Fund Evaluator:
Baron Real Estate Retail (BREFX)
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Best Performing in Real Estate Over the Last Year
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Fund Details
Baron Real Estate Retail Overview
Baron Real Estate Retail (BREFX) is an actively managed Sector Equity Real Estate fund. Baron Capital Group, Inc. launched the fund in 2009.
The investment seeks capital appreciation. The fund normally invests 80% of its net assets for the long term in equity securities in the form of common stock of U.S. and non-U.S. real estate and real estate-related companies of any market capitalization, and in companies which, in the opinion of the Adviser, own significant real estate assets at the time of investment ("real estate companies"). It will invest more than 25% of its net assets in the real estate industry.
About Baron Real Estate Retail (BREFX)
There are 1 members of the management team with an average tenure of 16.51 years: Jeffrey Kolitch (2009). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and MSCI USA IMI Extended Real Estate NR USD index with a weighting of 100%. Baron Real Estate Retail has 41 securities in its portfolio. The top 10 holdings constitute 42.7% 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 Real Estate Retail is part of the Equity global asset class and is within the Sector Equity fund group. Baron Real Estate Retail has 7.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 86.7%. There is 7.5% 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 Real Estate Retail has 5.9% of the portfolio in cash.
Assets Under Management
The fund has $366 million in total assets, which is below the $657 million average for the Real Estate 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.
BREFX 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 Real Estate Retail expense ratio is high compared to funds in the Real Estate category. Baron Real Estate Retail has an expense ratio of 1.32%, which is 8% 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 Real Estate Retail has a portfolio turnover rate of 70%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 80% for the Real Estate category.
Recently, in the month of June 2026, Baron Real Estate Retail returned 5.4%, which earned it a grade of A, as the Real Estate category had an average return of 2.0%. 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 Real Estate Retail has a trailing yield of 0.09%, which is below the 2.17% category average. The fund normally distributes its income quarterly and its capital gains 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 Real Estate Retail Grades
Year to date, the fund has returned 5.7%, 8.4 percentage points worse than the category, which translates into a grade of F. The fund has returned 14.9% over the past year (grade of B), 10.6% over the past three years (grade of B) and 3.4% per year over the past five years (grade of C) and 11.5% per year over the past 10 years (grade of A).
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BREFX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BREFX Return (NAV) | 5.4% | 11.8% | 14.9% | 10.6% | 3.4% | 11.5% |
| BREFX Grade | A | B | B | B | C | A |
| +/- Category | 3.4% | 1.2% | 0.0% | 0.8% | -0.2% | 6.0% |
| Real Estate Avg | 2.0% | 10.7% | 14.9% | 9.8% | 3.6% | 5.5% |
| BREFX Tax Cost Ratio | na | na | 0.8% | 0.3% | 0.8% | 1.2% |
BREFX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BREFX Return (NAV) | 5.7% | 4.9% | 12.2% | 24.7% | -28.6% | 24.0% | 43.9% | 44.1% | -22.2% | 31.0% | -2.0% |
| BREFX Grade | F | A | A | A | F | F | A | A | F | A | F |
| +/- Category | -8.4% | 3.6% | 5.7% | 12.4% | -2.5% | -17.8% | 47.6% | 15.5% | -16.2% | 24.4% | -8.1% |
| Real Estate Avg | 14.2% | 1.4% | 6.5% | 12.3% | -26.1% | 41.8% | -3.8% | 28.6% | -6.0% | 6.6% | 6.1% |
| Risk Measures | |
| Standard Deviation: | 19.3% |
| Total Risk Index: | 1.59 - High |
| Category Risk Index: | 1.19 - High |
| Category Risk Grade: | F (102% Rank) |
| Beta: | 1.15 |
| R-Squared: | 57% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.1% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2294 Mil |
| Fund Total Assets: | $ 367 Mil |
| Share Class Type: | Adv |
| Portfolio Turnover: | 70% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 16.5 years | |||
| Average Tenure: 16.5 years | |||
| Managers (Year): Kolitch Jeffrey (2009) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 41 |
| % in Top 10 Holdings: | 42.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 7.5% |
Portfolio Allocation |
|
| Domestic Stock: | 86.7% |
| Foreign Stock: | 7.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 5.9% |
Purchase Information
| Fund Family: | Baron Capital Group, Inc. |
| Phone Number: | 800-992-2766 |
| Website: | www.baronfunds.com |
| Status: | Open |
| Inception Date: | December 31, 2009 |
| 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 (%): | 1.32% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.23% |
| Share Class: | Baron Real Estate Institutional |
| Min. Subsequent Purchase: | $ 10 |
| Min. Subsequent IRA Purchase: | $ 0 |
