.41	²		108.2		1.40	⁵		(0.05	)		1.35			0.45			72.25

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		22.80		(0.07	)		2.68			2.61			0.00			0.00			0.00			25.41		11.45	³		1,096.0		1.06	⁴		0.00			1.06	⁴		(0.61	)⁴		17.04	³

Year Ended September 30,

2022		37.68		(0.25	)		(13.34	)		(13.59	)		0.00			(1.29	)		(1.29	)		22.80		(37.31	)		955.6		1.06			0.00			1.06			(0.84	)		40.64

2021		28.65		(0.35	)		10.44			10.09			0.00			(1.06	)		(1.06	)		37.68		35.97			1,721.2		1.05			0.00			1.05			(0.94	)		36.52

2020		19.68		(0.19	)		9.19			9.00			0.00			(0.03	)		(0.03	)		28.65		45.77			759.2		1.08			0.00			1.08			(0.82	)		43.36

2019		24.03		(0.18	)		(2.67	)		(2.85	)		0.00			(1.50	)		(1.50	)		19.68		(11.75	)		409.4		1.10			0.00			1.10			(0.88	)		55.94

2018		17.74		0.01			6.32			6.33			(0.04	)		0.00			(0.04	)		24.03		35.74	²		280.2		1.12	⁵		(0.02	)		1.10			0.05			72.25

R6 SHARES

Six Months Ended March 31,

2023		22.80		(0.07	)		2.69			2.62			0.00			0.00			0.00			25.42		11.49	³		47.4		1.06	⁴		0.00			1.06	⁴		(0.61	)⁴		17.04	³

Year Ended September 30,

2022		37.68		(0.24	)		(13.35	)		(13.59	)		0.00			(1.29	)		(1.29	)		22.80		(37.30	)		41.3		1.06			0.00			1.06			(0.85	)		40.64

2021		28.65		(0.35	)		10.44			10.09			0.00			(1.06	)		(1.06	)		37.68		35.97			38.1		1.05			0.00			1.05			(0.94	)		36.52

2020		19.68		(0.19	)		9.19			9.00			0.00			(0.03	)		(0.03	)		28.65		45.77			15.3		1.08			0.00			1.08			(0.83	)		43.36

2019		24.03		(0.18	)		(2.67	)		(2.85	)		0.00			(1.50	)		(1.50	)		19.68		(11.75	)		6.8		1.09			0.00			1.09			(0.88	)		55.94

2018		17.74		0.03			6.30			6.33			(0.04	)		0.00			(0.04	)		24.03		35.75	²		5.6		1.10	⁵		(0.01	)		1.09			0.15			72.25

¹	Based on average shares outstanding.

²	The total returns would have been lower had certain expenses not been reduced during the period shown.

³	Not Annualized.

⁴	Annualized.

⁵	Interest expense rounds to less than 0.01%.


See Notes to Financial Statements.		53


Baron Funds		March 31, 2023

FINANCIAL HIGHLIGHTS (Unaudited) (Continued)

BARON DURABLE ADVANTAGE FUND

Selected data for a share outstanding throughout each period:



			Income (loss) from investment operations:									Less distributions to shareholders from:														Ratios/Supplemental Data:

	Net asset value, beginning of period ($)		Net investment income (loss) ($)¹			Net realized and unrealized gain (loss) ($)			Total from investment operations ($)			Net investment income ($)			Net realized gain on investments ($)			Total distributions ($)			Net asset value, end of period ($)		Total return (%)			Net assets (in millions), end of period ($)		Ratio of operating expenses to average net assets (%)			Less: Reimbursement of expenses by Adviser (%)			Ratio of net operating expenses to average net assets (%)			Net investment income (loss) (%)			Portfolio turnover rate (%)

RETAIL SHARES

Six Months Ended March 31,

2023		14.66		0.01			3.12			3.13			0.00			0.00			0.00			17.79		21.35	^4,5		9.2		1.63	⁶		(0.68	)⁶		0.95	⁶		0.09	⁶		2.54	⁵

Year Ended September 30,

2022		18.47		(0.04	)		(3.71	)		(3.75	)		0.00			(0.06	)		(0.06	)		14.66		(20.39	)⁴		7.6		1.49	²		(0.54	)		0.95			(0.23	)		42.09

2021		14.47		(0.05	)		4.06			4.01			(0.01	)		0.00			(0.01	)		18.47		27.70	⁴		9.8		1.91			(0.96	)		0.95			(0.29	)		10.58

