-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U53iGjYv9H5eeOuD8OhlOafq0HZ4iD89GMJi2TNdRfr3mEsIBeJsgJXUH0JIIrKX SteGuueHgY3iHS9DkETv+A== 0001017918-06-000123.txt : 20060818 0001017918-06-000123.hdr.sgml : 20060818 20060818163539 ACCESSION NUMBER: 0001017918-06-000123 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060630 FILED AS OF DATE: 20060818 DATE AS OF CHANGE: 20060818 EFFECTIVENESS DATE: 20060818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARON INVESTMENT FUNDS TRUST (f/k/a BARON ASSET FUND) CENTRAL INDEX KEY: 0000810902 IRS NUMBER: 136891420 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05032 FILM NUMBER: 061043993 BUSINESS ADDRESS: STREET 1: 767 FIFTH AVE STREET 2: 49TH FL CITY: NEW YORK STATE: NY ZIP: 10153 BUSINESS PHONE: 2125832000 MAIL ADDRESS: STREET 1: 767 FIFTH AVE STREET 2: 49TH FL CITY: NEW YORK STATE: NY ZIP: 10153 FORMER COMPANY: FORMER CONFORMED NAME: BARON ASSET FUND DATE OF NAME CHANGE: 19920703 0000810902 S000000582 BARON ASSET FUND C000001635 BARON ASSET FUND BARAX 0000810902 S000000583 BARON GROWTH FUND C000001636 BARON GROWTH FUND BGRFX 0000810902 S000000584 BARON SMALL CAP FUND C000001637 BARON SMALL CAP FUND BSCFX 0000810902 S000000585 BARON iOPPORTUNITY FUND C000001638 BARON iOPPORTUNITY FUND BIOPX 0000810902 S000000586 BARON FIFTH AVENUE GROWTH FUND C000001639 BARON FIFTH AVENUE GROWTH FUND BFTHX N-Q 1 formnq063006.txt FORM N-Q FOR THE PERIOD ENDED JUNE 30, 2006 UNITED STATES -------------------------- SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL | Washington, DC 20549 |--------------------------| |OMB Number: 3235 -0578 | |Expires: May 31, 2007| |Estimated average burden | |hours per response...21.09| -------------------------- 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, 2006 -------------------- Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 239.24 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. PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. SEC 2455 (8-05) ITEM 1. BARON ASSET FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (96.27%) - ---------------------------------------------------------------------------------------------------- ADVERTISING SERVICES (0.82%) 425,000 Getty Images, Inc.* $ 28,468,520 $ 26,991,750 APPAREL (1.76%) 1,050,000 Polo Ralph Lauren Corp., Cl A 22,642,344 57,645,000 BUILDING MATERIALS (0.61%) 400,000 Florida Rock Industries, Inc. 25,028,235 19,868,000 BUSINESS SERVICES (10.50%) 1,400,000 Brown & Brown, Inc. 29,309,040 40,908,000 4,190,000 ChoicePoint, Inc.* 47,851,592 175,016,300 1,300,000 Iron Mountain, Inc.* 36,556,664 48,594,000 1,150,000 Robert Half Intl., Inc. 1,202,006 48,300,000 625,000 SEI Investments Co. 23,692,162 30,550,000 ----------- ----------- 138,611,464 343,368,300 CONSULTING (1.15%) 1,000,000 Hewitt Associates, Inc.* 23,902,496 22,480,000 280,000 Moody's Corp. 7,256,123 15,248,800 ----------- ----------- 31,158,619 37,728,800 DISTRIBUTION (1.79%) 800,000 Fastenal Co. 34,012,532 32,232,000 600,000 Pool Corp. (formerly known as SCP Pool Corp.) 28,003,741 26,178,000 ----------- ----------- 62,016,273 58,410,000 EDUCATION (1.65%) 500,000 Apollo Group, Inc., Cl A* 4,894,672 25,835,000 1,275,000 DeVry, Inc.* 7,614,588 28,011,750 ----------- ----------- 12,509,260 53,846,750 ENERGY SERVICES (6.94%) 350,000 Arch Coal, Inc. 8,679,590 14,829,500 550,000 Helmerich & Payne, Inc. 37,021,701 33,143,000 500,000 SEACOR Holdings, Inc.* 14,322,278 41,050,000 200,000 Ultra Petroleum Corp.* 4,847,419 11,854,000 299,999 Valero Energy Corp. 10,642,371 19,955,934 2,400,000 XTO Energy, Inc. 18,213,449 106,248,000 ----------- ----------- 93,726,808 227,080,434 FINANCIAL SERVICES - ASSET MANAGEMENT (3.89%) 600,000 AllianceBernstein Holding L.P. 28,433,768 36,684,000 950,000 Eaton Vance Corp. 20,863,872 23,712,000 850,000 Nuveen Investments, Inc., Cl A 28,950,827 36,592,500 800,000 T. Rowe Price Group, Inc. 21,584,167 30,248,000 ----------- ----------- 99,832,634 127,236,500 FINANCIAL SERVICES - BANKING (1.06%) 450,000 City National Corp. 32,695,656 29,290,500 150,000 Commerce Bancorp, Inc. 3,694,838 5,350,500 ----------- ----------- 36,390,494 34,641,000 FINANCIAL SERVICES - BROKERAGE AND EXCHANGES (9.04%) 8,800,000 Charles Schwab Corp. 21,422,499 140,624,000 255,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 18,498,371 125,243,250 1,000,000 Jefferies Group, Inc. 29,505,852 29,630,000 ----------- ----------- 69,426,722 295,497,250
BARON ASSET FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- FINANCIAL SERVICES - INSURANCE (4.72%) 1,000,000 Arch Capital Group, Ltd.* $33,841,383 $59,460,000 850,000 Assurant, Inc. 28,107,970 41,140,000 900,000 Axis Capital Holdings, Ltd. 22,637,258 25,749,000 950,000 HCC Insurance Holdings, Inc. 29,895,422 27,968,000 ----------- ----------- 114,482,033 154,317,000 FINANCIAL SERVICES - MISCELLANEOUS (1.99%) 700,000 The First Marblehead Corp. 24,434,142 39,858,000 125,000 The Student Loan Corp. 17,812,742 25,250,000 ----------- ----------- 42,246,884 65,108,000 GAMING SERVICES (0.76%) 700,000 Scientific Games Corp., Cl A* 20,327,603 24,934,000 HEALTHCARE FACILITIES (3.16%) 900,000 Community Health Systems, Inc.* 24,384,740 33,075,000 1,500,000 Manor Care, Inc. 32,956,389 70,380,000 ----------- ----------- 57,341,129 103,455,000 HEALTHCARE PRODUCTS (2.54%) 565,000 DENTSPLY International, Inc. 24,654,030 34,239,000 800,000 Henry Schein, Inc.* 22,796,151 37,384,000 200,000 Zimmer Holdings, Inc.* 6,087,903 11,344,000 ----------- ----------- 53,538,084 82,967,000 HEALTHCARE SERVICES (5.02%) 700,000 Advanced Medical Optics, Inc.* 31,405,216 35,490,000 250,000 Caremark Rx, Inc. 5,389,305 12,467,500 125,000 Charles River Laboratories Intl., Inc.* 3,530,597 4,600,000 525,000 Covance, Inc.* 30,655,338 32,140,500 425,000 Fisher Scientific Intl., Inc.* 24,522,276 31,046,250 190,000 IDEXX Laboratories, Inc.* 14,791,757 14,274,700 525,000 Stericycle, Inc.* 31,427,789 34,177,500 ----------- ----------- 141,722,278 164,196,450 HEALTHCARE SERVICES - INSURANCE (1.56%) 700,000 WellPoint, Inc.* 17,819,752 50,939,000 HOTELS AND LODGING (2.75%) 850,000 Choice Hotels Intl., Inc. 4,185,563 51,510,000 625,000 Four Seasons Hotels, Inc. 23,375,834 38,400,000 ----------- ----------- 27,561,397 89,910,000 MEDIA (0.99%) 600,000 Lamar Advertising Co., Cl A* 33,089,975 32,316,000 REAL ESTATE (2.38%) 1,850,000 CB Richard Ellis Group, Inc., Cl A* 21,963,346 46,065,000 141,844 Corrections Corp. of America* 1,419 7,509,221 525,000 The St. Joe Company 34,866,683 24,433,500 ----------- ----------- 56,831,448 78,007,721 REAL ESTATE - HOME BUILDING (1.86%) 250,000 M.D.C. Holdings, Inc. 15,462,427 12,982,500 40,000 NVR, Inc.* 13,394,243 19,650,000 1,100,000 Toll Brothers, Inc.* 22,617,686 28,127,000 ----------- ----------- 51,474,356 60,759,500
