N-Q 1 formnq0605.txt BARON INVESTMENT FUNDS TRUST - JUNE 30, 2005 FORM N-Q UNITED STATES -------------------------- SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL | Washington, DC 20549 |--------------------------| |OMB Number: 3235 -0578 | |Expires: February 28, 2006| |Estimated average burden | |hours per response...20.00| -------------------------- FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-5032 -------------------------------------------- BARON INVESTMENT FUNDS TRUST ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 767 Fifth Avenue, 49th Floor, New York, NY 10153 ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Linda S. Martinson, Esq. c/o Baron Investment Funds Trust, 767 Fifth Avenue, 49th Floor, NY, 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: June 30, 2005 -------------------- Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form-5 (Sections 239.4 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. SEC 2455 (4-04) ITEM 1. BARON ASSET FUND SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (UNAUDITED)
Shares Cost Value -------------------------------------------------------------------------------------- COMMON STOCKS (98.36%) ADVERTISING SERVICES (0.44%) 150,000 Getty Images, Inc.* $ 10,110,290 $ 11,139,000 APPAREL (1.72%) 1,000,000 Polo Ralph Lauren Corp., Cl A 19,737,919 43,110,000 BUSINESS SERVICES (11.90%) 650,000 Brown & Brown, Inc. 26,577,442 29,211,000 4,500,000 ChoicePoint, Inc.* 52,047,773 180,225,000 1,225,000 Iron Mountain, Inc.* 33,816,735 37,999,500 1,150,000 Robert Half Intl., Inc.* 1,202,006 28,715,500 600,000 SEI Investments Co. 22,537,033 22,410,000 --------------- --------------- 136,180,989 298,561,000 CONSULTING (1.82%) 1,250,000 Hewitt Associates, Inc.* 30,901,952 33,137,500 280,000 Moody's Corp. 7,256,123 12,588,800 --------------- --------------- 38,158,075 45,726,300 CONSUMER SERVICES (1.27%) 150,000 H&R Block, Inc. 6,283,167 8,752,500 450,000 Weight Watchers Intl., Inc.* 12,953,988 23,224,500 --------------- --------------- 19,237,155 31,977,000 EDUCATION (6.72%) 1,400,000 Apollo Group, Inc., Cl A* 14,084,763 109,508,000 1,100,000 DeVry, Inc.* 4,407,187 21,890,000 1,100,000 Education Mgmt. Corp.* 6,886,520 37,103,000 --------------- --------------- 25,378,470 168,501,000 ENERGY SERVICES (6.14%) 150,000 Arch Coal, Inc. 7,043,606 8,170,500 350,000 Premcor, Inc.* 12,116,414 25,963,000 500,000 SEACOR Holdings, Inc.* 14,322,278 32,150,000 200,000 Ultra Petroleum Corp.* 4,847,419 6,072,000 2,400,000 XTO Energy, Inc. 18,213,449 81,576,000 --------------- --------------- 56,543,166 153,931,500 FINANCIAL SERVICES -- ASSET MANAGEMENT (2.89%) 650,000 Eaton Vance Corp. 12,749,664 15,541,500 850,000 Nuveen Investments, Inc. 28,950,827 31,977,000 400,000 T. Rowe Price Group, Inc. 21,584,167 25,040,000 --------------- --------------- 63,284,658 72,558,500 FINANCIAL SERVICES -- BANKING (0.51%) 425,000 Commerce Bancorp, Inc. 10,525,978 12,881,750 FINANCIAL SERVICES -- BROKERAGE AND EXCHANGES (7.64%) 9,400,000 Charles Schwab Corp. 23,571,677 106,032,000 290,000 Chicago Mercantile Exchange Holdings, Inc. 21,207,409 85,695,000 --------------- --------------- 44,779,086 191,727,000 FINANCIAL SERVICES -- INSURANCE (4.47%) 1,000,000 Arch Capital Group, Ltd.* 33,841,383 45,050,000 800,000 Assurant, Inc. 25,946,594 28,880,000 1,350,000 Axis Capital Holdings, Ltd. 34,853,219 38,205,000 --------------- --------------- 94,641,196 112,135,000 FINANCIAL SERVICES -- MISCELLANEOUS (2.42%) 950,000 First Marblehead Corp.* 37,507,715 33,307,000 125,000 The Student Loan Corp. 17,812,742 27,475,000 --------------- --------------- 55,320,457 60,782,000
SHARES COST VALUE ----------- --------------- --------------- HEALTHCARE FACILITIES (3.58%) 800,000 Community Health Systems, Inc.* $ 20,710,259 $ 30,232,000 1,500,000 Manor Care, Inc. 32,956,389 59,595,000 --------------- --------------- 53,666,648 89,827,000 HEALTHCARE PRODUCTS (3.70%) 540,000 DENTSPLY International, Inc. 23,319,203 29,160,000 800,000 Henry Schein, Inc.* 22,796,151 33,216,000 250,000 The Cooper Companies, Inc. 17,337,629 15,215,000 200,000 Zimmer Holdings, Inc.* 6,087,903 15,234,000 --------------- --------------- 69,540,886 92,825,000 HEALTHCARE SERVICES (2.73%) 375,000 Caremark Rx, Inc.* 8,088,355 16,695,000 500,000 Charles River Laboratories Intl., Inc.* 14,951,698 24,125,000 425,000 Fisher Scientific Intl., Inc.* 24,522,276 27,582,500 --------------- --------------- 47,562,329 68,402,500 HEALTHCARE SERVICES -- INSURANCE (3.33%) 1,200,000 WellPoint, Inc.* 33,488,049 83,568,000 HOME BUILDING (4.49%) 64,000 NVR, Inc.* 22,534,495 51,840,000 600,000 Toll Brothers, Inc.* 24,270,884 60,930,000 --------------- --------------- 46,805,379 112,770,000 HOTELS AND LODGING (2.63%) 600,000 Choice Hotels Intl., Inc. 6,079,268 39,420,000 400,000 Four Seasons Hotels, Inc. 10,216,158 26,440,000 --------------- --------------- 16,295,426 65,860,000 MEDIA (2.02%) 350,000 Cox Radio, Inc., Cl A* 2,127,695 5,512,500 260,000 Radio One, Inc., Cl A* 2,068,065 3,309,800 480,000 Radio One, Inc., Cl D* 3,222,669 6,129,600 905,200 Saga Comm., Inc., Cl A* 3,825,994 12,672,800 350,000 Univision Communications, Inc., Cl A* 3,148,975 9,642,500 400,000 XM Satellite Radio Holdings, Inc., Cl A* 10,264,435 13,464,000 --------------- --------------- 24,657,833 50,731,200 REAL ESTATE SERVICES (4.38%) 314,000 Alexander's, Inc.*# 20,453,936 78,107,500 600,000 CB Richard Ellis Group, Inc.* 20,815,727 26,316,000 141,844 Corrections Corp. of America* 1,418 5,567,377 --------------- --------------- 41,271,081 109,990,877 RECREATION AND RESORTS (13.02%) 2,400,000 Kerzner Intl., Ltd.*# 77,808,281 136,680,000 3,000,000 Vail Resorts, Inc.*# 61,273,805 84,300,000 850,000 Wynn Resorts, Ltd.* 19,006,090 40,179,500 1,459,408 Wynn Resorts, Ltd.*@ 30,030,772 65,536,906 --------------- --------------- 188,118,948 326,696,406 RESTAURANTS (1.04%) 750,000 The Cheesecake Factory, Inc.* 15,604,748 26,047,500 RETAIL -- CONSUMER STAPLES (2.26%) 480,000 Whole Foods Market, Inc. 23,163,847 56,784,000 RETAIL -- SPECIALTY STORES (2.45%) 550,000 CarMax, Inc.* 14,602,973 14,657,500 125,000 Dollar Tree Stores, Inc.* 644,513 3,000,000 325,000 Ethan Allen Interiors, Inc. 8,962,407 10,890,750 500,000 O'Reilly Automotive, Inc.* 12,587,918 14,905,000 550,000 Tiffany & Co. 17,271,108 18,018,000 --------------- --------------- 54,068,919 61,471,250 TRANSPORTATION (2.73%) 750,000 C. H. Robinson Worldwide, Inc. 27,854,391 43,650,000 500,000 Expeditors International of Washington, Inc. 24,492,142 24,905,000 --------------- --------------- 52,346,533 68,555,000
