I.Executive Summary
Baron Partners Fund is a concentrated, non-diversified U.S. growth mutual fund run by Baron Capital. This note covers the Retail share class (BPTRX). The fund holds about two dozen companies, borrows to invest more than 100% of its assets, and is dominated by two Elon Musk-led companies: SpaceX (35.6% of net assets) and Tesla (14.8%) as of 18 September 2026. Together they are just over half the fund.
Long-term results have been outstanding: 25.2% a year over ten years to 30 June 2026, against 13.0% for the Russell Midcap Growth benchmark. The path has been rough, including a 42.6% loss in 2022. Most recent gains came from SpaceX, which the fund held as a private company before its June 2026 listing.
Owning BPTRX today is mainly a leveraged, fee-bearing position in SpaceX and Tesla, with a portfolio of high-quality compounders attached. The past record is exceptional; the forward arithmetic depends on two very richly valued companies.
Our adapted, look-through projection applies the Pathos forward-P/E method to the fund's listed holdings (72.4% of net assets, look-through P/E 24.2×), grows their earnings at 14% a year after the consensus years (bear and bull ±3 points, exit multiples ±15%), holds SpaceX and Moderna flat, and deducts the 1.91% expense ratio. That gives Year-5 NAVs of $298.84 (bear), $362.66 (base) and $434.73 (bull), against today's $264.56: about +6.5% a year in the base case (+2.5% to +10.4%). Discounted at 10%, the base case is worth $225.18, −15% versus NAV. The single largest swing factor, SpaceX, is not valued by the method at all. *All values are Pathos's illustrative estimates, not forecasts or recommendations.
II.Fund Overview
| Item | Detail | Source |
|---|---|---|
| Fund / share class | Baron Partners Fund, Retail shares (BPTRX); CUSIP 06828M108 | Baron Capital |
| Adviser | BAMCO, Inc. (Baron Capital) | Baron holdings list |
| Category / benchmark | U.S. mid-cap growth; Russell Midcap Growth Index | Baron Capital |
| Inception | 31 Jan 1992 (performance inception); mutual fund since 30 Apr 2003 | Baron Capital; FT |
| Net assets | $18.01B all classes (30 Jun 2026); $16.53B (31 Aug 2026) | Baron; FT / StockAnalysis |
| Retail class assets | $5.03B | FT / StockAnalysis |
| Holdings | 24 issuers (18 Sep 2026); active share 97.5% (30 Jun 2026) | Baron Capital |
| Turnover | 2.47% (3-year average); 5% (latest, Schwab) | Baron; Schwab |
| Minimum investment | $2,000 | FT / Schwab |
| Structure | Non-diversified; may borrow to invest (leverage) | Baron holdings-list risk disclosure |
The strategy is to buy a small number of growth companies, often founder-led, and hold them for many years. Low turnover reflects that patience. The fund's distinctive features, concentration and leverage, explain both its long-term outperformance and its severe drawdowns. Morningstar's analyst commentary of 27 April 2026 called it an "increasingly unorthodox and extreme portfolio" that "isn't a recommended choice for most investors."
III.NAV, Fees & Leverage
NAV as of 30 Sep 2026 · Expense ratio as of the 30 Apr 2026 prospectus year · Leverage as of 30 Jun and 18 Sep 2026| Metric | Value | Basis |
|---|---|---|
| NAV per share (Retail) | $264.56 | 30 Sep 2026; daily change +$0.30 (Baron Capital) |
| Month / quarter / year to date | −4.05% / −4.41% / +5.39% | To 30 Sep 2026 (Baron Capital) |
| 52-week NAV range | $201.56 – $297.78 | StockAnalysis |
| Latest distribution | $1.8881 long-term capital gain | Ex-date 22 Sep 2026; reinvestment NAV $271.58 |
| Net expense ratio | 1.91% | Gross also 1.91%; category average 0.89% (FT / StockAnalysis) |
| Leverage | 6.6% of net assets | 30 Jun 2026 (Baron fact sheet); 106.6% of net assets invested |
| Equity exposure | 109.2% → 109.4% | 31 Aug and 18 Sep 2026; liabilities less cash −9.2% and −9.4% |
Fees. At 1.91% a year, the Retail class costs more than twice the category average. Over five years that compounds to about 9% of NAV (Pathos calculation), a direct drag that our projection deducts.