BARON ASSET FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- REAL ESTATE - REITS (3.98%) 314,000 Alexander's, Inc.*# $20,453,936 $85,332,640 80,000 AvalonBay Communities, Inc. 8,451,711 8,849,600 175,000 Forest City Enterprises, Inc., Cl A 7,309,363 8,734,250 250,000 SL Green Realty Corp. 21,214,463 27,367,500 ----------- ----------- 57,429,473 130,283,990 RECREATION AND RESORTS (15.10%) 700,000 Boyd Gaming Corp. 30,904,281 28,252,000 2,400,000 Kerzner Intl., Ltd.*# 77,808,281 190,272,000 3,000,000 Vail Resorts, Inc.*# 61,273,805 111,300,000 850,000 Wynn Resorts, Ltd.* 19,006,090 62,305,000 1,459,408 Wynn Resorts, Ltd.*@ 30,030,772 101,625,876 ----------- ----------- 219,023,229 493,754,876 RESTAURANTS (0.66%) 800,000 The Cheesecake Factory, Inc.* 17,142,316 21,560,000 RETAIL - CONSUMER STAPLES (1.78%) 900,000 Whole Foods Market, Inc. 25,563,386 58,176,000 RETAIL - SPECIALTY STORES (1.96%) 550,000 CarMax, Inc.* 14,518,495 19,503,000 500,000 O'Reilly Automotive, Inc.* 12,587,919 15,595,000 800,000 Tiffany & Co. 26,059,638 26,416,000 150,000 Urban Outfitters, Inc.* 3,809,659 2,623,500 ----------- ----------- 56,975,711 64,137,500 TRANSPORTATION (3.99%) 1,500,000 C. H. Robinson Worldwide, Inc. 27,854,391 79,950,000 900,000 Expeditors International of Washington, Inc. 21,676,121 50,409,000 ----------- ----------- 49,530,512 130,359,000 UTILITY SERVICES (1.86%) 2,250,000 Southern Union Co. 28,662,596 60,885,000 ----------- ----------- TOTAL COMMON STOCKS 1,690,573,535 3,148,379,821 ------------- ------------- - ---------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS (0.29%) - ---------------------------------------------------------------------------------------------------- EDUCATION (0.01%) 105,264 Apollo International, Inc. S-A CV Pfd.*@# 2,000,016 400,000 HEALTHCARE SERVICES (0.28%) 5,849 Somerford Corp. S-A Conv. Pfd.*@ 9,090,399 9,090,397 ----------- ----------- TOTAL CONVERTIBLE PREFERRED STOCKS 11,090,415 9,490,397 ----------- -----------
BARON ASSET FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - --------------------------------------------------------------------------------
Principal Amount Cost Value - ---------------------------------------------------------------------------------------------------- CORPORATE BONDS (0.06%) - ---------------------------------------------------------------------------------------------------- HEALTHCARE SERVICES $ 1,833,334 Somerford Corp. 8.50% Sub. Conv. Deb. due 04/23/2007@ $ 1,833,334 $ 1,833,334 ------------ ------------ - ---------------------------------------------------------------------------------------------------- SHORT TERM MONEY MARKET INSTRUMENTS (3.10%) - ---------------------------------------------------------------------------------------------------- 2,199,028 Cargil Global Funding plc 5.30% due 07/03/2006 2,199,028 2,199,028 4,799,999 Chesham Finance Ltd. 5.29% due 07/03/2006 4,799,999 4,799,999 19,974,100 Citigroup Funding, Inc. 5.19% due 07/05/2006 19,974,100 19,974,100 24,479,420 Ebury Finance LLC 5.33% due 07/05/2006 24,479,420 24,479,420 19,991,217 Ecolab, Inc. 5.27% due 07/03/2006 19,991,217 19,991,217 9,988,400 General Electric Capital Corp. 5.23% due 07/05/2006 9,988,400 9,988,400 19,982,433 SanPaolo IMI U.S Financial Co. 5.27% due 07/05/2006 19,982,433 19,982,433 ------------ ------------ TOTAL SHORT TERM MONEY MARKET INSTRUMENTS 101,414,597 101,414,597 -------------- ------------- TOTAL INVESTMENTS (99.72%) $1,804,911,881 3,261,118,149 ============== CASH AND OTHER ASSETS LESS LIABILITIES (0.28%) 9,216,484 ------------- NET ASSETS (EQUIVALENT TO $59.93 PER SHARE BASED ON 54,570,221 SHARES OUTSTANDING) $3,270,334,633 ==============
- --------------- % Represents percentage of net assets @ Restricted and fair valued securities # See Note 3 regarding "affiliated investments". * Non-income producing securities See Notes to Schedules of Investments. BARON GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (94.75%) - ---------------------------------------------------------------------------------------------------- ADVERTISING SERVICES (0.48%) 100,000 Getty Images, Inc.* $ 1,681,600 $ 6,351,000 800,000 Harte-Hanks, Inc. 17,379,908 20,512,000 ----------- ----------- 19,061,508 26,863,000 APPAREL (2.15%) 2,900,000 Carter's, Inc.* 39,178,712 76,647,000 1,000,000 Under Armour, Inc. Cl A* 32,681,805 42,620,000 ----------- ----------- 71,860,517 119,267,000 AUTOMOTIVE PARTS (0.24%) 7,946,000 Delphi Corp.* 13,538,582 13,508,200 BUSINESS SERVICES (2.89%) 600,000 Brown & Brown, Inc. 9,830,329 17,532,000 1,592,000 ChoicePoint, Inc.* 35,519,748 66,497,840 1,325,000 CoPart, Inc.* 31,401,691 32,542,000 750,000 Gevity HR, Inc. 13,453,363 19,912,500 850,000 Macquarie Infrastructure Company Trust 28,527,469 23,451,500 ----------- ----------- 118,732,600 159,935,840 CHEMICAL (0.90%) 700,000 Senomyx, Inc.* 6,340,864 10,101,000 1,650,000 Symyx Technologies, Inc.* 26,885,343 39,847,500 ----------- ----------- 33,226,207 49,948,500 COMMUNICATIONS (1.97%) 1,104,820 Equinix, Inc.* 36,440,373 60,610,425 1,850,000 SBA Communications Corp., Cl A* 7,166,474 48,359,000 ----------- ----------- 43,606,847 108,969,425 CONSULTING (0.18%) 550,000 LECG Corp.* 11,292,307 10,158,500 CONSUMER PRODUCTS (1.02%) 1,550,000 Church & Dwight Co., Inc. 57,122,687 56,451,000 CONSUMER SERVICES (1.80%) 925,000 Chemed Corp. 35,405,713 50,440,250 1,183,000 Morningstar, Inc.* 25,529,492 49,070,840 ----------- ----------- 60,935,205 99,511,090 DISTRIBUTION (2.19%) 1,200,000 Beacon Roofing Supply, Inc.* 30,032,478 26,412,000 875,000 Pool Corp. (formerly known as SCP Pool Corp.) 34,074,625 38,176,250 945,000 Watsco, Inc. 61,254,076 56,529,900 ----------- ----------- 125,361,179 121,118,150 EDUCATION (3.15%) 3,700,000 DeVry, Inc.*# 62,024,338 81,289,000 700,000 Strayer Education, Inc. 57,859,739 67,984,000 1,150,000 Universal Technical Institute, Inc.* 31,350,206 25,323,000 ----------- ----------- 151,234,283 174,596,000 ENERGY SERVICES (7.69%) 1,050,000 Carbo Ceramics, Inc. 62,945,173 51,586,500 250,000 Complete Production Services, Inc.* 6,005,910 5,910,000 400,000 Core Laboratories N.V.* 19,417,274 24,416,000 950,000 Dresser-Rand Group, Inc.* 22,927,256 22,306,000 3,700,000 Encore Acquisition Co.*# 64,684,811 99,271,000 750,000 EXCO Resources, Inc.* 9,812,500 8,550,000 1,100,000 FMC Technologies, Inc.* 25,188,996 74,206,000 300,000 Foundation Coal Holdings, Inc. 11,010,993 14,079,000 1,000,000 International Coal Group, Inc.* 9,995,123 7,190,000 100,000 Petrohawk Energy Corp.* 1,342,750 1,260,000 637,500 PHI, Inc.* 18,390,290 21,165,000 487,500 Range Resources Corp. 8,333,343 13,255,125 440,000 SEACOR Holdings, Inc.* 17,768,097 36,124,000 700,000 SunPower Corp., Cl A* 19,912,723 19,614,000 650,000 Whiting Petroleum Corp.* 22,550,925 27,215,500 ----------- ----------- 320,286,164 426,148,125