SHARES COST VALUE ----------- --------------- --------------- UTILITY SERVICES (2.06%) 2,100,000 Southern Union Co.* $ 27,564,041 $ 51,555,000 --------------- --------------- TOTAL COMMON STOCKS 1,268,052,106 2,468,113,783 --------------- --------------- CONVERTIBLE PREFERRED STOCKS (0.23%) EDUCATION (0.01%) 105,264 Apollo International, Inc. S-A CV Pfd.*@# 2,000,016 400,000 HEALTHCARE SERVICES (0.22%) 5,849 Somerford Corp. S-A Conv. Pfd.*@ 9,090,399 5,490,855 --------------- --------------- TOTAL CONVERTIBLE PREFERRED STOCKS 11,090,415 5,890,855 --------------- --------------- WARRANTS (0.07%) REAL ESTATE SERVICES 70,922 Corrections Corporation of America Warrants Exp 09/29/2005*@ 0 1,783,688 --------------- --------------- PRINCIPAL AMOUNT ---------------- CORPORATE BONDS (0.11%) HEALTHCARE SERVICES $2,666,667 Somerford Corp. 8.50% Sub. Conv. Deb. due 04/23/2006@ 2,666,667 2,666,667 --------------- --------------- SHORT TERM MONEY MARKET INSTRUMENTS (1.08%) 27,000,000 Citicorp 3.20% due 07/01/2005 27,000,000 27,000,000 --------------- --------------- TOTAL INVESTMENTS (99.85%) $ 1,308,809,188 2,505,454,993 =============== CASH AND OTHER ASSETS LESS LIABILITIES (0.15%) 3,725,905 --------------- NET ASSETS (EQUIVALENT TO $53.59 PER SHARE BASED ON 46,821,273 SHARES OUTSTANDING) $ 2,509,180,898 ===============
--------------- % Represents percentage of net assets @ Restricted securities # An "affiliated" investment may include any company in which the Fund owns 5% or more of its outstanding voting shares. * Non-income producing securities ** For Federal income tax purposes the cost basis is $1,310,808,528. Aggregate unrealized appreciation and depreciation of investments are $1,218,477,254 and $23,830,789, respectively. SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Fund uses the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Fund on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Fund with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. For additional information regarding the Fund's other significant accounting policies, please refer to the Fund's most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. BARON ASSET FUND - AFFILIATED INVESTMENTS*
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sep. 30, 2004 and Additions Reductions June 30, 2005 June 30, 2005 ---------------------------------------------------------------------------------------------------------------------------- Alexander's, Inc. 314,000 314,000 $ 78,107,500 Apollo International, Inc. S-A CV Pfd. 105,264 105,264 400,000 ChoicePoint, Inc. 4,600,000 100,000 4,500,000 ** Kerzner Intl., Ltd. 2,400,000 2,400,000 136,680,000 Saga Comm., Inc., Cl A 1,000,000 94,800 905,200 ** Vail Resorts, Inc. 3,000,000 3,000,000 84,300,000 ------------- TOTAL INVESTMENT IN "AFFILIATES" (11.9% OF NET ASSETS) $299,487,500 =============
** As of June 30, 2005, no longer an affiliate. * Affiliated investments, as defined in the Investment Company Act of 1940, are investments in which a Fund held 5% or more of the outstanding voting securities during the nine months ended June 30, 2005. BARON GROWTH FUND SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (UNAUDITED)
Shares Cost Value -------------------------------------------------------------------------------------- COMMON STOCKS (89.08%) ADVERTISING SERVICES (0.89%) 350,000 Getty Images, Inc.* $ 7,538,649 $ 25,991,000 600,000 Harte-Hanks, Inc. 12,152,057 17,838,000 --------------- --------------- 19,690,706 43,829,000 APPAREL (1.73%) 1,450,000 Carter's, Inc.*# 39,178,712 84,651,000 BUILDING MACHINERY (0.50%) 500,000 Tractor Supply Co.* 18,466,565 24,550,000 BUSINESS SERVICES (2.07%) 300,000 Brown & Brown, Inc. 9,830,330 13,482,000 1,600,000 ChoicePoint, Inc.* 35,852,211 64,080,000 1,200,000 Gevity HR, Inc. 23,307,192 24,036,000 --------------- --------------- 68,989,733 101,598,000 CHEMICAL (1.30%) 1,250,000 Senomyx, Inc.* 11,809,472 20,637,500 1,550,000 Symyx Technologies, Inc.* 24,306,392 43,369,000 --------------- --------------- 36,115,864 64,006,500 COMMUNICATIONS (2.52%) 2,400,000 American Tower Corp. Cl A* 8,847,010 50,448,000 800,000 Crown Castle Intl. Corp.* 3,043,909 16,256,000 700,000 Equinix, Inc.* 21,287,891 30,338,000 1,985,000 SBA Communications Corp.* 8,342,089 26,797,500 --------------- --------------- 41,520,899 123,839,500 CONSULTING (0.97%) 1,320,000 Hewitt Associates, Inc.* 32,467,627 34,993,200 600,000 LECG Corp.* 12,477,679 12,756,000 --------------- --------------- 44,945,306 47,749,200 CONSUMER SERVICES (1.22%) 725,000 Chemed Corp. 26,098,096 29,638,000 1,070,000 Morningstar, Inc.* 22,384,293 30,120,500 --------------- --------------- 48,482,389 59,758,500 EDUCATION (5.23%) 3,700,000 DeVry, Inc.*# 62,024,339 73,630,000 2,500,000 Education Mgmt. Corp.* 58,705,529 84,325,000 700,000 Strayer Education, Inc. 57,859,739 60,382,000 1,150,000 Universal Technical Institute, Inc.* 31,350,206 38,180,000 --------------- --------------- 209,939,813 256,517,000 ENERGY SERVICES (5.81%) 2,450,000 Encore Acquisition Co.*# 63,866,681 100,450,000 1,100,000 FMC Technologies, Inc.* 25,188,996 35,167,000 400,000 Petroleum Helicopters, Inc.* 10,077,790 9,416,000 1,200,000 Premcor, Inc.* 26,228,102 89,016,000 300,000 Range Resources Corp. 7,615,538 8,070,000 440,000 SEACOR Holdings, Inc.* 17,768,097 28,292,000 400,000 Whiting Petroleum Corp.* 11,647,029 14,524,000 --------------- --------------- 162,392,233 284,935,000 FINANCIAL SERVICES -- ASSET MANAGEMENT (1.93%) 350,000 BlackRock, Inc., Cl A 7,036,572 28,157,500 1,400,000 Cohen & Steers, Inc. 20,654,871 28,854,000 650,000 Eaton Vance Corp. 11,290,146 15,541,500 260,000 Gabelli Asset Mgmt., Inc., Cl A 3,811,537 11,489,400 290,000 Nuveen Investments, Inc. 7,748,686 10,909,800 --------------- --------------- 50,541,812 94,952,200