Leverage. The fund borrows so that it holds about 106–109% of its net assets in stocks. That magnifies gains and losses: in 2022 the fund fell 42.6% against 26.7% for its benchmark. Borrowing also costs interest; we have not been able to separate that cost from the reported expense ratio, so we flag it rather than model it.
IV.Performance vs. Benchmark
| Annualised, to 30 Jun 2026 | QTD | YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since 1992 |
|---|---|---|---|---|---|---|---|
| BPTRX (Retail) | 16.54% | 10.25% | 48.38% | 22.35% | 13.55% | 25.22% | 15.87% |
| Russell Midcap Growth | 14.55% | 7.27% | 6.17% | 15.61% | 6.03% | 13.04% | 10.29% |
| Russell 3000 | 15.44% | 10.88% | 22.82% | 20.36% | 12.31% | 15.06% | 10.85% |
| Calendar year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Baron Partners Fund | 149.18%† | 31.73%† | −42.56% | 43.47%† | 32.74% | 24.55% |
| Russell Midcap Growth | 35.59% | 12.73% | −26.72% | 25.87% | 22.10% | 8.66% |
The fund beat its benchmark by about 12 points a year over ten years, and over five years its upside capture was 125% and downside capture 102% (Baron, versus the Russell Midcap Growth). Five-year standard deviation was 33.3%, roughly double that of a typical equity index fund. Recent performance is dominated by SpaceX: in the second quarter of 2026 it contributed 12.99 percentage points of return at an average weight of 31.0%, with Tesla adding 2.99 points.
V.Holdings & Concentration
| Holding | % of net assets | Price, 30 Sep | P/E, current FY | P/E, next FY | Analysts' 5-yr EPS growth |
|---|---|---|---|---|---|
| Space Exploration Technologies (SpaceX) (SPCX) | 35.6% | $150.86 | n/m | 79.8× | – |
| Tesla (TSLA) | 14.8% | $354.81 | 208.8× | 155.6× | 24.3% |
| Charles Schwab (SCHW) | 5.0% | $97.74 | 15.1× | 12.4× | 23.7% |
| Shopify (SHOP) | 4.9% | $148.30 | 77.5× | 59.8× | 33.4% |
| MSCI (MSCI) | 4.6% | $538.66 | 27.3× | 24.0× | 13.9% |
| Spotify Technology (SPOT) | 4.0% | $487.38 | 35.1× | 28.0× | 22.5% |
| Hyatt Hotels (H) | 3.9% | $158.56 | 44.4× | 32.6× | 39.2% |
| FactSet Research Systems (FDS) | 3.8% | $269.95 | 13.8× | 12.4× | 10.0% |
| Arch Capital Group (ACGL) | 3.8% | $92.36 | 9.8× | 9.4× | 2.3% |
| Gartner (IT) | 3.4% | $186.54 | 12.9× | 11.3× | 12.7% |
| Guidewire Software (GWRE) | 3.0% | $142.58 | 34.0× | 26.7× | 25.9% |
| IDEXX Laboratories (IDXX) | 2.6% | $522.19 | 35.4× | 31.1× | 13.4% |
| Morningstar (MORN) | 2.4% | $190.04 | 15.4× | 13.6× | 18.6% |
| Kinsale Capital (KNSL) | 2.3% | $322.75 | 15.2× | 14.9× | 5.3% |
| Choice Hotels (CHH) | 2.2% | $102.41 | 14.6× | 13.6× | 5.0% |
| Vail Resorts (MTN) | 2.2% | $137.18 | 24.6× | 21.3× | 20.7% |
| Verisk Analytics (VRSK) | 2.0% | $167.85 | 21.8× | 19.3× | 10.9% |
| CoStar Group (CSGP) | 1.9% | $27.40 | 20.0× | 15.9× | 36.0% |
| Red Rock Resorts (RRR) | 1.8% | $49.54 | 18.3× | 17.0× | 20.9% |
| On Holding (ONON) | 1.5% | $29.61 | 17.3× | 14.6× | 38.1% |
| Birkenstock (BIRK) | 1.4% | $32.41 | 14.5× | 11.6× | 16.2% |
| Moderna (MRNA) | 1.4% | $192.57 | n/m | n/m | – |
| HEICO (both share classes) (HEI) | 0.5% | $303.18 | 48.0× | 42.3× | 18.3% |
| Gaming and Leisure Properties (GLPI) | 0.4% | $37.97 | 11.8× | 11.4× | 5.7% |
| Liabilities less cash and other assets (borrowing) | −9.4% | ||||
| Valued sleeve, look-through | 72.4% | 24.2× | 21.1× | 16.2% |
- Concentration. The top two holdings are 50.4% of net assets and the top ten 83.8% (Pathos sum, 18 Sep 2026). On Baron's 31 August top-ten list, which uses percentages of total investments, the top ten were 75.1%.
