Ron Baron (Trades, Portfolio) founded Baron Capital in 1982 to make his unique investment style available to institutional and individual investors. The fund looks beyond short-term volatility and market unpredictability and focuses on a company’s opportunities over the next five years.
During the third quarter 18 stocks got new positions in Baron's portfolio; below are his new buys with impacts of greater than 0.02% on his portfolio.
Baron acquired a 526,850-share stake in Royal Caribbean Cruises Ltd. (RCL, Financial), which operates in the cruise vacation industry. The company owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France and a 50% joint venture interest in TUI Cruises. Baron Capital paid an average price of $87.75 per share. The deal had a 0.21% impact on Baron’s portfolio.
Royal Caribbean has a market cap of $20.78 billion and an enterprise value of $29.12 billion. It has a P/E of 36.9, a forward P/E of 15.3, a P/B of 2.5 and a P/S of 2.5. GuruFocus has given Royal Caribbean a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
In this quarter Stanley Druckenmiller and Jim Simons (Trades, Portfolio) bought 231,500 and 3,615 shares of Royal Caribbean.
Baron acquired a 2,073,449-share stake in ConforMIS Inc. (CFMS), a medical technology company that uses its proprietary iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants that are individually sized and shaped. Baron Capital paid an average price of $20.14 per share. The deal had a 0.17% impact on Baron’s portfolio.
ConforMIS has a market cap of $836.23 billion and an enterprise value of $808.95 billion. It has a P/B of 12.4 and a P/S of 9.9. GuruFocus has given ConforMIS a Financial Strength rating of 4/10 and a Profitability and Growth rating of 2/10.
In this quarter ConforMIS was bought for the first time by RS Investment Management (Trades, Portfolio); the fund bought 1,388,980 shares and Chuck Royce (Trades, Portfolio) bought 72,600 shares of ConforMIS.
Baron acquired a 2,073,449-share stake in TerraForm Global Inc. (GLBL), a diversified, dividend growth-oriented company formed to own and operate contracted clean power generation assets. Baron Capital paid an average price of $9.69 per share. The deal had a 0.14% impact on Baron’s portfolio.
TerraForm has a market cap of $941.9 billion and an enterprise value of $1.32 billion. It has a forward P/E of 22.4, a P/B of 12.89 and a P/S of 7.2. GuruFocus has given TerraForm a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10.
In this quarter TerraForm got new position in six investors' portfolios. Leon Cooperman (Trades, Portfolio) bought 6,013,155 shares, Larry Robbins (Trades, Portfolio) David Einhorn (Trades, Portfolio) bought 1,900,000 shares, Steven Cohen (Trades, Portfolio) bought 467,900 shares, James Barrow (Trades, Portfolio) bought 50,230 shares, and Paul Tudor Jones bought 46,044 shares of TerraForm.
Baron acquired a 200,000-share stake in Juno Therapeutics Inc. (JUNO) a biopharmaceutical company focused on revolutionizing medicine by re-engaging the body's immune system to treat cancer. Baron Capital paid an average price of $43.86 per share. The deal had a 0.04% impact on Baron’s portfolio.
Juno Therapeutics has a market cap of $5.34 billion and an enterprise value of $4.19 billion. It has a P/B of 4.7 and a P/S of 312. GuruFocus has given Juno Therapeutics a Financial Strength rating of 7/10 and a Profitability and Growth rating of 2/10.
In this quarter just Ron Baron (Trades, Portfolio) bought shares of Juno Therapeutics.Ă‚ RS Investment Management (Trades, Portfolio) increased its stake by 48.76% and Paul Tudor Jones (Trades, Portfolio) and John Burbank (Trades, Portfolio) sold out their stakes of Juno Therapeutics.
Baron acquired180,000-share stake in Copa Holdings SAÂ (CPA) a Latin American provider of airline passenger and cargo service through its two main operating subsidiaries, Copa Airlines and Copa Colombia. Baron Capital paid an average price of $63.06 per share. The deal had a 0.03% impact on Baron’s portfolio.