SHARES COST VALUE ---------- --------------- --------------- FINANCIAL SERVICES -- BANKING (4.38%) 2,000,000 Amegy Bancorporation, Inc. $ 38,945,228 $ 44,760,000 500,000 Cathay General Bancorp 18,387,045 16,855,000 850,000 Center Financial Corp.# 18,904,650 21,105,500 500,000 Central Pacific Financial Corp. 17,462,814 17,800,000 250,000 East West Bancorp, Inc. 9,414,456 8,397,500 1,250,000 First Republic Bank 39,098,182 44,162,500 3,800,000 UCBH Holdings, Inc. 76,388,071 61,712,000 --------------- --------------- 218,600,446 214,792,500 FINANCIAL SERVICES -- BROKERAGE & EXCHANGES (2.24%) 30,000 Chicago Mercantile Exchange Holdings, Inc. 1,170,650 8,865,000 1,000,000 International Securities Exchange, Inc.* 27,415,685 25,110,000 2,000,000 Jefferies Group, Inc. 57,267,480 75,780,000 --------------- --------------- 85,853,815 109,755,000 FINANCIAL SERVICES -- INSURANCE (1.51%) 1,650,000 Arch Capital Group, Ltd.* 51,045,431 74,332,500 FINANCIAL SERVICES -- MISCELLANEOUS (2.30%) 1,000,000 CheckFree Corp.* 18,042,917 34,060,000 2,250,000 First Marblehead Corp.* 70,907,663 78,885,000 --------------- --------------- 88,950,580 112,945,000 FOOD AND AGRICULTURE (1.03%) 1,224,000 Ralcorp Hldgs., Inc.* 46,665,123 50,367,600 GAMING SERVICES (0.88%) 650,000 Scientific Games Corp.* 14,358,938 17,504,500 925,000 Shuffle Master, Inc.* 26,319,015 25,927,750 --------------- --------------- 40,677,953 43,432,250 GOVERNMENT SERVICES (1.07%) 1,150,000 Anteon Intl. Corp.* 34,526,771 52,463,000 HEALTHCARE FACILITIES (4.32%) 2,200,000 Community Health Systems, Inc.* 55,160,341 83,138,000 1,800,000 Manor Care, Inc. 33,815,991 71,514,000 1,100,000 United Surgical Partners Intl., Inc.* 23,181,527 57,288,000 --------------- --------------- 112,157,859 211,940,000 HEALTHCARE PRODUCTS (2.24%) 1,250,000 DepoMed, Inc.* 7,499,408 5,462,500 2,000,000 Edwards Lifesciences Corp.* 59,602,587 86,040,000 275,000 INAMED Corp.* 12,316,626 18,416,750 --------------- --------------- 79,418,621 109,919,250 HEALTHCARE SERVICES (4.00%) 1,703,200 Charles River Laboratories Intl., Inc.* 52,306,788 82,179,400 650,000 Gen-Probe, Inc.* 27,639,666 23,549,500 160,000 IDEXX Laboratories, Inc.* 9,006,923 9,972,800 650,000 LabOne, Inc.* 22,795,231 25,876,500 1,825,000 Odyssey Healthcare, Inc.*# 22,290,243 26,316,500 1,050,000 PRA International* 24,471,025 28,119,000 --------------- --------------- 158,509,876 196,013,700 HEALTHCARE SERVICES -- INSURANCE (5.55%) 3,800,000 AMERIGROUP Corp.*# 70,530,101 152,760,000 3,199,500 Centene Corp.*# 30,057,986 107,439,210 525,000 Universal American Financial Corp.* 12,333,610 11,875,500 --------------- --------------- 112,921,697 272,074,710 HOME BUILDING (1.70%) 200,000 Beazer Homes USA, Inc. 7,777,240 11,430,000 150,000 Brookfield Homes Corp. 1,213,561 6,840,000 1,000,000 Hovnanian Enterprises, Inc.* 27,153,147 65,200,000 --------------- --------------- 36,143,948 83,470,000 HOTELS AND LODGING (2.65%) 800,000 Choice Hotels Intl., Inc. 9,354,699 52,560,000 1,175,000 Four Seasons Hotels, Inc. 35,010,721 77,667,500 --------------- --------------- 44,365,420 130,227,500
SHARES COST VALUE ---------- --------------- --------------- MEDIA (2.33%) 480,000 Central European Media Enterprises, Ltd.* $ 22,193,721 $ 23,222,400 650,000 Citadel Broadcasting Corp.* 11,533,827 7,442,500 925,000 Cumulus Media, Inc.* 16,147,745 10,896,500 500,000 Entravision Comm. Corp., Cl A* 2,952,986 3,895,000 1,300,000 Gray Television, Inc. 10,939,970 15,678,000 2,000,000 LIN TV Corp., Cl A* 43,977,344 27,780,000 250,000 Radio One, Inc., Cl A* 2,371,787 3,182,500 960,000 Radio One, Inc., Cl D* 10,916,406 12,259,200 697,600 Saga Comm., Inc., Cl A* 5,748,754 9,766,400 --------------- --------------- 126,782,540 114,122,500 MEDICAL EQUIPMENT (0.29%) 300,000 Intuitive Surgical, Inc.* 4,435,847 13,992,000 PRINTING AND PUBLISHING (0.64%) 954,700 ProQuest Co.* 28,698,519 31,304,613 REAL ESTATE SERVICES (3.53%) 75,000 Alexander's, Inc.* 5,683,588 18,656,250 1,750,000 CB Richard Ellis Group, Inc.* 38,014,092 76,755,000 666,667 CBRE Realty Finance, Inc. 144A@ 10,000,005 10,000,005 899,600 CoStar Group, Inc.* 38,457,938 39,222,560 2,429,800 Spirit Finance Corp.* 28,350,595 28,550,150 --------------- --------------- 120,506,218 173,183,965 RECREATION AND RESORTS (8.93%) 1,750,000 Ameristar Casinos, Inc. 34,529,101 45,657,500 200,000 Boyd Gaming Corp. 5,345,491 10,226,000 525,000 Gaylord Entertainment Co.* 15,225,311 24,407,250 1,500,000 Isle of Capri Casinos, Inc.*# 31,924,387 39,300,000 1,800,000 Kerzner Intl., Ltd.* 49,095,087 102,510,000 1,700,000 Station Casinos, Inc. 39,029,399 112,880,000 1,250,000 Vail Resorts, Inc.* 21,897,070 35,125,000 925,000 Wynn Resorts, Ltd.* 11,982,288 43,724,750 537,677 Wynn Resorts, Ltd.*@ 11,063,956 24,145,192 --------------- --------------- 220,092,090 437,975,692 RESTAURANTS (5.53%) 950,000 California Pizza Kitchen, Inc.* 24,386,635 25,906,500 750,000 Panera Bread Co., Cl A* 25,159,032 46,563,750 600,000 Peet's Coffee & Tea, Inc.* 12,288,337 19,824,000 1,250,000 P.F. Chang's China Bistro, Inc.* 58,814,683 73,725,000 350,000 Red Robin Gourmet Burgers, Inc.* 20,659,220 21,693,000 2,400,000 The Cheesecake Factory, Inc.* 51,421,500 83,352,000 --------------- --------------- 192,729,407 271,064,250 RETAIL -- CONSUMER STAPLES (0.62%) 1,275,000 Copart, Inc.* 30,167,238 30,345,000 RETAIL -- SPECIALTY STORES (5.95%) 875,000 Blue Nile, Inc.