- Common thread. SpaceX and Tesla share a controlling founder, so roughly half the fund depends on one person's companies. The rest is spread across financial data (MSCI, FactSet, Morningstar, Verisk), brokers and insurers (Schwab, Arch, Kinsale), travel and leisure (Hyatt, Choice, Vail, Red Rock) and software (Shopify, Guidewire, Gartner).
- SpaceX's weight is rising. SpaceX was 33.7% of net assets on 4 September and 35.6% on 18 September (Baron holdings lists).
VI.Look-Through Valuation Today
Before projecting, it helps to see what the fund owns on today's earnings. Weighting each holding with positive consensus EPS by its share of net assets, the valued sleeve (72.4% of net assets) trades at 24.2× current-year and 21.1× next-year consensus earnings, with look-through earnings growth of 15.0% next year (Pathos calculations from Finviz data). Baron's own figure for the portfolio, a trailing P/E of 20.3× against 34.4× for the benchmark (30 June 2026), uses a different method and date but points the same way: excluding SpaceX, the fund's companies are not expensive for their growth.
- Tesla dominates the arithmetic. At about 209× current-year consensus EPS, Tesla is 14.8% of net assets but contributes little to look-through earnings. The other 21 valued holdings mostly trade between 10× and 50×; Shopify, at about 78×, is the main exception.
- Growth estimates. Earnings-weighted, analysts expect 16.2% annual EPS growth for the valued holdings over five years (Finviz). Baron's own 3–5-year forecast for the portfolio is 14.4%. We use the lower of the two, rounded down.
- What is missing. 37.0% of net assets, SpaceX and Moderna, has no positive current-year earnings, and the fund is leveraged. Any earnings-based view of BPTRX is therefore partial, and we say so throughout.
VII.Look-Through Five-Year Projection (Illustrative)
Method. For each listed holding with positive consensus EPS we take the current-fiscal-year and next-fiscal-year consensus (Years 1 and 2, Finviz) and the current price. Weighting by share of net assets gives a look-through P/E of 24.2× and next-year earnings growth of +15.0%. Years 3–5 grow at the lower of the holdings' earnings-weighted long-term estimate (16.2%) and Baron's own portfolio forecast (14.4%), rounded down to 14%, with bear and bull 3 points lower and higher. Exit multiples are the look-through P/E held, −15% and +15%, as in our stock notes. SpaceX (35.6%) and Moderna (1.4%) cannot be valued this way and are held at today's value. Borrowing is held at today's level, and the 1.91% expense ratio is deducted every year.
| Input | Value | Type and basis |
|---|---|---|
| NAV per share (Retail) | $264.56 | Source: Baron Capital, NAV as of 30 Sep 2026 |
| Holdings date | 18 Sep 2026 | Source: Baron Capital holdings list (% of net assets); 24 issuers, 109.4% invested |
| Valued sleeve (public, positive EPS) | 72.4% of net assets | Calculation: 22 listed holdings with consensus EPS (Finviz, 30 Sep 2026) |
| Not valued on P/E | 37.0% of net assets | SpaceX 35.6% (current-year EPS negative; see our SPCX note) and Moderna 1.4% (loss-making) |
| Borrowing (liabilities less cash) | −9.4% of net assets | Source: Baron holdings list. Fund leverage was 6.6% at 30 Jun 2026 (Baron) |
| Look-through P/E, current year | 24.2× 21.1× next year | Calculation: valued weight ÷ weighted earnings yield (harmonic mean) on each holding's current-fiscal-year consensus EPS |
| Look-through earnings growth, next year | +15.0% | Calculation: weighted consensus EPS, next fiscal year vs. current (Finviz) |
| Analysts' 5-year EPS growth, earnings-weighted | 16.2% a year | Calculation from Finviz "EPS next 5Y" for each holding |
| Baron's portfolio EPS growth forecast | 14.4% a year | Source: Baron fact sheet, 30 Jun 2026 ("EPS Growth, 3–5 year forecast") |
| Earnings growth, Years 3–5 | Bear +11% · Base +14% · Bull +17% | Assumption: lower of the two estimates above, rounded down; bear and bull ±3 points |