BARON GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- FINANCIAL SERVICES - ASSET MANAGEMENT (1.37%) 1,600,000 Cohen & Steers, Inc. $24,788,860 $37,760,000 650,000 Eaton Vance Corp. 11,290,146 16,224,000 260,000 GAMCO Investors, Inc., Cl A 3,811,537 9,557,600 290,000 Nuveen Investments, Inc., Cl A 7,748,686 12,484,500 ----------- ----------- 47,639,229 76,026,100 FINANCIAL SERVICES - BANKING (4.35%) 625,000 Cathay General Bancorp 22,783,925 22,737,500 850,000 Center Financial Corp.# 18,904,650 20,094,000 800,000 Central Pacific Financial Corp. 28,316,418 30,960,000 1,300,000 First Republic Bank 40,949,131 59,540,000 350,000 Frontier Financial Corp. 12,001,297 11,896,500 4,000,000 UCBH Holdings, Inc. 80,006,240 66,160,000 844,500 Western Alliance Bancorporation* 29,067,154 29,371,710 ----------- ----------- 232,028,815 240,759,710 FINANCIAL SERVICES - BROKERAGE & EXCHANGES (3.98%) 1,750,000 International Securities Exchange, Inc., Cl A 49,915,686 66,622,500 4,800,000 Jefferies Group, Inc. 73,517,475 142,224,000 625,000 Thomas Weisel Partners Group, Inc.* 11,910,902 11,881,250 ----------- ----------- 135,344,063 220,727,750 FINANCIAL SERVICES - INSURANCE (1.77%) 1,650,000 Arch Capital Group, Ltd.* 51,045,431 98,109,000 FINANCIAL SERVICES - MISCELLANEOUS (3.84%) 1,000,000 CheckFree Corp.* 18,042,917 49,560,000 1,525,000 National Financial Partners Corp. 81,123,705 67,572,750 1,675,000 The First Marblehead Corp. 49,599,504 95,374,500 ----------- ----------- 148,766,126 212,507,250 FOOD AND AGRICULTURE (1.07%) 1,400,000 Ralcorp Hldgs., Inc.*# 53,671,573 59,542,000 GAMING SERVICES (1.81%) 1,300,000 Scientific Games Corp., Cl A* 32,010,748 46,306,000 1,650,000 Shuffle Master, Inc.* 45,610,427 54,087,000 ----------- ----------- 77,621,175 100,393,000 HEALTHCARE FACILITIES (3.75%) 2,000,000 Community Health Systems, Inc.* 49,858,102 73,500,000 1,800,000 Manor Care, Inc. 33,815,991 84,456,000 1,650,000 United Surgical Partners Intl., Inc.* 23,181,527 49,615,500 ----------- ----------- 106,855,620 207,571,500 HEALTHCARE PRODUCTS (1.85%) 1,950,000 Depomed, Inc.* 11,124,661 11,446,500 2,000,000 Edwards Lifesciences Corp.* 59,602,586 90,860,000 ----------- ----------- 70,727,247 102,306,500 HEALTHCARE SERVICES (3.10%) 1,200,000 Charles River Laboratories Intl., Inc.* 34,776,122 44,160,000 800,000 Gen-Probe, Inc.* 33,725,299 43,184,000 160,000 IDEXX Laboratories, Inc.* 9,006,923 12,020,800 425,000 NightHawk Radiology Holdings, Inc.* 8,532,376 7,624,500 1,525,000 Odyssey HealthCare, Inc.* 17,605,293 26,794,250 1,120,000 PRA International* 26,361,599 24,942,400 400,700 VCA Antech, Inc.* 11,830,115 12,794,351 ----------- ----------- 141,837,727 171,520,301 HEALTHCARE SERVICES - INSURANCE (4.73%) 3,800,000 AMERIGROUP Corp.*# 70,530,101 117,952,000 3,000,000 Centene Corp.*# 27,176,333 70,590,000 1,500,000 WellCare Health Plans, Inc.* 63,788,253 73,575,000 ----------- ----------- 161,494,687 262,117,000
BARON GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- HOTELS AND LODGING (3.09%) 1,000,000 Choice Hotels Intl., Inc. $ 5,706,996 $60,600,000 1,800,000 Four Seasons Hotels, Inc. 71,435,019 110,592,000 ----------- ----------- 77,142,015 171,192,000 MEDIA (1.18%) 575,000 Central European Media Enterprises, Ltd.* 27,899,796 36,334,250 800,000 LIN TV Corp., Cl A* 16,552,864 6,040,000 850,000 Netflix, Inc.* 23,382,313 23,128,500 ----------- ----------- 67,834,973 65,502,750 MEDICAL EQUIPMENT (0.59%) 275,000 Intuitive Surgical, Inc.* 4,029,661 32,441,750 REAL ESTATE (3.40%) 4,950,000 CB Richard Ellis Group, Inc., Cl A* 35,102,586 123,255,000 666,667 CBRE Realty Finance, Inc. 144A@ 10,000,005 10,000,005 925,000 CoStar Group, Inc.* 39,770,736 55,342,750 ----------- ----------- 84,873,327 188,597,755 REAL ESTATE - HOME BUILDING (1.62%) 800,000 Brookfield Homes Corp. 27,646,967 26,360,000 685,000 Hovnanian Enterprises, Inc., Cl A* 16,435,626 20,604,800 400,000 M.D.C. Holdings, Inc. 21,224,611 20,772,000 175,000 Meritage Homes Corp.* 10,493,050 8,268,750 525,000 Standard Pacific Corp. 13,607,953 13,492,500 ----------- ----------- 89,408,207 89,498,050 REAL ESTATE - REITS (0.86%) 75,000 Alexander's, Inc.* 5,683,589 20,382,000 2,429,800 Spirit Finance Corp. 28,350,595 27,359,548 ----------- ----------- 34,034,184 47,741,548 RECREATION AND RESORTS (9.94%) 1,850,000 Ameristar Casinos, Inc. 36,589,852 35,982,500 200,000 Boyd Gaming Corp. 5,345,491 8,072,000 1,500,000 Fontainebleau Resorts, LLC@ 15,000,000 15,000,000 500,000 Gaylord Entertainment Co.* 14,449,466 21,820,000 1,450,000 Isle of Capri Casinos, Inc.* 30,683,260 37,192,500 1,800,000 Kerzner Intl., Ltd.* 49,095,087 142,704,000 300,000 Life Time Fitness, Inc.* 9,895,549 13,881,000 575,000 Penn National Gaming, Inc.* 16,140,523 22,298,500 480,800 Six Flags, Inc.* 3,533,791 2,702,096 1,700,000 Station Casinos, Inc. 39,029,399 115,736,000 1,250,000 Vail Resorts, Inc.* 21,897,070 46,375,000 700,000 Wynn Resorts, Ltd.* 9,057,289 51,310,000 537,677 Wynn Resorts, Ltd.*@ 11,063,956 37,441,138 ----------- ----------- 261,780,733 550,514,734 RESTAURANTS (4.44%) 950,000 California Pizza Kitchen, Inc.* 24,386,635 26,106,000 91,193 Chipotle Mexican Grill, Inc., Cl A* 3,795,605 5,558,213 525,000 Panera Bread Co., Cl A* 16,333,742 35,301,000 700,000 Peet's Coffee & Tea, Inc.*# 15,273,681 21,133,000 1,300,000 P.F. Chang's China Bistro, Inc.* 61,532,458 49,426,000 800,000 Red Robin Gourmet Burgers, Inc.* 45,540,090 34,048,000 2,750,000 The Cheesecake Factory, Inc.* 61,590,781 74,112,500 ----------- ----------- 228,452,992 245,684,713 RETAIL - SPECIALTY STORES (8.81%) 875,000 Blue Nile, Inc.*# 26,058,719 28,140,000 1,200,000 Cabela's, Inc., Cl A* 26,601,533 23,112,000 1,650,000 CarMax, Inc.* 34,948,928 58,509,000 2,500,000 Dick's Sporting Goods, Inc.* 86,074,246 99,000,000 1,350,000 DSW, Inc., Cl A* 33,112,042 49,167,000 935,000 Guitar Center, Inc.* 53,937,552 41,579,450 600,000 J. Crew Group, Inc.* 14,960,137 16,470,000 1,200,000 PETCO Animal Supplies, Inc.* 24,210,542 24,516,000 2,700,000 Select Comfort Corp.*# 38,016,795 62,019,000 625,000 Tractor Supply Co.* 24,758,679 34,543,750 2,400,000 United Auto Group, Inc. 46,739,244 51,240,000 ----------- ----------- 409,418,417 488,296,200