* 26,058,720 28,603,750 2,075,000 Cabela's, Inc.* 50,040,711 44,322,000 1,650,000 CarMax, Inc.* 34,948,928 43,972,500 2,125,000 Dick's Sporting Goods, Inc.*# 73,411,508 82,003,750 25,000 DSW, Inc.* 475,000 623,750 400,000 Ethan Allen Interiors, Inc. 9,975,567 13,404,000 250,000 Guitar Center, Inc.* 14,405,358 14,592,500 900,000 PETCO Animal Supplies, Inc.* 17,449,210 26,388,000 1,777,500 Select Comfort Corp.* 37,583,531 38,091,825 --------------- --------------- 264,348,533 292,002,075 SOFTWARE (0.60%) 725,000 Kronos, Inc.* 16,625,953 29,282,750 TRANSPORTATION (1.84%) 1,242,500 Genesee & Wyoming, Inc.* 28,652,530 33,808,425 500,000 JetBlue Airways Corp.* 11,429,926 10,220,000 500,000 Landstar System, Inc.* 11,951,708 15,060,000 450,000 UTI Worldwide, Inc. 31,481,477 31,329,000 --------------- --------------- 83,515,641 90,417,425 UTILITY SERVICES (0.78%) 1,549,999 Southern Union Co.* 19,474,294 38,052,476 --------------- --------------- TOTAL COMMON STOCKS 2,957,477,852 4,369,861,656 --------------- ---------------
SHARES COST VALUE ---------- --------------- --------------- CONVERTIBLE PREFERRED STOCKS (0.15%) PHARMACEUTICAL 750,000 Reliant Pharmaceuticals LLC Series D @ $ 15,000,000 $ 7,500,000 --------------- --------------- PRINCIPAL AMOUNT ---------------- CORPORATE BONDS (1.16%) RECREATION AND RESORTS $26,000,000 Wynn Resorts 6.00% Sub. Conv. Deb. due 07/15/2015 25,431,928 57,075,720 --------------- --------------- SHORT TERM MONEY MARKET INSTRUMENTS (9.90%) 39,996,444 Citicorp 3.20% due 07/01/2005 39,996,444 39,996,444 100,387,586 General Electric Capital Corp. 3.20% due 07/07/2005 100,387,586 100,387,586 11,486,351 Steamboat Funding 3.30% due 07/11/2005 11,486,351 11,486,351 131,612,413 Steamboat Funding 3.30% due 07/08/2005 131,612,413 131,612,413 138,003,555 UBS Securities 3.20% due 07/01/2005 138,003,555 138,003,555 64,013,648 UBS Securities 3.20% due 07/06/2005 64,013,648 64,013,648 --------------- --------------- TOTAL SHORT TERM MONEY MARKET INSTRUMENTS 485,499,997 485,499,997 --------------- --------------- TOTAL INVESTMENTS (100.29%) $ 3,483,409,777 4,919,937,373 =============== LIABILITIES LESS CASH AND OTHER ASSETS (-0.29%) (14,211,626) --------------- NET ASSETS (EQUIVALENT TO $46.22 PER SHARE BASED ON 106,143,733 SHARES OUTSTANDING) $ 4,905,725,747 ===============
--------------- % Represents percentage of net assets @ Restricted securities # An "affiliated" investment may include any company in which the Fund owns 5% or more of its outstanding voting shares. * Non-income producing securities ** For Federal income tax purposes the cost basis is $3,495,925,214. Aggregate unrealized appreciation and depreciation of investments are $1,519,441,407 and $95,429,248, respectively. SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Fund uses the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Fund on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Fund with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. For additional information regarding the Fund's other significant accounting policies, please refer to the Fund's most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. BARON GROWTH FUND - AFFILIATED INVESTMENTS*
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sep. 30, 2004 and Additions Reductions June 30, 2005 June 30, 2005 ----------------------------------------------------------------------------------------------------------------------------------- AMERIGROUP, Corp.^ 1,900,000 1,900,000 3,800,000 $152,760,000 Arch Capital Group, Ltd. 1,650,000 1,650,000 ** Carter's, Inc. 1,200,000 250,000 1,450,000 84,651,000 Centene Corp. + 1,600,000 1,600,000 500 3,199,500 107,439,210 Center Financial Corp. - 850,000 850,000 21,105,500 DeVry, Inc. 2,250,000 1,450,000 3,700,000 73,630,000 Dick's Sporting Goods, Inc. 310,000 1,815,000 2,125,000 82,003,750 Encore Acquisition Co. 2,200,000 250,000 2,450,000 100,450,000 Isle of Capri Casinos, Inc. 1,275,000 225,000 1,500,000 39,300,000 Kerzner Intl., Ltd. 1,800,000 1,800,000 ** Odyssey Healthcare, Inc. 1,575,000 1,020,550 770,550 1,825,000 26,316,500 ----------- TOTAL INVESTMENT IN "AFFILIATES" (14.0% OF NET ASSETS) $687,655,960 ============
^ Received 1,900,000 shares from 2:1 stock split. + Received 1,600,000 shares from 2:1 stock split. ** As of June 30, 2005, no longer an affiliate. * Affiliated investments, as defined in the Investment Company Act of 1940, are investments in which a Fund held 5% or more of the outstanding voting securities during the nine months ended June 30, 2005. BARON SMALL CAP FUND SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (UNAUDITED)
Shares Cost Value ------------------------------------------------------------------------------------ COMMON STOCKS (93.49%) ADVERTISING SERVICES (1.25%) 550,000 R.H. Donnelley Corp.* $ 16,121,330 $ 34,089,000 APPAREL (1.40%) 650,000 Carter's, Inc.* 21,552,174 37,947,000 BUILDING MACHINERY (1.36%) 750,000 Tractor Supply Co.* 26,626,906 36,825,000 BUILDING MATERIALS (3.49%) 1,000,000 Eagle Materials, Inc., Cl B# 62,853,442 90,490,000 45,600 Eagle Materials, Inc.# 3,644,792 4,222,104 --------------- --------------- 66,498,234 94,712,104 BUSINESS SERVICES (4.53%) 725,000 ChoicePoint, Inc.* 6,949,762 29,036,250 1,800,000 DX Services PLC^ 11,518,326 11,173,320 1,200,000 First Advantage Corp., Cl A* 23,607,916 27,972,000 1,250,000 Infocrossing, Inc.* 12,138,750 15,587,500 975,000 Iron Mountain, Inc.* 10,010,523 30,244,500 1,000,000 PeopleSupport, Inc.*# 8,640,576 9,120,000 --------------- --------------- 72,865,853 123,133,570 CHEMICAL (0.29%) 550,000 Crompton Corp. 8,231,663 7,782,500 COMMUNICATIONS (9.13%) 5,550,000 Alamosa Hldgs., Inc.* 32,186,799 77,145,000 3,350,000 American Tower Corp., Cl A* 19,090,630 70,417,000 250,000 NeuStar, Inc.* 6,088,082 6,400,000 2,000,000 SBA Communications Corp.* 10,934,507 27,000,000 4,250,000 UbiquiTel, Inc.* 17,865,463 34,680,000 1,100,000 USA Mobility, Inc.