2020		11.77		(0.00	)³		2.72			2.72			(0.02	)		0.00			(0.02	)		14.47		23.10	⁴		4.0		2.80			(1.85	)		0.95			(0.01	)		16.55

2019		10.74		0.03			1.03			1.06			(0.03	)		0.00			(0.03	)		11.77		9.97	⁴		1.9		6.22			(5.27	)		0.95			0.25			13.23

2018⁷		10.00		0.01			0.73			0.74			0.00			0.00			0.00			10.74		7.40	^4,5		0.6		7.45	⁶		(6.50	)⁶		0.95	⁶		0.19	⁶		5.85	⁵

INSTITUTIONAL SHARES

Six Months Ended March 31,

2023		14.82		0.03			3.16			3.19			0.00			0.00			0.00			18.01		21.53	^4,5		47.9		1.24	⁶		(0.54	)⁶		0.70	⁶		0.34	⁶		2.54	⁵

Year Ended September 30,

2022		18.63		0.01			(3.76	)		(3.75	)		0.00			(0.06	)		(0.06	)		14.82		(20.21	)⁴		23.6		1.10	²		(0.40	)		0.70			0.03			42.09

2021		14.56		(0.01	)		4.09			4.08			(0.01	)		0.00			(0.01	)		18.63		28.01	⁴		27.1		1.48			(0.78	)		0.70			(0.05	)		10.58

2020		11.82		0.03			2.73			2.76			(0.02	)		0.00			(0.02	)		14.56		23.34	⁴		8.0		2.40			(1.70	)		0.70			0.22			16.55

2019		10.76		0.06			1.03			1.09			(0.03	)		0.00			(0.03	)		11.82		10.23	⁴		4.7		4.91			(4.21	)		0.70			0.52			13.23

2018⁷		10.00		0.04			0.72			0.76			0.00			0.00			0.00			10.76		7.60	^4,5		3.0		5.71	⁶		(5.01	)⁶		0.70	⁶		0.46	⁶		5.85	⁵

R6 SHARES

Six Months Ended March 31,

2023		14.82		0.03			3.16			3.19			0.00			0.00			0.00			18.01		21.52	^4,5		4.2		1.20	⁶		(0.50	)⁶		0.70	⁶		0.33	⁶		2.54	⁵

Year Ended September 30,

2022		18.63		0.00	³		(3.75	)		(3.75	)		0.00			(0.06	)		(0.06	)		14.82		(20.21	)⁴		3.5		1.07	²		(0.37	)		0.70			0.02			42.09

2021		14.56		(0.01	)		4.09			4.08			(0.01	)		0.00			(0.01	)		18.63		28.01	⁴		4.3		1.47			(0.77	)		0.70			(0.04	)		10.58

2020		11.82		0.03			2.73			2.76			(0.02	)		0.00			(0.02	)		14.56		23.34	⁴		2.5		1.93			(1.23	)		0.70			0.23			16.55

2019		10.75		0.06			1.04			1.10			(0.03	)		0.00			(0.03	)		11.82		10.34	⁴		0.5		4.65			(3.95	)		0.70			0.53			13.23

2018⁷		10.00		0.04			0.71			0.75			0.00			0.00			0.00			10.75		7.50	^4,5		0.4		5.24	⁶		(4.54	)⁶		0.70	⁶		0.46	⁶		5.85	⁵

¹	Based on average shares outstanding.

²	Interest expense rounds to less than 0.01%.

³	Less than $0.01 per share.

⁴	The total returns would have been lower had certain expenses not been reduced during the period shown.

⁵	Not Annualized.

⁶	Annualized.

⁷	For the period January 2, 2018 (commencement of operations) to September 30, 2018.


54		See Notes to Financial Statements.


March 31, 2023		Baron Funds

FUND EXPENSES (Unaudited)

As a shareholder of the Funds, you incur ongoing expenses. Ongoing expenses include advisory fees, distribution and service (12b-1) fees and other Fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The information in the following table is based on an investment of $1,000 invested on October 1, 2022 and held for the six months ended March 31, 2023.

ACTUAL EXPENSES

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading titled “Expenses Paid During the Period”.