BARON GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- SOFTWARE (0.62%) 950,000 Kronos, Inc.* $25,525,583 $34,399,500 TRANSPORTATION (2.37%) 290,000 American Railcar Industries, Inc. 6,751,155 9,601,900 60,000 Florida East Coast Industries, Inc. 3,320,661 3,139,800 1,863,750 Genesee & Wyoming, Inc., Cl A* 28,652,530 66,107,213 550,000 Landstar System, Inc. 13,610,268 25,976,500 1,050,000 UTI Worldwide, Inc. 24,275,698 26,491,500 ----------- ----------- 76,610,312 131,316,913 UTILITY SERVICES (1.55%) 1,565,000 ITC Holdings Corp. 42,137,404 41,597,700 1,627,498 Southern Union Co. 19,474,277 44,040,096 ----------- ----------- 61,611,681 85,637,796 ----------- ----------- TOTAL COMMON STOCKS 3,674,011,864 5,248,878,650 ------------- ------------- - --------------------------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS (0.14%) - --------------------------------------------------------------------------------------------------- PHARMACEUTICAL 750,000 Reliant Pharmaceuticals LLC Series D*@ 15,000,000 7,500,000 ----------- -----------
Principal Amount - --------------------------------------------------------------------------------------------------- CORPORATE BONDS (1.49%) - --------------------------------------------------------------------------------------------------- RECREATION AND RESORTS $ 26,000,000 Wynn Resorts 6.00% Sub. Conv. Deb. due 07/15/2015 25,471,195 82,784,000 ----------- ----------- - --------------------------------------------------------------------------------------------------- SHORT TERM MONEY MARKET INSTRUMENTS (4.20%) - --------------------------------------------------------------------------------------------------- 4,399,999 Chesham Finance Ltd. 5.29% due 07/03/2006 4,399,999 4,399,999 19,974,100 Citigroup Funding, Inc. 5.19% due 07/05/2006 19,974,100 19,974,100 19,942,222 Citigroup Funding, Inc. 5.22% due 07/10/2006 19,942,222 19,942,222 49,786,667 Citigroup Funding, Inc. 5.14% due 07/12/2006 49,786,667 49,786,667 38,859,760 Ebury Finance LLC 5.33% due 07/05/2006 38,859,760 38,859,760 9,989,655 Ebury Finance LLC 5.33% due 07/06/2006 9,989,655 9,989,655 29,965,200 General Electric Capital Corp. 5.23% due 07/05/2006 29,965,200 29,965,200 49,782,139 HSH Nordbank AG 5.08% due 07/03/2006 49,782,139 49,782,139 9,957,417 PB Finance, Inc. 5.13% due 07/07/2006 9,957,417 9,957,417 ----------- ----------- TOTAL SHORT TERM MONEY MARKET INSTRUMENTS 232,657,159 232,657,159 ----------- ----------- TOTAL INVESTMENTS (100.58%) $3,947,140,218 5,571,819,809 ============== LIABILITIES LESS CASH AND OTHER ASSETS (-0.58%) (32,198,195) ----------- NET ASSETS (EQUIVALENT TO $48.54 PER SHARE BASED ON 114,118,146 SHARES OUTSTANDING) $5,539,621,614 ==============
- --------------- % Represents percentage of net assets @ Restricted and fair valued securities # See note 3 regarding "affiliated investments". * Non-income producing securities See Notes to Schedules of Investments. BARON SMALL CAP FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (96.29%) - ---------------------------------------------------------------------------------------------------- ADVERTISING SERVICES (1.26%) 725,000 R.H. Donnelley Corp.* $26,979,391 $39,200,750 APPAREL (1.10%) 1,300,000 Carter's, Inc.* 21,552,173 34,359,000 BUILDING MATERIALS (3.27%) 2,150,000 Eagle Materials, Inc. (formerly Eagle Materials, Inc. Cl B) 41,913,548 102,125,000 BUSINESS SERVICES (3.48%) 725,000 ChoicePoint, Inc.* 6,949,762 30,283,250 1,650,000 First Advantage Corp., Cl A* 34,451,876 38,379,000 300,000 Infocrossing, Inc.* 2,343,000 3,465,000 975,000 Iron Mountain, Inc.* 10,010,523 36,445,500 ----------- ----------- 53,755,161 108,572,750 COMMUNICATIONS (5.48%) 2,000,000 American Tower Corp., Cl A* 7,561,242 62,240,000 2,750,000 SBA Communications Corp., Cl A* 27,026,676 71,885,000 1,100,000 Time Warner Telecom, Inc., Cl A* 17,503,053 16,335,000 2,000,000 UbiquiTel, Inc.* 7,108,961 20,680,000 ----------- ----------- 59,199,932 171,140,000 CONSULTING (3.07%) 275,000 Corporate Executive Board Co. 4,596,432 27,555,000 1,250,000 LECG Corp.*# 23,984,112 23,087,500 2,000,000 Navigant Consulting, Inc.* 35,521,112 45,300,000 ----------- ----------- 64,101,656 95,942,500 CONSUMER PRODUCTS (2.86%) 2,000,000 ACCO Brands Corp.* 48,493,311 43,800,000 1,625,000 DTS, Inc.*# 34,251,425 31,655,000 700,000 Marvel Entertainment, Inc.* 13,386,290 14,000,000 ----------- ----------- 96,131,026 89,455,000 DISTRIBUTION (2.35%) 1,875,000 Beacon Roofing Supply, Inc.* 48,389,257 41,268,750 600,000 Pool Corp. (formerly known as SCP Pool Corp.) 22,748,022 26,178,000 100,000 Watsco, Inc. 5,625,529 5,982,000 ----------- ----------- 76,762,808 73,428,750 EDUCATION (3.11%) 500,000 Apollo Group, Inc., Cl A* 4,269,664 25,835,000 444,000 Strayer Education, Inc. 37,452,157 43,121,280 1,283,000 Universal Technical Institute, Inc.* 38,250,411 28,251,660 ----------- ----------- 79,972,232 97,207,940 ENERGY SERVICES (3.65%) 2,500,000 Covanta Holding Corp.* 38,709,339 44,125,000 1,850,000 International Coal Group, Inc.* 19,357,068 13,301,500 857,500 PHI, Inc.* 24,669,136 28,469,000 1,000,000 SunPower Corp., Cl A* 29,773,456 28,020,000 ----------- ----------- 112,508,999 113,915,500 ENVIRONMENTAL (0.45%) 805,000 Nalco Holding Co.* 13,628,130 14,192,150 FINANCIAL SERVICES - ASSET MANAGEMENT (0.29%) 250,000 GAMCO Investors, Inc., Cl A 4,356,166 9,190,000 FINANCIAL SERVICES - BANKING (0.35%) 1,500,000 Cash Systems, Inc.*# 10,062,346 10,935,000 FINANCIAL SERVICES - INSURANCE (0.82%) 200,000 Arch Capital Group, Ltd.* 5,515,966 11,892,000 850,000 SeaBright Insurance Holdings, Inc.* 13,779,508 13,693,500 ----------- ----------- 19,295,474 25,585,500