* 28,583,701 32,296,000 --------------- --------------- 114,749,182 247,938,000 CONSULTING (3.18%) 275,000 Corporate Executive Board Co.* 4,596,431 21,540,750 400,000 Gartner Group, Inc.* 3,794,060 4,248,000 1,650,000 LECG Corp.*# 32,939,131 35,079,000 1,450,000 Navigant Consulting, Inc.* 24,599,100 25,607,000 --------------- --------------- 65,928,722 86,474,750 CONSUMER PRODUCTS (1.15%) 100,000 Dolby Laboratories, Inc.* 2,035,270 2,206,000 1,625,000 DTS, Inc.*# (formerly Digital Theater Systems, Inc.) 34,251,425 28,973,750 --------------- --------------- 36,286,695 31,179,750 EDUCATION (6.05%) 500,000 Apollo Group, Inc., Cl A* 4,269,664 39,110,000 1,075,000 Career Education Corp.* 2,380,979 39,355,750 475,000 Educate, Inc. * 5,452,417 6,721,250 444,000 Strayer Education, Inc. 37,452,157 38,299,440 1,231,700 Universal Technical Institute, Inc.* 36,738,144 40,892,440 --------------- --------------- 86,293,361 164,378,880 ENERGY SERVICES (0.57%) 164,300 Energy Savings Income Fund^ 1,674,355 2,360,268 560,000 Petroleum Helicopters, Inc.* 14,202,259 13,182,400 --------------- --------------- 15,876,614 15,542,668 FINANCIAL SERVICES - ASSET MANAGEMENT (0.41%) 250,000 Gabelli Asset Mgmt., Inc., Cl A 4,356,166 11,047,500 FINANCIAL SERVICES - BANKING (0.45%) 1,500,000 Cash Systems, Inc.*# 10,062,346 12,375,000
SHARES COST VALUE ---------- --------------- --------------- FINANCIAL SERVICES - INSURANCE (0.33%) 200,000 Arch Capital Group, Ltd.* $ 5,515,966 $ 9,010,000 FINANCIAL SERVICES -- MISCELLANEOUS (0.74%) 800,000 KKR Financial Corp.* 19,658,636 20,000,000 GOVERNMENT SERVICES (6.40%) 1,252,500 Anteon Intl. Corp.* 32,627,766 57,139,050 2,600,000 FLIR Systems, Inc.* 58,864,900 77,584,000 1,260,749 Mantech Intl. Corp. * 24,467,143 39,133,649 --------------- --------------- 115,959,809 173,856,699 HEALTHCARE FACILITIES (3.12%) 1,350,000 American Retirement Corp.* 15,100,304 19,737,000 1,250,000 United Surgical Partners Intl., Inc.* 22,780,745 65,100,000 --------------- --------------- 37,881,049 84,837,000 HEALTHCARE PRODUCTS (1.48%) 600,000 INAMED Corp.* 29,950,811 40,182,000 HEALTHCARE SERVICES (0.74%) 750,000 PRA International* 17,574,319 20,085,000 HOME BUILDING (2.07%) 1,231,600 Brookfield Homes Corp. 26,689,083 56,160,960 LEISURE (2.11%) 1,000,000 Lakes Entertainment, Inc.* 13,665,909 15,400,000 1,340,000 MarineMax, Inc.*# 35,595,091 41,875,000 --------------- --------------- 49,261,000 57,275,000 MACHINERY & ELECTRONICS (0.69%) 619,800 Flowserve Corp.* 18,456,330 18,755,148 MANUFACTURING (3.69%) 1,232,000 Actuant Corp., Cl A* 49,012,545 59,062,080 503,800 Intermagnetics General Corp.* 12,048,645 15,496,888 1,100,000 Measurement Specialties, Inc.*# 26,507,672 25,531,000 --------------- --------------- 87,568,862 100,089,968 MEDIA (3.39%) 1,250,000 CKX, Inc.* 14,102,674 16,081,250 500,000 Cumulus Media, Inc.* 7,511,278 5,890,000 401,100 DakTronics, Inc.* 9,191,759 8,026,011 100,000 Entercom Comm. Corp.* 3,249,852 3,329,000 1,350,000 Gray Television, Inc. 11,348,508 16,281,000 2,250,000 Radio One, Inc., Cl D* 25,672,711 28,732,500 380,000 Regal Entertainment Group, Cl A 4,528,832 7,174,400 325,000 Westwood One, Inc.* 3,497,838 6,639,750 --------------- --------------- 79,103,452 92,153,911 MEDICAL EQUIPMENT (5.60%) 2,000,000 Immucor, Inc.* 12,479,187 57,900,000 750,000 Intuitive Surgical, Inc.* 11,321,688 34,980,000 941,600 Kensey Nash Corp.*# 28,782,924 28,473,984 660,191 Lifeline Systems, Inc.* 15,537,121 21,205,335 400,000 Wilson Greatbatch Technologies, Inc.* 7,691,478 9,560,000 --------------- --------------- 75,812,398 152,119,319 MINERALS & MINING (0.71%) 750,000 Novelis, Inc. 16,429,106 19,260,000 PRINTING AND PUBLISHING (1.25%) 190,000 Bowne & Co., Inc. 3,226,682 2,747,400 1,500,000 Interactive Data Corp.* 22,596,629 31,170,000 --------------- --------------- 25,823,311 33,917,400 REAL ESTATE SERVICES (3.70%) 1,000,000 CB Richard Ellis Group, Inc.* 29,930,480 43,860,000 4,000,000 Countrywide PLC^ 21,998,600 21,425,600 3,000,000 Spirit Finance Corp.* 35,601,168 35,250,000 --------------- --------------- 87,530,248 100,535,600
SHARES COST VALUE ---------- --------------- --------------- RECREATION AND RESORTS (8.04%) 700,000 Ameristar Casinos, Inc. $ 12,671,576 $ 18,263,000 1,400,000 Gaylord Entertainment Co.* 41,624,725 65,086,000 2,400,000 Great Wolf Resorts, Inc.*# 48,288,108 49,056,000 486,500 Isle of Capri Casinos, Inc.* 12,177,400 12,746,300 550,000 Kerzner Intl., Ltd.* 13,662,714 31,322,500 44,101 Penn National Gaming, Inc.* 1,326,945 1,609,686 850,000 Wynn Resorts, Ltd. * 12,016,631 40,179,500 --------------- --------------- 141,768,099 218,262,986 RESTAURANTS (4.96%) 1,800,000 AFC Enterprises, Inc.*# 31,365,445 23,724,000 250,000 BJ's Restaurants, Inc.* 3,875,000 5,085,000 350,000 Panera Bread Co., Cl A* 9,869,197 21,729,750 200,000 P.F. Chang's China Bistro, Inc.* 8,574,459 11,796,000 1,150,000 Texas Roadhouse, Inc.* 27,788,211 39,962,500 937,500 The Cheesecake Factory, Inc.* 19,254,684 32,559,375 --------------- --------------- 100,726,996 134,856,625 RETAIL - CONSUMER STAPLES (0.94%) 1,000,000 NuCO2, Inc.*# 24,923,904 25,670,000 RETAIL - SPECIALTY STORES (7.73%) 1,500,000 99 Cents Only Stores* 25,838,917 19,065,000 500,000 Aeropostale, Inc.* 7,774,812 16,800,000 1,157,503 Casual Male Retail Group, Inc.*# 5,361,112 8,461,347 1,100,000 Design Within Reach, Inc.*# 17,344,209 19,910,000 250,000 DSW, Inc.* 5,923,993 6,237,500 950,000 Fossil, Inc.* 20,252,121 21,565,000 1,300,000 Hot Topic, Inc.* 20,830,936 24,856,000 600,000 Kenneth Cole Productions, Inc., Cl A 10,318,483 18,672,000 150,000 PETCO Animal Supplies, Inc.* 4,370,186 4,398,000 814,807 Provide Commerce, Inc.*# 16,090,651 17,591,683 3,000,000 Quiksilver, Inc.* 25,050,216 47,940,000 155,000 Zumiez, Inc.* 3,551,701 4,518,250 --------------- --------------- 162,707,337 210,014,780 TRANSPORTATION (2.54%) 650,000 Grupo Aeroportuario Del Sureste SA de CV 19,412,363 20,702,500 650,000 JetBlue Airways Corp.