BASED ON ACTUAL TOTAL RETURN FOR THE SIX MONTHS ENDED MARCH 31, 2023¹



	Actual Total Return			Beginning Account Value October 1, 2022		Ending Account Value March 31, 2023			Annualized Expense Ratio			Expenses Paid During the Period²
Baron Asset Fund — Retail Shares		18.07	%	$	1,000.00	$	1,180.70			1.30	%	$	7.07
Baron Asset Fund — Institutional Shares		18.21	%	$	1,000.00	$	1,182.10			1.05	%	$	5.71
Baron Asset Fund — R6 Shares		18.19	%	$	1,000.00	$	1,181.90			1.05	%	$	5.71
Baron Growth Fund — Retail Shares		20.59	%	$	1,000.00	$	1,205.90			1.32	%⁴	$	7.26
Baron Growth Fund — Institutional Shares		20.75	%	$	1,000.00	$	1,207.50			1.06	%⁴	$	5.83
Baron Growth Fund — R6 Shares		20.75	%	$	1,000.00	$	1,207.50			1.06	%⁴	$	5.83
Baron Small Cap Fund — Retail Shares		13.95	%	$	1,000.00	$	1,139.50			1.31	%	$	6.99
Baron Small Cap Fund — Institutional Shares		14.09	%	$	1,000.00	$	1,140.90			1.05	%	$	5.60
Baron Small Cap Fund — R6 Shares		14.09	%	$	1,000.00	$	1,140.90			1.06	%	$	5.66
Baron Opportunity Fund — Retail Shares		12.46	%	$	1,000.00	$	1,124.60			1.33	%	$	7.04
Baron Opportunity Fund — Institutional Shares		12.61	%	$	1,000.00	$	1,126.10			1.07	%	$	5.67
Baron Opportunity Fund — R6 Shares		12.60	%	$	1,000.00	$	1,126.00			1.07	%	$	5.67
Baron Fifth Avenue Growth Fund — Retail Shares		11.07	%	$	1,000.00	$	1,110.70	³		1.01	%^5,6	$	5.31
Baron Fifth Avenue Growth Fund — Institutional Shares		11.22	%	$	1,000.00	$	1,112,20	³		0.76	%^5,6	$	4.00
Baron Fifth Avenue Growth Fund — R6 Shares		11.18	%	$	1,000.00	$	1,111.80	³		0.77	%^5,6	$	4.05
Baron Discovery Fund — Retail Shares		11.36	%	$	1,000.00	$	1,113.60			1.33	%	$	7.01
Baron Discovery Fund — Institutional Shares		11.45	%	$	1,000.00	$	1,114.50			1.06	%	$	5.59
Baron Discovery Fund — R6 Shares		11.49	%	$	1,000.00	$	1,114.90			1.06	%	$	5.59
Baron Durable Advantage Fund — Retail Shares		21.35	%	$	1,000.00	$	1,213.50	³		0.95	%⁵	$	5.24
Baron Durable Advantage Fund — Institutional Shares		21.53	%	$	1,000.00	$	1,215.30	³		0.70	%⁵	$	3.87
Baron Durable Advantage Fund — R6 Shares		21.52	%	$	1,000.00	$	1,215.20	³		0.70	%⁵	$	3.87

¹	Assumes reinvestment of all dividends and capital gain distributions, if any.

²	Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.

³	Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived.

⁴	Annualized expense ratio for Baron Growth Fund for the six months ended March 31, 2023, includes 1.29%, 1.04%, and 1.04% for net operating expenses, and 0.03%, 0.02%, and 0.02% for interest expense for Retail, Institutional, and R6 Shares, respectively.

⁵	Annualized expense ratios are adjusted to reflect fee waiver.

⁶	Annualized expense ratio for Baron Fifth Avenue Growth Fund for the six months ended March 31, 2023, includes 1.00%, 0.75% and 0.75% for net operating expenses, and 0.01%, 0.01% and 0.02% for interest expense for Retail, Institutional and R6 Shares, respectively.


Baron Funds		March 31, 2023

FUND EXPENSES (Unaudited) (Continued)

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account values and expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example relating to the Funds with the 5% hypothetical examples that appear in the shareholder reports of other funds.