| Exit P/E | Bear 20.6× · Base 24.2× · Bull 27.9× | Assumption: current look-through P/E −15% / held / +15% |
| SpaceX and Moderna | Held at today's value | Assumption: 0% a year in every scenario (sensitivity in Section VIII) |
| Expense ratio | 1.91% a year | Source: StockAnalysis / FT, net expense ratio. Deducted from NAV each year |
| Required return (present value) | 10% a year | Assumption |
Year-5 NAV and implied return
| Per Retail share | Bear | Base | Bull |
|---|---|---|---|
| Earnings growth, Years 3–5 | +11% | +14% | +17% |
| Valued sleeve: earnings, Year 5 vs. Year 1 | ×1.57 | ×1.70 | ×1.84 |
| Valued sleeve: exit P/E | 20.6× | 24.2× | 27.9× |
| Valued sleeve: value change | ×1.34 (+6.0%/yr) | ×1.70 (+11.2%/yr) | ×2.12 (+16.2%/yr) |
| Year-5 NAV | $298.84 | $362.66 | $434.73 |
| vs. today's NAV of $264.56 | +13% | +37% | +64% |
| Implied annual return (5-yr CAGR) | +2.5% | +6.5% | +10.4% |
| Present value at 10% a year | $185.55 | $225.18 | $269.93 |
| Present value vs. today's NAV | −30% | −15% | +2% |
VIII.Return vs. Today's NAV
Pathos illustrative Year-5 NAV range for Retail shares, with each scenario's implied annual return. Red line: today's NAV. Dashed green line: base-case Year-5 NAV discounted at 10% a year.
At a NAV of $264.56, the look-through base case implies about +6.5% a year over five years (+2.5% bear, +10.4% bull), and is worth $225.18 today at a 10% required return, −15% versus NAV. That is well below the listed sleeve's own projected value gain of +11.2% a year, for two reasons: more than a third of the fund (SpaceX and Moderna) is held flat, and the 1.91% annual expense ratio compounds to about 9% of NAV over five years (Pathos calculation).
How much depends on SpaceX
| SpaceX return, per year (assumption) | Year-5 NAV (base case otherwise) | Fund return, per year |
|---|---|---|
| −10% | $327.63 | +4.4% |
| 0% | $362.66 | +6.5% |
| +10% | $414.87 | +9.4% |
IX.Superinvestor Holders (Dataroma)
Source: Dataroma · retrieved 30 Sep 2026X.Key Risks for Fund Investors
Single-stock concentration
SpaceX (35.6%) and Tesla (14.8%) are half the fund. A 30% fall in both would cut NAV by about 15% before leverage effects (Pathos calculation).
SpaceX valuation
SpaceX trades at $2.05T with negative current-year earnings (see our SPCX note). It carries the fund's largest weight, and our method cannot value it.
Leverage
Borrowing of 6–9% of net assets magnifies losses, and in a sharp fall it may force sales at bad prices. The 2022 loss of 42.6% shows the downside.
Costs
A 1.91% expense ratio, plus borrowing costs we could not separate, compounds to roughly 9% of NAV over five years.
Key-person and governance overlap
Both top holdings are controlled by Elon Musk; events affecting him or his companies could hit half the portfolio at once.
Taxes and distributions
The fund distributes capital gains (for example $4.17 and $4.33 per share in 2025 and $1.89 in September 2026), which are taxable in ordinary accounts.
Data limitations
Holdings change, Finviz estimates mix fiscal years and are mostly non-GAAP, and the holdings list does not disclose borrowing cost.
XI.Advice to Management
Pathos's long-term owner principles judge stewards of capital by the per-share value they build over many years, not by short-term results. Applied to the Baron Partners Fund's figures in this note, we would offer the fund manager the following recommendations.
Bring fees in line with what shareholders receive
The Retail class charges a 1.91% net expense ratio, more than twice the 0.89% category average, which compounds to about 9% of NAV over five years. With SpaceX and Tesla now 50.4% of net assets, shareholders are paying an active fee for a portfolio that is largely two positions. We would lower the fee or add breakpoints as assets grow, so more of the return stays with investors.
