Fund Evaluator:
Baron Discovery Retail (BDFFX)
Follow This Fund
Best Performing in Small Growth Over the Last Year
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Fund Details
Baron Discovery Retail Overview
Baron Discovery Retail (BDFFX) is an actively managed U.S. Equity Small Growth fund. Baron Capital Group, Inc. launched the fund in 2013.
The investment seeks capital appreciation through investments primarily in securities of small-sized growth companies. The fund is a diversified fund that invests for the long term primarily in equity securities in the form of common stock of U.S. small-sized growth companies. The Adviser seeks to invest in businesses the adviser believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and an attractive valuation.
About Baron Discovery Retail (BDFFX)
There are 2 members of the management team with an average tenure of 12.93 years: Laird Bieger (2013), Randolph Gwirtzman (2013). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2000 Growth TR USD index with a weighting of 100%. Baron Discovery Retail has 61 securities in its portfolio. The top 10 holdings constitute 25.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Baron Discovery Retail is part of the Equity global asset class and is within the U.S. Equity fund group. Baron Discovery Retail has 4.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 92.4%. There is 4.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Baron Discovery Retail has 3.2% of the portfolio in cash.
Assets Under Management
The fund has $118 million in total assets, which is below the $424 million average for the Small Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BDFFX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Baron Discovery Retail expense ratio is high compared to funds in the Small Growth category. Baron Discovery Retail has an expense ratio of 1.33%, which is 13% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Baron Discovery Retail has a portfolio turnover rate of 41%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 78% for the Small Growth category.
Recently, in the month of August 2026, Baron Discovery Retail returned 5.1%, which earned it a grade of A, as the Small Growth category had an average return of 0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Baron Discovery Retail has a trailing yield of 0.00%, which is below the 0.05% category average. The fund normally distributes its income annually and its capital gains semi-annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Baron Discovery Retail Grades
Year to date, the fund has returned 6.1%, 8.4 percentage points worse than the category, which translates into a grade of F. The fund has returned 6.8% over the past year (grade of F), 12.6% over the past three years (grade of D) and -0.1% per year over the past five years (grade of D) and 12.9% per year over the past 10 years (grade of B).
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BDFFX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BDFFX Return (NAV) | 5.1% | 4.3% | 6.8% | 12.6% | -0.1% | 12.9% |
| BDFFX Grade | A | A | F | D | D | B |
| +/- Category | 4.3% | 4.2% | -11.7% | -1.4% | -3.1% | 1.8% |
| Small Growth Avg | 0.8% | 0.1% | 18.5% | 14.0% | 3.0% | 11.1% |
| BDFFX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.2% | 0.4% |
BDFFX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BDFFX Return (NAV) | 6.1% | 10.7% | 15.9% | 22.3% | -35.3% | 4.6% | 65.7% | 26.5% | 0.4% | 35.5% | 21.4% |
| BDFFX Grade | F | B | B | A | F | D | A | D | B | A | A |
| +/- Category | -8.4% | 2.7% | 0.4% | 5.5% | -7.4% | -5.9% | 23.9% | -3.4% | 4.6% | 11.4% | 11.2% |
| Small Growth Avg | 14.4% | 8.0% | 15.5% | 16.7% | -27.9% | 10.5% | 41.8% | 29.9% | -4.1% | 24.1% | 10.2% |
| Risk Measures | |
| Standard Deviation: | 21.5% |
| Total Risk Index: | 1.77 - High |
| Category Risk Index: | 1.05 - Above Average |
| Category Risk Grade: | D (71% Rank) |
| Beta: | 1.37 |
| R-Squared: | 68% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Semi-Annually |
| Total Assets: | $1762 Mil |
| Fund Total Assets: | $ 118 Mil |
| Share Class Type: | Adv |
| Portfolio Turnover: | 41% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 12.9 years | |||
| Average Tenure: 12.9 years | |||
| Managers (Year): Bieger Laird (2013), Gwirtzman Randolph (2013) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 61 |
| % in Top 10 Holdings: | 25.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 4.5% |
Portfolio Allocation |
|
| Domestic Stock: | 92.4% |
| Foreign Stock: | 4.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 3.2% |
Purchase Information
| Fund Family: | Baron Capital Group, Inc. |
| Phone Number: | 800-992-2766 |
| Website: | https://www.baroncapitalgroup.com |
| Status: | Open |
| Inception Date: | September 30, 2013 |
| Min. Initial Purchase: | $2,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 1.33% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.17% |
| Share Class: | Baron Discovery Institutional |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