BASED ON HYPOTHETICAL TOTAL RETURN FOR THE SIX MONTHS ENDED MARCH 31, 2023



	Hypothetical Annualized Total Return			Beginning Account Value October 1, 2022		Ending Account Value March 31, 2023			Annualized Expense Ratio			Expenses Paid During the Period²
Baron Asset Fund — Retail Shares		5.00	%	$	1,000.00	$	1,018.45			1.30	%	$	6.54
Baron Asset Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,019.70			1.05	%	$	5.29
Baron Asset Fund — R6 Shares		5.00	%	$	1,000.00	$	1,019.70			1.05	%	$	5.29
Baron Growth Fund — Retail Shares		5.00	%	$	1,000.00	$	1,018.35			1.32	%⁴	$	6.64
Baron Growth Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,019.65			1.06	%⁴	$	5.34
Baron Growth Fund — R6 Shares		5.00	%	$	1,000.00	$	1,019.65			1.06	%⁴	$	5.34
Baron Small Cap Fund — Retail Shares		5.00	%	$	1,000.00	$	1,018.40			1.31	%	$	6.59
Baron Small Cap Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,019.70			1.05	%	$	5.29
Baron Small Cap Fund — R6 Shares		5.00	%	$	1,000.00	$	1,019.65			1.06	%	$	5.34
Baron Opportunity Fund — Retail Shares		5.00	%	$	1,000.00	$	1,018.30			1.33	%	$	6.69
Baron Opportunity Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,019.60			1.07	%	$	5.39
Baron Opportunity Fund — R6 Shares		5.00	%	$	1,000.00	$	1,019.60			1.07	%	$	5.39
Baron Fifth Avenue Growth Fund — Retail Shares		5.00	%	$	1,000.00	$	1,019.90	³		1.01	%^5,6	$	5.09
Baron Fifth Avenue Growth Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,021.14	³		0.76	%^5,6	$	3.83
Baron Fifth Avenue Growth Fund — R6 Shares		5.00	%	$	1,000.00	$	1,021.09	³		0.77	%^5,6	$	3.83
Baron Discovery Fund — Retail Shares		5.00	%	$	1,000.00	$	1,018.30			1.33	%	$	6.69
Baron Discovery Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,019.65			1.06	%	$	5.34
Baron Discovery Fund — R6 Shares		5.00	%	$	1,000.00	$	1,019.65			1.06	%	$	5.34
Baron Durable Advantage Fund — Retail Shares		5.00	%	$	1,000.00	$	1,020.19	³		0.95	%⁵	$	4.78
Baron Durable Advantage Fund — Institutional Shares		5.00	%	$	1,000.00	$	1,021.44	³		0.70	%⁵	$	3.53
Baron Durable Advantage Fund — R6 Shares		5.00	%	$	1,000.00	$	1,021.44	³		0.70	%⁵	$	3.53

¹	Assumes reinvestment of all dividends and capital gain distributions, if any.

²	Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.

³	Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived.

⁴	Annualized expense ratio for Baron Growth Fund for the six months ended March 31, 2023, includes 1.29%, 1.04%, and 1.04% for net operating expenses, and 0.03%, 0.02%, and 0.02% for interest expense for Retail, Institutional, and R6 Shares, respectively.

⁵	Annualized expense ratios are adjusted to reflect fee waiver.

⁶	Annualized expense ratio for Baron Fifth Avenue Growth Fund for the six months ended March 31, 2023, includes 1.00%, 0.75% and 0.75% for net operating expenses, and 0.01%, 0.01% and 0.02% for interest expense for Retail, Institutional and R6 Shares, respectively.

Privacy Notice

The Funds collect nonpublic personal information about you from the following sources:

∎

Information we receive from you on applications or other forms;

∎

Information about your transactions with us, our Adviser or others; and

∎

Information we receive from third parties, such as credit reporting agencies.

“Nonpublic personal information” is private information about you that we obtain in connection with providing a financial product or service to you.

We may share your name and address with other Baron Funds and the Adviser and its affiliates for the purpose of sending you information about our products that we believe may be of interest to you and informing you of our upcoming Baron Investment Conference and for sending required information.

We do not disclose any nonpublic personal information about our customers to anyone, except as permitted or required by law. Examples of permitted disclosures under the law include sharing with companies that work for us to provide you services, such as the Transfer Agent or mailing house. All such companies that act on our behalf are contractually obligated to keep the information that we provide to them confidential and to use the information only to provide the services that we have asked them to perform for you and us.

We restrict access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.

This privacy notice is also available at all times on the Baron Funds^® website, www.BaronFunds.com or by calling 1-800-99BARON.

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767 Fifth Avenue, 49^th Fl.

New York, NY 10153

1.800.99.BARON

212-583-2000

www.BaronFunds.com

LOGO

MARCH 31

SEMITRUST 3/31/2023

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included herein under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. 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 (the “1940 Act”)) 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 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.


(a)(1)		Not applicable.
(a)(2)		Certification of each of the principal executive officers and principal financial officers of the Registrant as required by Rule 30a-2(a) under the 1940 Act.
(b)		Certification of each of the principal executive officers and principal financial officers of the Registrant as required by Rule 30a-2(b) under the 1940 Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 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: May 25, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 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

Date: May 25, 2023

By:		/s/ Peggy Wong
		Peggy Wong
		Treasurer and Chief Financial Officer

Date: May 25, 2023