BARON SMALL CAP FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - --------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - --------------------------------------------------------------------------------------------------- FINANCIAL SERVICES - MISCELLANEOUS (0.47%) 700,000 KKR Financial Corp. $17,080,198 $14,567,000 GAMING SERVICES (0.53%) 600,000 WMS Industries, Inc.* 17,406,838 16,434,000 GOVERNMENT SERVICES (4.09%) 1,150,000 DynCorp International, Inc., Cl A* 17,155,875 11,937,000 2,850,000 FLIR Systems, Inc.* 64,339,752 62,871,000 345,000 Identix, Inc.* 2,839,232 2,411,550 600,000 Mantech Intl. Corp., Cl A* 11,308,165 18,516,000 2,120,400 Viisage Technology, Inc.*#+ 37,308,683 32,145,264 ---------- ---------- 132,951,707 127,880,814 HEALTHCARE FACILITIES (5.26%) 1,353,700 American Retirement Corp.* 15,157,651 44,360,749 1,400,000 Brookdale Senior Living, Inc. 34,154,494 62,636,000 1,906,438 United Surgical Partners Intl., Inc.* 24,392,251 57,326,591 ---------- ---------- 73,704,396 164,323,340 HEALTHCARE SERVICES (1.55%) 475,000 Gen-Probe, Inc.* 21,507,724 25,640,500 150,000 NightHawk Radiology Holdings, Inc.* 2,919,760 2,691,000 895,000 PRA International* 21,077,668 19,931,650 ---------- ---------- 45,505,152 48,263,150 HEALTH SERVICES - DEVICES (0.49%) 500,000 Laserscope* 10,906,798 15,405,000 HOTELS AND LODGING (1.09%) 875,000 Orient-Express Hotels, Ltd. 34,071,238 33,985,000 INDUSTRIAL SERVICES (1.02%) 1,000,000 United Rentals, Inc.* 29,677,855 31,980,000 LEISURE (1.30%) 1,550,000 MarineMax, Inc.*# 41,125,552 40,656,500 MACHINERY & ELECTRONICS (1.82%) 1,000,000 Flowserve Corp.* 31,808,128 56,900,000 MANUFACTURING (6.30%) 1,000,000 Actuant Corp., Cl A 37,247,635 49,950,000 553,100 HEICO Corp., Cl A 15,053,856 13,119,532 2,000,000 Hexcel Corp.* 39,833,755 31,420,000 1,250,000 Intermagnetics General Corp.* 24,554,716 33,725,000 1,095,000 Koppers Holdings, Inc.# 16,009,505 21,889,050 1,000,000 Measurement Specialties, Inc.*# 23,936,260 22,270,000 1,016,000 TransDigm Group, Inc.* 23,439,246 24,333,200 ----------- ----------- 180,074,973 196,706,782 MEDIA (1.61%) 1,250,000 CKX, Inc.* 14,102,674 16,962,500 1,350,000 Gray Television, Inc. 10,304,445 7,816,500 2,400,000 Radio One, Inc., Cl D* 27,663,129 17,760,000 380,000 Regal Entertainment Group, Cl A 4,528,833 7,721,600 ----------- ----------- 56,599,081 50,260,600 MEDICAL EQUIPMENT (4.35%) 3,000,000 Immucor, Inc.* 12,479,187 57,690,000 425,000 Intuitive Surgical, Inc.* 6,162,500 50,137,250 950,000 Kensey Nash Corp.*# 27,605,709 28,025,000 ----------- ----------- 46,247,396 135,852,250 MINERALS & MINING (0.31%) 450,000 Novelis, Inc. 10,799,176 9,711,000 PRINTING AND PUBLISHING (0.97%) 1,500,000 Interactive Data Corp. 22,596,628 30,135,000
BARON SMALL CAP FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - ---------------------------------------------------------------------------------------------------- REAL ESTATE (2.39%) 3,000,000 CB Richard Ellis Group, Inc., Cl A* $29,930,480 $74,700,000 REAL ESTATE - HOME BUILDING (2.65%) 1,250,000 Brookfield Homes Corp. 30,392,566 41,187,500 4,500,000 Countrywide plc^ 24,880,619 41,609,250 ----------- ----------- 55,273,185 82,796,750 REAL ESTATE - REITS (1.26%) 3,500,000 Spirit Finance Corp. 41,177,418 39,410,000 RECREATION AND RESORTS (8.96%) 1,400,000 Gaylord Entertainment Co.* 43,928,824 61,096,000 2,430,000 Great Canadian Gaming Corp.*^ 34,433,834 25,512,570 2,750,000 Great Wolf Resorts, Inc.*# 52,151,580 33,027,500 550,000 Kerzner Intl., Ltd.* 13,662,714 43,604,000 1,401,700 Penn National Gaming, Inc.* 40,093,264 54,357,926 850,000 Wynn Resorts, Ltd.* 12,016,631 62,305,000 ----------- ----------- 196,286,847 279,902,996 RESTAURANTS (5.30%) 2,250,000 AFC Enterprises, Inc.*# 36,931,249 28,687,500 350,000 Panera Bread Co., Cl A* 9,869,197 23,534,000 990,000 P.F. Chang's China Bistro, Inc.* 50,496,635 37,639,800 3,000,000 Texas Roadhouse, Inc., Cl A* 38,035,045 40,560,000 1,300,000 The Cheesecake Factory, Inc.* 29,841,371 35,035,000 ----------- ----------- 165,173,497 165,456,300 RETAIL - CONSUMER STAPLES (2.17%) 2,300,000 Iconix Brand Group, Inc.*# 37,384,134 37,582,000 1,250,000 NuCO2, Inc.*# 30,876,487 30,050,000 ----------- ----------- 68,260,621 67,632,000 RETAIL - SPECIALTY STORES (8.11%) 700,000 99 Cents Only Stores* 8,091,122 7,322,000 1,157,503 Casual Male Retail Group, Inc.*# 5,361,112 11,632,905 675,000 Design Within Reach, Inc.* 9,586,918 4,617,000 1,500,000 DSW, Inc., Cl A* 36,083,956 54,630,000 1,000,000 Fossil, Inc.* 20,249,122 18,010,000 750,000 Guitar Center, Inc.* 36,791,851 33,352,500 300,000 J. Crew Group, Inc.* 7,005,581 8,235,000 2,800,000 Quiksilver, Inc.* 22,061,546 34,104,000 700,000 Tractor Supply Co.* 24,635,320 38,689,000 2,000,000 United Auto Group, Inc. 38,475,185 42,700,000 ----------- ----------- 208,341,713 253,292,405 TRANSPORTATION (2.75%) 400,000 American Commercial Lines, Inc.* 10,772,593 24,100,000 305,200 Florida East Coast Industries, Inc. 17,085,312 15,971,116 600,000 Grupo Aeroportuario Del Sureste SA de CV 17,867,166 20,154,000 1,400,000 JetBlue Airways Corp.* 17,977,169 16,996,000 884,200 WestJet Airlines, Ltd.*^ 6,768,443 8,681,164 ----------- ----------- 70,470,683 85,902,280 ----------- ----------- TOTAL COMMON STOCKS 2,265,688,602 3,007,403,007 ------------- -------------
Shares Cost Value - ----------------------------------------------------------------------------------------------------- WARRANTS (0.26%) - ----------------------------------------------------------------------------------------------------- BUSINESS SERVICES (0.03%) 222,575 Infocrossing, Inc. Warrants Exp 10/16/2008*@ $ 31,784 $ 821,302 RETAIL - SPECIALTY STORES (0.23%) 1,407,353 Casual Male Retail Group, Inc. Warrants Exp 04/26/2007*@# 2,117,151 6,638,647 100,000 Casual Male Retail Group, Inc. Warrants Exp 07/02/2010*@# 49,000 529,000 ----------- ----------- 2,166,151 7,167,647 ----------- ----------- TOTAL WARRANTS 2,197,935 7,988,949 ----------- ----------- Principal Amount - ---------------------------------------------------------------------------------------------------- SHORT TERM MONEY MARKET INSTRUMENTS (3.18%) - ---------------------------------------------------------------------------------------------------- $ 6,300,000 Chesham Finance Ltd. 5.29% due 07/03/2006 6,300,000 6,300,000 3,000,000 Chesham Finance Ltd. 5.29% due 07/03/2006** 3,000,000 3,000,000 19,974,100 Citigroup Funding, Inc. 5.19% due 07/05/2006 19,974,100 19,974,100 20,014,072 Citigroup Funding, Inc. 5.15% due 07/13/2006 20,014,072 20,014,072 19,979,311 Ebury Finance LLC 5.33% due 07/05/2006 19,979,311 19,979,311 9,989,656 Ebury Finance LLC 5.33% due 07/06/2006 9,989,656 9,989,656 9,995,608 Ecolab, Inc. 5.27% due 07/03/2006 9,995,608 9,995,608 9,988,400 General Electric Capital Corp. 5.23% due 07/05/2006 9,988,400 9,988,400 ----------- ----------- TOTAL INSTRUMENTS SHORT TERM MONEY MARKET 99,241,147 99,241,147 ----------- ----------- TOTAL INVESTMENTS (99.73%) $2,367,127,684 3,114,633,103 ============== CASH AND OTHER ASSETS LESS LIABILITIES (0.27%) 8,543,362 ----------- NET ASSETS (EQUIVALENT TO $23.88 PER SHARE BASED ON 130,788,365 SHARES OUTSTANDING) $3,123,176,465 ==============