* 11,502,059 13,286,000 3,100,000 WestJet Airlines, Ltd.*^ 30,859,041 34,918,090 --------------- --------------- 61,773,463 68,906,590 --------------- --------------- TOTAL COMMON STOCKS 1,730,563,425 2,539,374,708 --------------- --------------- WARRANTS (0.19%) BUSINESS SERVICES (0.04%) 222,575 Infocrossing, Inc. Warrants Exp 10/16/2008*@ 31,783 1,026,071 --------------- --------------- RETAIL - SPECIALTY STORES (0.15%) 1,407,353 Casual Male Retail Group, Inc. Warrants Exp 04/26/2007*@# 2,117,151 3,832,500 100,000 Casual Male Retail Group, Inc. Warrants Exp 07/02/2010*@# 49,000 255,000 --------------- --------------- 2,166,151 4,087,500 --------------- --------------- TOTAL WARRANTS 2,197,934 5,113,571 --------------- --------------- PRINCIPAL AMOUNT ---------------- CORPORATE BONDS (0.21%) PRINTING AND PUBLISHING $ 7,000,000 Penton Media, Inc. 10.375% Sr. Sub. NT due 06/15/2011 4,879,415 5,810,000 --------------- ---------------
PRINCIPAL AMOUNT COST VALUE ---------------- --------------- --------------- SHORT TERM MONEY MARKET INSTRUMENTS (6.67%) 9,005,332 Citicorp 3.20% due 07/01/2005 $ 9,005,332 $ 9,005,332 59,994,667 Exxon Investment Corp. 3.20% due 07/01/2005 59,994,667 59,994,667 50,000,000 General Electric Capital Corp. 3.20% due 07/07/2005 50,000,000 50,000,000 61,999,999 General Electric Capital Corp. 3.20% due 07/06/2005 61,999,999 61,999,999 --------------- --------------- TOTAL SHORT TERM MONEY MARKET INSTRUMENTS 180,999,998 180,999,998 --------------- --------------- TOTAL INVESTMENTS (100.56%) $1,918,640,772 2,731,298,277 =============== LIABILITIES LESS CASH AND OTHER ASSETS (-0.56%) (15,206,015) --------------- NET ASSETS (EQUIVALENT TO $22.93 PER SHARE BASED ON 118,453,001 SHARES OUTSTANDING) $2,716,092,262 ===============
--------------- % Represents percentage of net assets @ Restricted securities # An "affiliated" investment may include any company in which the Fund owns 5% or more of its outstanding voting shares. ^ Foreign domiciled corporation * Non-income producing securities ** For Federal income tax purposes the cost basis is $1,919,829,577. Aggregate unrealized appreciation and depreciation of investments are $869,352,239 and $57,883,539, respectively. SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Fund uses the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Fund on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Fund with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. For additional information regarding the Fund's other significant accounting policies, please refer to the Fund's most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. BARON SMALL CAP FUND - AFFILIATED ISSUERS*
Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sep. 30, 2004 and Additions Reductions June 30, 2005 June 30, 2005 ---------------------------------------------------------------------------------------------------------------------------------- AFC Enterprises, Inc. - 1,800,000 1,800,000 $23,724,000 Cash Systems, Inc. - 1,500,000 1,500,000 12,375,000 Casual Male Retail Group, Inc. 1,157,503 1,157,503 8,461,347 Casual Male Retail Group, Inc., Warrants Exp 04/26/2007 1,407,353 1,407,353 3,832,500 Casual Male Retail Group, Inc., Warrants Exp 07/02/2010 100,000 100,000 255,000 Design Within Reach, Inc. 350,000 750,000 1,100,000 19,910,000 DTS, Inc. (formerly Digital Theater Systems, Inc.) 1,300,000 325,000 1,625,000 28,973,750 Eagle Materials, Inc., Cl B 800,000 200,000 1,000,000 90,490,000 Eagle Materials, Inc. - 45,600 45,600 4,222,104 EMAK Worldwide, Inc. 500,000 500,000 - ** Great Wolf Resorts, Inc. - 2,400,000 2,400,000 49,056,000 Immucor, Inc. + 1,987,500 875,000 862,500 2,000,000 ** Kensey Nash Corp. 525,000 416,600 941,600 28,473,984 LECG Corp. 1,650,000 1,650,000 35,079,000 MarineMax, Inc. 651,300 688,700 1,340,000 41,875,000 Measurement Specialties, Inc. 343,700 762,300 6,000 1,100,000 25,531,000 NuCO2, Inc. - 1,000,000 1,000,000 25,670,000 PeopleSupport, Inc. - 1,000,000 1,000,000 9,120,000 Provide Commerce, Inc. 900,000 85,193 814,807 17,591,683 ------------ TOTAL INVESTMENT IN "AFFILIATES" (15.6% OF NET ASSETS) $424,640,368 ============
+ Received 875,000 shares from 3:2 stock split. ** As of June 30, 2005, no longer an affiliate. * Affiliated investments, as defined in the Investment Company Act of 1940, are investments in which a Fund held 5% or more of the outstanding voting securities during the nine months ended June 30, 2005. BARON iOPPORTUNITY FUND SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (UNAUDITED)
Shares Cost Value ------------------------------------------------------------------------------------ COMMON STOCKS (92.98%) ADVERTISING SERVICES (8.76%) 75,000 Digitas, Inc.* $ 489,814 $ 855,750 75,000 Getty Images, Inc.* 2,563,942 5,569,500 15,000 Google, Inc.* 1,781,590 4,412,250 125,000 ValueClick, Inc.* 1,405,623 1,541,250 --------------- --------------- 6,240,969 12,378,750 BUSINESS SERVICES (13.80%) 200,000 Ariba, Inc.* 1,232,598 1,160,000 85,000 ChoicePoint, Inc.* 2,995,233 3,404,250 150,000 InfoSpace, Inc.* 5,568,673 4,939,500 200,000 Monster Worldwide, Inc.* 3,129,193 5,736,000 80,000 Stamps.com, Inc.* 526,302 1,500,000 350,000 Terremark Worldwide, Inc.* 2,425,399 2,450,000 200,000 WindsorTech, Inc.* 746,000 310,000 --------------- --------------- 16,623,398 19,499,750 CABLE (2.12%) 100,000 Comcast Corp., Cl A* 2,302,692 2,995,000 COMMUNICATIONS (18.20%) 200,000 Alamosa Hldgs., Inc.* 1,468,115 2,780,000 250,000 American Tower Corp., Cl A* 1,342,760 5,255,000 116,200 Arbinet-thexchange, Inc.* 1,933,546 778,540 85,000 Equinix, Inc.* 2,588,577 3,683,900 200,000 Ibasis, Inc.* 522,500 544,000 100,000 NeuStar, Inc.* 2,274,415 2,560,000 40,000 Research in Motion, Ltd.* 1,243,066 2,950,000 350,000 SBA Communications Corp.* 1,199,536 4,725,000 300,000 UbiquiTel, Inc.* 1,424,881 2,448,000 --------------- --------------- 13,997,396 25,724,440 COMMUNICATIONS EQUIPMENT (1.17%) 50,000 QUALCOMM, Inc. 1,727,587 1,650,500 COMPUTER TECHNOLOGY (0.65%) 25,000 Apple Computer, Inc.