Reconsider leverage on a concentrated portfolio
The fund borrows to hold about 106–109% of net assets in stocks, and fell 42.6% in 2022 against 26.7% for its benchmark. Borrowed money magnifies losses at exactly the time investors are least able to bear them, and a concentrated portfolio already carries high risk. We would reduce or end borrowing while the two largest holdings exceed half the fund, and report the interest cost separately from the expense ratio.
Set and publish a position-size policy
SpaceX is 35.6% and Tesla 14.8% of net assets, and five-year standard deviation was 33.3%, about double a typical equity index fund. Concentration can be a strength when the manager understands the businesses deeply, but investors should know the limits. We would disclose the maximum weight any holding may reach and how the fund will respond if that limit is breached by price moves.
Report candidly on SpaceX and on results after all costs
Most recent gains came from SpaceX, which the fund held as a private company before its June 2026 listing; in Q2 2026 it contributed 12.99 percentage points of return. We would explain how SpaceX was valued before the listing, show performance with and without it, and discuss weak periods such as 2022 as fully as strong ones, with all returns stated after fees and borrowing costs.
Keep the long holding periods
The strategy of buying a small number of growth companies and holding them for many years keeps turnover and trading costs low, which is one of the fund's real advantages. Long holding periods also defer taxes for shareholders. We would keep this discipline and avoid realising gains for reasons other than a change in a holding's value.
Opinion, not advice. These recommendations are Pathos's opinion, based on long-term owner principles and the figures in this note; they are not investment advice.
XII.Conclusion
Baron Partners Fund has one of the best long-term records among U.S. growth funds, built on patience, concentration and leverage. Today, though, it is mainly a leveraged bet on SpaceX and Tesla, two of the most richly valued large companies in the market, held through a share class charging 1.91% a year. The remaining holdings, high-quality compounders at a look-through 24× current earnings, are attractive but make up less than half of the fund's exposure.
Pathos view (illustrative). Baron Partners has produced exceptional long-term returns by concentrating in a few founder-led companies and adding leverage. Today, half of the fund is SpaceX and Tesla. On our look-through projection, which holds SpaceX flat and charges the 1.91% fee, the base case returns about +6.5% a year, below our 10% hurdle. The fund's outcome over the next five years will be decided mainly by SpaceX and Tesla, not by the earnings of the rest of the portfolio. Investors who want that exposure can compare owning SPCX and TSLA directly, without the fee and leverage. We would revisit if (a) SpaceX produced positive earnings that allowed a P/E-based valuation, (b) concentration fell, or (c) NAV fell toward the base-case present value of about $225. This is not a recommendation to buy, sell or hold.
XIII.Sources & Notes
As-of dates. NAV and month/quarter/year-to-date returns as of 30 September 2026. Holdings as of 18 September 2026. Performance and portfolio statistics as of 30 June 2026. Expense ratio per the prospectus year from 30 April 2026. Holding-level prices and consensus as of 30 September 2026. Look-through figures, concentration sums and fee drag are Pathos calculations.
- Baron Capital, Baron Partners Fund (BPTRX) product page (retrieved 30 Sep 2026): NAV, returns, risk statistics, top ten holdings (31 Aug 2026), quarterly contributors, portfolio characteristics, distributions.
- Baron Partners Fund holdings as of 18 Sep 2026 (PDF) and as of 4 Sep 2026: all positions as % of net assets; leverage disclosure.
- Baron Partners Fund fact sheet and quarterly letter, 30 Jun 2026 (Baron Capital): leverage (6.6%), issuers and % invested, EPS growth forecast (14.4%), calendar-year returns of the Institutional class.
- StockAnalysis, BPTRX and FT fund data (retrieved 30 Sep 2026): expense ratio, category average, total and share-class net assets, 52-week range, distributions.
- Charles Schwab fund profile (retrieved Sep 2026): turnover, holdings count, minimum investment.
- Morningstar analyst commentary on Baron Partners Fund, 27 Apr 2026 (Adam Sabban).
- Finviz quote pages for each listed holding (retrieved 30 Sep 2026): prices, next-year EPS and growth, five-year EPS growth estimates.
- Dataroma, BPTRX stock page (retrieved 30 Sep 2026): “Symbol or Name not found”; no superinvestor holders listed. Dataroma’s latest 13F quarter is Q2 2026.
Not verified or not used: the fund's borrowing cost and whether it is included in the 1.91% expense ratio; the value at which the fund carried SpaceX before the IPO; Retail-class calendar returns for 2020, 2021 and 2023 (Institutional shown); holdings after 18 September 2026.