- --------------- % Represents percentage of net assets @ Restricted and fair valued securities # See Note 3 regarding "affiliated investments". ^ Foreign domiciled corporation + Represents security, or a portion thereof, on loan as of June 30, 2006. ** Investment from cash collateral received for loaned security. * Non-income producing securities See Notes to Schedules of Investments. BARON iOPPORTUNITY FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - -------------------------------------------------------------------------------------------------- COMMON STOCKS (91.06%) - -------------------------------------------------------------------------------------------------- ADVERTISING SERVICES (9.22%) 110,000 aQuantive, Inc.* $2,367,059 $2,786,300 105,000 Digitas, Inc.* 901,114 1,220,100 65,000 Getty Images, Inc.* 1,735,909 4,128,150 13,500 Google, Inc., Cl A* 2,160,607 5,660,955 --------- --------- 7,164,689 13,795,505 BUSINESS SERVICES (3.96%) 50,000 ChoicePoint, Inc.* 1,469,626 2,088,500 90,000 Monster Worldwide, Inc.* 998,258 3,839,400 --------- --------- 2,467,884 5,927,900 COMMUNICATIONS (21.79%) 105,000 American Tower Corp., Cl A* 422,716 3,267,600 179,100 Cogent Communications Group, Inc.* 1,640,130 1,678,167 100,000 Equinix, Inc.* 3,144,731 5,486,000 60,000 NeuStar, Inc., Cl A* 1,859,719 2,025,000 75,000 NTELOS Holdings Corp.* 1,033,003 1,083,750 54,000 Research in Motion, Ltd.* 4,514,734 3,767,580 115,000 SBA Communications Corp., Cl A* 1,290,179 3,006,100 155,000 Sprint Nextel Corp. 3,513,034 3,098,450 620,000 Terremark Worldwide, Inc.* 3,674,767 2,232,000 140,000 Time Warner Telecom, Inc., Cl A* 2,349,147 2,079,000 250,000 UbiquiTel, Inc.* 1,504,139 2,585,000 75,000 VeriFone Holdings, Inc.* 1,624,149 2,286,000 --------- --------- 26,570,448 32,594,647 COMMUNICATIONS EQUIPMENT (2.12%) 79,000 QUALCOMM, Inc. 2,983,090 3,165,530 COMPUTER TECHNOLOGY (3.44%) 90,000 Apple Computer, Inc.* 5,425,199 5,140,800 CONSUMER SERVICES (4.77%) 136,000 eBay, Inc.* 3,207,636 3,983,440 65,000 priceline.com, Inc.* 1,345,503 1,940,900 40,000 Travelzoo, Inc.* 737,778 1,213,600 --------- --------- 5,290,917 7,137,940 ENERGY SERVICES (0.51%) 37,500 Medis Technologies, Ltd.* 897,702 760,500 ENTERPRISE HARDWARE (6.59%) 150,000 Dell, Inc.* 4,260,994 3,661,500 150,000 Intel Corp. 3,604,990 2,842,500 85,000 Rackable Systems, Inc.* 2,664,407 3,356,650 --------- --------- 10,530,391 9,860,650 FINANCIAL SERVICES - BROKERAGE & EXCHANGES (13.28%) 350,000 Charles Schwab Corp. 3,888,938 5,593,000 10,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 1,829,806 4,911,500 230,000 E*TRADE Financial Corp.* 1,557,926 5,248,600 102,000 optionsXpress Holdings, Inc. 2,092,858 2,377,620 137,500 TradeStation Group, Inc.* 1,357,472 1,742,125 ---------- ---------- 10,727,000 19,872,845 FINANCIAL SERVICES - INSURANCE (0.83%) 108,000 Admiral Group plc^ 1,189,310 1,240,294 GAMING SERVICES (1.49%) 62,500 Scientific Games Corp., Cl A* 2,175,815 2,226,250
BARON iOPPORTUNITY FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - -------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - -------------------------------------------------------------------------------------------------- LEISURE (3.14%) 120,000 Activision, Inc.* $1,653,134 $1,365,600 77,500 Electronic Arts, Inc.* 4,152,637 3,335,600 --------- --------- 5,805,771 4,701,200 MEDIA (11.58%) 30,000 Central European Media Enterprises, Ltd.* 2,110,846 1,895,700 123,800 Comcast Corp., Cl A* 3,030,649 4,058,164 82,000 Netflix, Inc.* 2,438,297 2,231,220 170,000 News Corp., Cl A 2,983,988 3,260,600 101,500 Time Warner, Inc. 1,480,641 1,755,950 125,000 Yahoo! Inc.* 2,517,483 4,125,000 ---------- ---------- 14,561,904 17,326,634 REAL ESTATE (5.59%) 72,500 CoStar Group, Inc.* 2,838,780 4,337,675 735,000 Move, Inc.* (formerly homestore, Inc.) 2,107,236 4,027,800 --------- --------- 4,946,016 8,365,475 RETAIL - SPECIALTY STORES (2.75%) 75,000 Best Buy Co., Inc. 3,425,600 4,113,000 --------- --------- TOTAL COMMON STOCKS 104,161,736 136,229,170 ----------- ----------- - -------------------------------------------------------------------------------------------------- WARRANTS (0.00%) - -------------------------------------------------------------------------------------------------- MEDIA 20,000 Loudeye Corp. Warrants Exp 12/23/2010*@ 0 0 --------- --------- Principal Amount - -------------------------------------------------------------------------------------------------- SHORT TERM MONEY MARKET INSTRUMENTS (9.06%) - -------------------------------------------------------------------------------------------------- $ 8,560,000 Chesham Finance Ltd. 5.29% due 07/03/2006 8,560,000 8,560,000 4,997,804 Ecolab, Inc. 5.27% due 07/03/2006 4,997,804 4,997,804 --------- --------- TOTAL SHORT TERM MONEY MARKET INSTRUMENTS 13,557,804 13,557,804 ---------- ---------- TOTAL INVESTMENTS (100.12%) $117,719,540 149,786,974 ============ LIABILITIES LESS CASH AND OTHER ASSETS (-0.12%) (183,487) --------- NET ASSETS (EQUIVALENT TO $9.80 PER SHARE BASED ON 15,258,462 SHARES OUTSTANDING) $149,603,487 ============