Copa Holdings has a market cap of $2,37 billion and an enterprise value of $3.02 billion. It has a P/E of 22.7, a forward P/E of 10.3, a P/B of 1.1 and a P/S of 1.4. GuruFocus has given Copa Holdings a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Other than Baron’s portfolio, Copa Holdings got new position in the portfolio of Paul Tudor Jones (Trades, Portfolio) in which he bought 6,700 shares of CPA.
Baron acquired a 133,138-share stake in Aspen Technology Inc. (AZPN) a provider of mission-critical process optimization software solutions, which are designed to manage and optimize plant and process design, operational performance, and supply chain planning. Baron Capital paid an average price of $41.25 per share. The deal had a 0.02% impact on Baron’s portfolio.
Aspen Technology has a market cap of $3.55 billion and an enterprise value of $3.37 billion. It has a P/E of 29.2, a forward P/E of 26.3 and a P/S of 8.1. GuruFocus has given Aspen Technology a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
During the third quarter Aspen Technology also got new position in the portfolio of Paul Tudor Jones (Trades, Portfolio) in which he bought 8,600 shares of Aspen Technology.
Baron acquired a 278,061-share stake in Blue Buffalo Pet Products Inc. (BUFF) a pet food company in the United States, selling dog and cat food made with whole meats, fruits, vegetables and other natural ingredients. Baron Capital paid an average price of $24.56 per share. The deal had a 0.02% impact on Baron’s portfolio.
Blue Buffalo has a market cap of $3.35 billion and an enterprise value of $3.65 billion. It has a P/E of 32.9, a forward P/E of 24.9 and a P/S of 3.7. GuruFocus has given Blue Buffalo a Financial Strength rating of 7/10 and a Profitability and Growth rating of 4/10.
In this quarter other nine investors bought shares of Blue Buffalo. RS Investment Management (Trades, Portfolio) bought 872,070 shares, Joel Greenblatt (Trades, Portfolio) bought 708,152 shares, PRIMECAP Management (Trades, Portfolio) bought 699,100 shares, Jana Partners (Trades, Portfolio) bought 600,000 shares, Leon Cooperman (Trades, Portfolio) bought 500,000 shares, Jim Simons (Trades, Portfolio) bought 319,842 shares, Louis Moore Bacon (Trades, Portfolio) bought 225,000 shares, Caxton Associates (Trades, Portfolio) bought 162,400 shares and Paul Tudor Jones (Trades, Portfolio) bought 14,900 shares of Blue Buffalo.
Baron acquired a 50.017-share stake in MarketAxess Holdings Inc. (MKTX). The company and its subsidiaries operate an electronic trading platform for corporate bonds and certain other types of fixed-income instruments through which the company’s institutional investor clients can access the liquidity provided by its broker-dealer clients. Baron Capital paid an average price of $96.67 per share. The deal had a 0.02% impact on Baron’s portfolio.
MarketAxess has a market cap of $3.98 billion and an enterprise value of $3.72 billion. It has a P/E of 43.3, a forward P/E of 39.7, a P/B of 10.7 and a P/S of 13.5. GuruFocus has given MarketAxess a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10.
During the third quarter, three other investors traded MarketAxess, in which RS Investment Management (Trades, Portfolio) increased its stake by 53.96%, Jim Simons (Trades, Portfolio) increased his stake by 7.71% and John Keeley (Trades, Portfolio) sold out his stake in MarketAxess.
Baron acquired a 67.089 share stake in ServiceNow Inc. (NOW). The company along with its subsidiaries is a provider of Cloud-based services to automate enterprise IT operations. The services include a suite of applications built on a proprietary platform that automates workflow and integrates related business processes. Baron Capital paid an average price of $74.71 per share. The deal had a 0.02% impact on Baron’s portfolio.
ServiceNow has a market cap of $13.7 billion and an enterprise value of $13.4 billion. It has a forward P/E of 147.1, a P/B of 26.4 and a P/S of 14.4. GuruFocus has given ServiceNow a Financial Strength rating of 9/10 and a Profitability and Growth rating of 3/10.
In this quarter three other investors traded ServiceNow, in which Pioneer Investments (Trades, Portfolio) reduced its stake by 15.78%, Paul Tudor Jones (Trades, Portfolio) increased his stake by 210.14% and Ken Fisher (Trades, Portfolio) increased his stake by 10.50 sold out his stake in ServiceNow.