* 1,054,270 920,250 CONSUMER PRODUCTS (0.59%) 125,000 TiVo, Inc.* 824,318 835,000 CONSUMER SERVICES (4.05%) 75,000 eBay, Inc.* 925,271 2,475,750 75,000 priceline.com, Inc.* 1,567,179 1,749,750 1,970,000 Tencent Holdings, Ltd.^ 1,475,811 1,495,624 --------------- --------------- 3,968,261 5,721,124 EDUCATION (1.11%) 20,000 Apollo Group, Inc., Cl A* 173,534 1,564,400 ENTERPRISE HARDWARE (7.41%) 25,000 CDW Corp. 1,486,716 1,427,250 150,000 Dell, Inc.* 4,373,549 5,926,500 120,000 Intel Corp. 2,805,370 3,127,200 --------------- --------------- 8,665,635 10,480,950 ENTERPRISE SOFTWARE (1.00%) 150,000 Opsware, Inc.* 762,523 768,000 30,000 Symantec Corp.* 676,519 652,200 --------------- --------------- 1,439,042 1,420,200 FINANCIAL SERVICES -- BROKERAGE & EXCHANGES (10.54%) 100,000 Ameritrade Holding Corp.* 1,495,650 1,859,000 325,000 Charles Schwab Corp. 3,517,982 3,666,000 16,500 Chicago Mercantile Exchange Holdings, Inc. 3,058,789 4,875,750 275,000 E*TRADE Financial Corp.* 1,236,156 3,847,250 75,000 TradeStation Group, Inc.* 650,685 643,500 --------------- --------------- 9,959,262 14,891,500
SHARES COST VALUE ---------- --------------- --------------- FINANCIAL SERVICES -- MISCELLANEOUS (1.01%) 200,000 E-Loan, Inc.* $ 621,725 $ 668,000 50,000 optionsXpress Holdings, Inc. 716,513 760,000 --------------- --------------- 1,338,238 1,428,000 GAMING SERVICES (0.60%) 75,000 Neteller PLC*^ 927,819 853,178 HOTELS AND LODGING (0.76%) 65,000 LodgeNet Entertainment Corp.* 1,072,500 1,078,350 LEISURE (3.48%) 25,000 Electronic Arts, Inc.* 1,507,264 1,415,250 75,000 JAMDAT Mobile, Inc.* 1,284,462 2,076,000 25,000 Netease.com, Inc. ADS* 1,277,022 1,427,750 --------------- --------------- 4,068,748 4,919,000 MANUFACTURING (3.50%) 375,000 Flextronics Intl., Ltd.* 4,337,925 4,953,750 MEDIA (5.95%) 500,000 Loudeye Corp.* 750,000 365,000 50,000 Netflix, Inc.* 879,202 820,500 225,000 Time Warner, Inc.* 3,542,759 3,759,750 100,000 Yahoo! Inc.* 1,174,425 3,465,000 --------------- --------------- 6,346,386 8,410,250 REAL ESTATE SERVICES (3.78%) 35,000 CoStar Group, Inc.* 610,743 1,526,000 1,250,000 homestore, Inc.* 2,979,652 2,537,500 100,000 ZipRealty, Inc.* 1,319,302 1,284,000 --------------- --------------- 4,909,697 5,347,500 RETAIL -- SPECIALTY STORES (4.50%) 45,000 Blue Nile, Inc.* 1,242,130 1,471,050 225,000 FTD Group, Inc.* 2,893,080 2,553,750 66,900 Provide Commerce, Inc.* 953,673 1,444,371 175,000 Varsity Group, Inc.* 813,987 885,500 --------------- --------------- 5,902,870 6,354,671 --------------- --------------- TOTAL COMMON STOCKS 95,880,547 131,426,563 --------------- --------------- WARRANTS (0.00%) MEDIA 200,000 Loudeye Corp. Warrants Exp 10/16/2008*@ 0 0 --------------- --------------- PRINCIPAL AMOUNT ---------------- SHORT TERM MONEY MARKET INSTRUMENTS (7.60%) $10,749,999 UBS Securities 3.20% due 07/01//2005 10,749,999 10,749,999 --------------- --------------- TOTAL INVESTMENTS (100.58%) $106,630,546 142,176,562 =============== LIABILITIES LESS CASH AND OTHER ASSETS (-0.58%) (825,614) --------------- NET ASSETS (EQUIVALENT TO $8.52 PER SHARE BASED ON 16,591,807 SHARES OUTSTANDING) $141,350,948 ===============
--------------- % Represents percentage of net assets * Non-income producing securities @ Restricted securities ^ Foreign domiciled corporation ** For Federal income tax purposes the cost basis is $109,545,646. Aggregate unrealized appreciation and depreciation of investments are $37,786,252 and $5,155,336, respectively. SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Fund uses the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Fund on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Fund with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. For additional information regarding the Fund's other significant accounting policies, please refer to the Fund's most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. BARON FIFTH AVENUE GROWTH FUND SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (UNAUDITED)
Shares Cost Value ------------------------------------------------------------------------------------ COMMON STOCKS (91.72%) ADVERTISING SERVICES (4.38%) 25,000 Getty Images, Inc.* $ 1,770,354 $ 1,856,500 5,000 Google, Inc.* 667,122 1,470,750 --------------- --------------- 2,437,476 3,327,250 BUSINESS SERVICES (2.89%) 55,000 Iron Mountain, Inc.* 1,678,279 1,706,100 15,000 Paychex, Inc. 543,152 488,100 --------------- --------------- 2,221,431 2,194,200 CABLE (1.18%) 30,000 Comcast Corp., Cl A* 856,320 898,500 COMMUNICATIONS (3.98%) 100,000 American Tower Corp., Cl A* 1,811,466 2,102,000 12,500 Research in Motion, Ltd.* 916,133 921,875 --------------- --------------- 2,727,599 3,023,875 COMMUNICATIONS EQUIPMENT (0.87%) 20,000 QUALCOMM, Inc. 691,539 660,200 COMPUTER TECHNOLOGY (0.61%) 12,500 Apple Computer, Inc.* 533,056 460,125 CONSULTING (0.59%) 10,000 Moody's Corp. 418,008 449,600 CONSUMER PRODUCTS (1.64%) 10,000 Avon Products, Inc. 392,455 378,500 10,000 Nike, Inc., Cl A 824,417 866,000 --------------- --------------- 1,216,872 1,244,500 CONSUMER SERVICES (1.30%) 30,000 eBay, Inc.* 1,201,438 990,300 EDUCATION (1.03%) 10,000 Apollo Group, Inc., Cl A* 709,056 782,200 ENERGY SERVICES (4.02%) 16,252 Kinder Morgan, Inc. 976,521 1,352,167 49,999 XTO Energy, Inc. 1,063,193 1,699,466 --------------- --------------- 2,039,714 3,051,633 ENTERPRISE HARDWARE (4.55%) 10,000 CDW Corp. 594,298 570,900 50,000 Dell, Inc.* 1,799,558 1,975,500 35,000 Intel Corp. 909,533 912,100 --------------- --------------- 3,303,389 3,458,500 ENTERPRISE SOFTWARE (0.43%) 15,000 Symantec Corp.* 338,258 326,100 FINANCIAL SERVICES - ASSET MANAGEMENT (2.47%) 30,000 T. Rowe Price Group, Inc. 1,820,688 1,878,000 FINANCIAL SERVICES - BANKING (2.12%) 25,000 Golden West Financial Corp. 1,406,572 1,609,500 FINANCIAL SERVICES - BROKERAGE & EXCHANGES (5.99%) 50,000 Ameritrade Holding Corp.* 747,825 929,500 90,000 Charles Schwab Corp. 881,549 1,015,200 5,500 Chicago Mercantile Exchange Holdings, Inc. 1,052,847 1,625,250 70,000 E*TRADE Financial Corp.* 785,416 979,300 --------------- --------------- 3,467,637 4,549,250
SHARES COST VALUE ---------- --------------- --------------- FINANCIAL SERVICES - INSURANCE (1.92%) 8 Berkshire Hathaway, Inc., Cl A* $ 717,340 $ 668,000 8,000 The Progressive Corp. 671,465 790,480 --------------- --------------- 1,388,805 1,458,480 HEALTHCARE PRODUCTS (0.75%) 7,500 Zimmer Holdings, Inc.* 589,760 571,275 HEALTHCARE SERVICES (2.88%) 12,500 Fisher Scientific Intl., Inc.* 725,253 811,250 11,500 Laboratory Corp. of America Holdings* 544,057 573,850 15,000 Quest Diagnostics, Inc. 746,735 799,050 --------------- --------------- 2,016,045 2,184,150 HEALTHCARE SERVICES - INSURANCE (3.89%) 30,000 UnitedHealth Group, Inc. 1,050,414 1,564,200 20,000 WellPoint, Inc.* 1,031,914 1,392,800 --------------- --------------- 2,082,328 2,957,000 HOME BUILDING (4.20%) 20,000 Centex Corp. 1,155,434 1,413,400 17,500 Toll Brothers, Inc.* 1,263,427 1,777,125 --------------- --------------- 2,418,861 3,190,525 HOTELS AND LODGING (0.44%) 5,000 Four Seasons Hotels, Inc. 265,523 330,500 LEISURE (0.75%) 10,000 Electronic Arts, Inc.* 626,075 566,100 MANUFACTURING (2.17%) 125,000 Flextronics Intl., Ltd.* 1,745,652 1,651,250 MEDIA (8.13%) 85,000 News Corp., Cl A 1,387,292 1,375,300 75,000 Time Warner, Inc.* 1,275,319 1,253,250 50,000 Univision Comm., Inc., Cl A* 1,452,382 1,377,500 45,000 Walt Disney Co. 1,124,862 1,133,100 30,000 Yahoo! Inc.* 828,386 1,039,500 --------------- --------------- 6,068,241 6,178,650 PHARMACEUTICAL (1.88%) 10,000 Amgen, Inc.* 571,981 604,600 10,260 Genentech, Inc.* 600,436 823,673 --------------- --------------- 1,172,417 1,428,273 REAL ESTATE SERVICES (3.67%) 20,000 Kimco Realty Corp. 933,241 1,178,200 20,000 Vornado Realty Trust 1,196,066 1,608,000 --------------- --------------- 2,129,307 2,786,200 RECREATION AND RESORTS (6.17%) 30,000 Carnival Corp. 1,378,959 1,636,500 30,000 Las Vegas Sands Corp.* 981,056 1,072,500 50,000 MGM Mirage, Inc.* 1,350,450 1,979,000 --------------- --------------- 3,710,465 4,688,000 RESTAURANTS (0.85%) 12,500 Starbucks Corp.* 510,036 645,750
SHARES COST VALUE ---------- --------------- --------------- RETAIL - CONSUMER STAPLES (7.02%) 20,260 Costco Wholesale Corp. $ 795,743 $ 908,053 40,000 CVS Corp. 979,957 1,162,800 30,000 Target Corp. 1,368,594 1,632,300 10,000 Wal-Mart Stores, Inc. 540,263 482,000 25,000 Walgreen Co. 906,299 1,149,750 --------------- --------------- 4,590,856 5,334,903 RETAIL - SPECIALTY STORES (8.27%) 40,000 Bed Bath & Beyond, Inc.* 1,503,694 1,671,200 15,000 Best Buy Co., Inc. 769,250 1,028,250 47,500 Coach, Inc.* 985,903 1,594,575 20,000 Kohl's Corp.* 1,046,749 1,118,200 15,000 Lowe's Companies, Inc. 777,213 873,300 --------------- --------------- 5,082,809 6,285,525 TRANSPORTATION (0.68%) 7,500 United Parcel Service, Inc. 571,713 518,700 --------------- --------------- TOTAL COMMON STOCKS 60,357,946 69,679,014 --------------- --------------- PRINCIPAL AMOUNT ---------------- SHORT TERM MONEY MARKET INSTRUMENTS (8.56%) $6,499,999 UBS Securities 3.20% due 07/01/2005 6,499,999 6,499,999 --------------- --------------- TOTAL INVESTMENTS (100.28%) $ 66,857,945 76,179,013 =============== LIABILITIES LESS CASH AND OTHER ASSETS (-0.28%) (208,952) --------------- NET ASSETS (EQUIVALENT TO $11.19 PER SHARE BASED ON 6,790,407 SHARES OUTSTANDING) $ 75,970,061 ===============
--------------- % Represents percentage of net assets * Non-income producing securities ** For Federal income tax purposes the cost basis is $66,883,706. Aggregate unrealized appreciation and depreciation of investments are $10,406,040 and $1,110,733, respectively. SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Fund uses the NASDAQ Official Closing Price. Securities traded in foreign markets are valued using prices reported by local foreign markets and translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time the net asset value is determined. Where market quotations are not readily available, or in the Adviser's judgment, they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the securities will be valued by the Adviser using procedures established by the Board of Trustees. The Adviser has a fair valuation committee comprised of senior executives and members of the Board. Factors the committee uses include whether the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no assurance, however, that a fair valuation used by the Fund on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. Debt instruments having a remaining maturity greater than sixty days will be valued at the highest bid price from the dealer maintaining an active market in that security or on the basis of prices obtained from a pricing service approved by the Board of Trustees. Money market instruments held by the Fund with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value. For additional information regarding the Fund's other significant accounting policies, please refer to the Fund's most recent Annual or Semi-Annual shareholder report filed on the Securities and Exchange Commission's website, www.sec.gov. Item 2. 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 as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. Item 3. Exhibits. (a) Separate certifications for the principal executive officer and the principal financial officer of the Registrant, as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, 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 President and Chief Executive Officer Date: August 23, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, 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 President and Chief Executive Officer By: /s/ Peggy Wong ------------------------------------------ Peggy Wong Treasurer and Chief Financial Officer Date: August 23, 2005