- --------------- % Represents percentage of net assets * Non-income producing securities @ Restricted and fair valued securities ^ Foreign domiciled corporation See Notes to Schedules of Investments. BARON FIFTH AVENUE GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - ---------------------------------------------------------------------------------------------------- COMMON STOCKS (99.60%) - ---------------------------------------------------------------------------------------------------- ADVERTISING SERVICES (2.09%) 16,000 Getty Images, Inc.* $ 1,045,922 $ 1,016,160 4,000 Google, Inc., Cl A* 480,476 1,677,320 ----------- ----------- 1,526,398 2,693,480 BUSINESS SERVICES (5.34%) 43,000 Automatic Data Processing, Inc. 1,911,394 1,950,050 60,000 ChoicePoint, Inc.* 2,718,600 2,506,200 65,000 Iron Mountain, Inc.* 2,044,769 2,429,700 ----------- ----------- 6,674,763 6,885,950 COMMUNICATIONS (2.76%) 85,000 American Tower Corp., Cl A* 2,000,626 2,645,200 13,000 Research in Motion, Ltd. 1,092,836 907,010 ----------- ----------- 3,093,462 3,552,210 COMMUNICATIONS EQUIPMENT (1.40%) 45,000 QUALCOMM, Inc. 1,763,592 1,803,150 COMPUTER TECHNOLOGY (3.94%) 55,000 Apple Computer, Inc.* 3,100,892 3,141,600 83,000 Microsoft Corp. 1,815,658 1,933,900 ----------- ----------- 4,916,550 5,075,500 CONSULTING (0.63%) 15,000 Moody's Corp. 653,419 816,900 CONSUMER PRODUCTS (10.72%) 21,000 Anheuser-Busch Companies, Inc. 965,623 957,390 34,000 Cadbury Schweppes plc 1,279,719 1,319,880 44,000 Diageo plc 2,959,386 2,972,200 25,000 Nike, Inc., Cl B 2,109,692 2,025,000 45,000 PepsiCo, Inc. 2,688,677 2,701,800 69,000 The Procter & Gamble Co. 3,793,762 3,836,400 ----------- ----------- 13,796,859 13,812,670 CONSUMER SERVICES (1.39%) 61,000 eBay, Inc.* 2,500,884 1,786,690 DISTRIBUTION (0.84%) 27,000 Fastenal Co. 1,156,248 1,087,830 ENERGY SERVICES (7.16%) 33,000 Diamond Offshore Drilling, Inc. 2,903,571 2,769,690 20,000 Kinder Morgan, Inc. 1,361,698 1,997,800 39,000 Transocean, Inc.* 3,194,566 3,132,480 30,000 XTO Energy, Inc. 591,818 1,328,100 ----------- ----------- 8,051,653 9,228,070 FINANCIAL SERVICES - ASSET MANAGEMENT (3.12%) 43,000 AllianceBernstein Holding L.P. 2,643,735 2,629,020 14,000 Legg Mason, Inc. 1,663,655 1,393,280 ----------- ----------- 4,307,390 4,022,300 FINANCIAL SERVICES - BANKING (0.79%) 13,000 Zions Bancorporation 903,403 1,013,220 FINANCIAL SERVICES - BROKERAGE & EXCHANGES (8.86%) 17,000 Bear Stearns Companies, Inc. 2,216,928 2,381,360 240,000 Charles Schwab Corp. 3,116,248 3,835,200 6,000 Chicago Mercantile Exchange Holdings, Inc., Cl A 1,499,604 2,946,900 15,000 The Goldman Sachs Group, Inc. 2,198,393 2,256,450 ----------- ----------- 9,031,173 11,419,910 FINANCIAL SERVICES - INSURANCE (1.73%) 10 Berkshire Hathaway, Inc., Cl A* 901,365 916,590 38,500 W. R. Berkley Corp. 947,091 1,314,005 ----------- ----------- 1,848,456 2,230,595 FINANCIAL SERVICES - MISCELLANEOUS (3.80%) 92,000 American Express Co. 4,839,699 4,896,240 HEALTHCARE PRODUCTS (1.10%) 25,000 Zimmer Holdings, Inc.* 1,710,020 1,418,000
BARON FIFTH AVENUE GROWTH FUND - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED)
Shares Cost Value - -------------------------------------------------------------------------------------------------- COMMON STOCKS (cont'd) - -------------------------------------------------------------------------------------------------- HEALTHCARE SERVICES (2.85%) 35,000 Laboratory Corp. of America Holdings* $1,935,488 $2,178,050 25,000 Quest Diagnostics, Inc. 1,376,060 1,498,000 --------- --------- 3,311,548 3,676,050 HEALTHCARE SERVICES - INSURANCE (4.61%) 45,000 UnitedHealth Group, Inc. 1,736,487 2,015,100 54,000 WellPoint, Inc.* 3,492,683 3,929,580 --------- --------- 5,229,170 5,944,680 LEISURE (0.60%) 18,000 Electronic Arts, Inc.* 1,037,679 774,720 MEDIA (7.98%) 21,000 Lamar Advertising Co., Cl A* 1,173,781 1,131,060 150,000 News Corp., Cl A 2,465,892 2,877,000 140,000 Walt Disney Co. 3,622,190 4,200,000 63,000 Yahoo! Inc.* 1,854,802 2,079,000 --------- --------- 9,116,665 10,287,060 PHARMACEUTICAL (2.33%) 50,000 Johnson & Johnson 3,022,872 2,996,000 REAL ESTATE SERVICES (1.45%) 75,000 CB Richard Ellis Group, Inc., Cl A* 1,896,254 1,867,500 REAL ESTATE - REITS (2.04%) 27,000 Vornado Realty Trust 1,784,411 2,633,850 RECREATION AND RESORTS (8.45%) 30,000 Boyd Gaming Corp. 1,497,429 1,210,800 65,000 Las Vegas Sands Corp.* 2,297,878 5,060,900 73,000 Marriott International, Inc., Cl A 2,299,204 2,782,760 25,000 Wynn Resorts, Ltd.* 1,823,593 1,832,500 --------- --------- 7,918,104 10,886,960 RESTAURANTS (1.17%) 40,000 Starbucks Corp.* 928,761 1,510,400 RETAIL - CONSUMER STAPLES (8.41%) 25,000 Costco Wholesale Corp. 1,005,075 1,428,250 55,000 CVS Corp. 1,435,268 1,688,500 41,000 Target Corp. 1,954,582 2,003,670 65,000 Wal-Mart Stores, Inc. 3,190,978 3,131,050 40,000 Whole Foods Market, Inc. 2,526,676 2,585,600 --------- --------- 10,112,579 10,837,070 RETAIL - SPECIALTY STORES (4.04%) 40,000 Bed Bath & Beyond, Inc.* 1,464,649 1,326,800 25,000 Best Buy Co., Inc. 877,204 1,371,000 62,000 Coach, Inc.* 1,481,769 1,853,800 20,000 Tiffany & Co. 658,156 660,400 --------- --------- 4,481,778 5,212,000 --------- --------- TOTAL COMMON STOCKS 115,613,790 128,369,005 ----------- ----------- Principal Amount - -------------------------------------------------------------------------------------------------- SHORT TERM MONEY MARKET INSTRUMENTS (0.85%) - -------------------------------------------------------------------------------------------------- $ 1,100,000 Chesham Finance, Ltd. 5.29% due 07/03/2006 1,100,000 1,100,000 --------- --------- TOTAL INVESTMENTS (100.45%) $116,713,790 129,469,005 ============ LIABILITIES LESS CASH AND OTHER ASSETS (-0.45%) (580,911) --------- NET ASSETS (EQUIVALENT TO $11.87 PER SHARE BASED ON 10,855,879 SHARES OUTSTANDING) $128,888,094 ============
- ---------------- % Represents percentage of net assets * Non-income producing securities See Notes to Schedules of Investments. NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) Baron Investment Funds Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company established as a Massachusetts business trust on February 19, 1987. The Trust currently offers five series (individually a "Fund" and collectively the "Funds"): Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron iOpportunity Fund, and Baron Fifth Avenue Growth Fund. Prior to October 22, 2004, the name of the Trust was Baron Asset Fund. (1) SECURITY VALUATION. Portfolio securities traded on any national stock exchange are valued based on the last sale price. For securities traded on NASDAQ, the Funds use 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 Funds are 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 a current price is stale, there is recent news, 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 Funds 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 Funds with a remaining maturity of sixty days or less are valued at amortized cost, which approximates value (2) COST OF INVESTMENTS FOR INCOME TAX PURPOSES. At June 30, 2006 the net realized appreciation (depreciation) based on the cost of investments for income tax purposes was as follows:
BARON ASSET BARON GROWTH BARON SMALL CAP BARON iOPPORTUNITY FIFTH AVENUE GROWTH FUND FUND FUND FUND FUND ---- ---- ---- ---- ---- Cost of investments $ 1,806,911,866 $ 3,969,140,006 $ 2,367,389,135 $ 120,386,063 $ 116,745,896 ================ ================ ================ =================== ===================== Unrealized appreciation 1,508,054,003 1,756,935,028 918,510,168 37,749,817 16,487,568 Unrealized depreciation (53,847,720) (154,255,225) (171,266,200) (8,348,906) (3,764,459) ---------------- ---------------- ---------------- ------------------- --------------------- Net unrealized appreciation $ 1,454,206,283 $ 1,602,679,803 $ 747,243,968 $ 29,400,911 $ 12,723,109 ================ ================ ================ =================== =====================
3) INVESTMENT IN "AFFILIATES"*
BARON ASSET FUND - ---------------- Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sept. 30, 2005 and Additions Reductions Jun. 30, 2006 Jun. 30, 2006 - -------------------------------------------------------------------------------------------------------------------------------- Alexander's, Inc. 314,000 314,000 $85,332,640 Apollo International, Inc. S-A CV Pfd. 105,264 105,264 400,000 ChoicePoint, Inc. 4,500,000 310,000 4,190,000 ** Kerzner Intl., Ltd. 2,400,000 2,400,000 190,272,000 Vail Resorts, Inc. 3,000,000 3,000,000 111,300,000 --------------- TOTAL INVESTMENT IN "AFFILIATES" $387,304,640 (11.8% OF NET ASSETS) ===============
* Affiliated investments, as defined in the Investment Company Act of 1940, are issuers in which a Fund held 5% or more of the outstanding voting securities during the period October 1, 2005 to June 30, 2006. **As of June 30, 2006, no longer an affiliated investment. - -------------------------------------------------------------------------------- INVESTMENT IN "AFFILIATES"*
BARON GROWTH FUND - ----------------- Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sept. 30, 2005 and Additions Reductions Jun. 30, 2006 Jun. 30, 2006 - -------------------------------------------------------------------------------------------------------------------------------- AMERIGROUP, Corp. 3,800,000 3,800,000 $117,952,000 Blue Nile, Inc. 875,000 875,000 28,140,000 Carter's, Inc.^ 1,450,000 1,450,000 2,900,000 ** Centene Corp. 3,199,500 199,500 3,000,000 70,590,000 Center Financial Corp. 850,000 850,000 20,094,000 DeVry, Inc. 3,700,000 3,700,000 81,289,000 Encore Acquisition Co. 3,700,000 3,700,000 99,271,000 Peet's Coffee & Tea, Inc. 600,000 100,000 700,000 21,133,000 Ralcorp Hldgs., Cl A 1,300,000 100,000 1,400,000 59,542,000 Select Comfort Corp.++ 1,800,000 900,000 2,700,000 62,019,000 --------------- TOTAL INVESTMENT IN "AFFILIATES" $560,030,000 (10.1% OF NET ASSETS) ===============
^ Received 1,450,000 shares from 2:1 stock spiit. ++ Received 900,000 shares from 3:2 stock split. * Affiliated investments, as defined in the Investment Company Act of 1940, are issuers in which a Fund held 5% or more of the outstanding voting securities during the period October 1, 2005 to June 30, 2006. **As of June 30, 2006, no longer an affiliated investment. - -------------------------------------------------------------------------------- INVESTMENT IN "AFFILIATES"*
BARON SMALL CAP FUND - -------------------- Balance of Gross Gross Sales Balance of Shares Held on Purchases and Shares Held on Value NAME OF ISSUER Sept. 30, 2005 and Additions Reductions Jun. 30, 2006 Jun. 30, 2006 - ----------------------------------------------------------------------------------------------------------------------------------- AFC Enterprises, Inc. 1,850,000 400,000 2,250,000 $28,687,500 Cash Systems, Inc. 1,500,000 1,500,000 10,935,000 Casual Male Retail Group, Inc. 1,157,503 1,157,503 11,632,905 Casual Male Retail Group, Inc., Warrants Exp 04/26/2007 1,407,353 1,407,353 6,638,647 Casual Male Retail Group, Inc., Warrants Exp 07/02/2010 100,000 100,000 529,000 Design Within Reach, Inc. 1,100,000 75,000 500,000 675,000 ** DTS, Inc. 1,625,000 1,625,000 31,655,000 Eagle Materials, Inc. (formerly Eagle Materials, Inc., Cl B) + 1,000,000 2,000,000 850,000 2,150,000 ** Eagle Materials, Inc. 45,600 45,600 - ** Great Wolf Resorts, Inc. 2,500,000 250,000 2,750,000 33,027,500 Iconix Brand Group, Inc. - 2,300,000 2,300,000 37,582,000 Immucor, Inc. (o) 2,500,000 1,000,000 500,000 3,000,000 ** Infocrossing, Inc. 1,082,000 782,000 300,000 ** Infocrossing, Inc., Warrants Exp 10/16/2008 222,575 222,575 ** Kensey Nash Corp. 941,600 108,400 100,000 950,000 28,025,000 Koppers Holdings, Inc. - 1,095,000 1,095,000 21,889,050 LECG Corp. 1,650,000 400,000 1,250,000 23,087,500 MarineMax, Inc. 1,500,000 50,000 1,550,000 40,656,500 Measurement Specialties, Inc. 1,100,000 100,000 1,000,000 22,270,000 NuCO2, Inc. 1,127,364 122,636 1,250,000 30,050,000 Viisage Technology, Inc. - 2,120,400 2,120,400 32,145,264 --------------- TOTAL INVESTMENT IN "AFFILIATES" $358,810,866 (11.5% OF NET ASSETS) ==============
+ Received 2,000,000 shares from 3:1 stock split. (o) Received 1,000,000 shares from 3:2 stock split. * Affiliated investments, as defined in the Investment Company Act of 1940, are issuers in which a Fund held 5% or more of the outstanding voting securities during the period October 1, 2005 to June 30, 2006. ** As of June 30, 2006, no longer an affiliated investment. - -------------------------------------------------------------------------------- For additional information regarding the Funds' other significant accounting policies, please refer to the Funds' 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 are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (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. 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 18, 2006 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 18, 2006 EX-99.CERT 2 nqcertifications0606.txt N-Q CERTIFICATIONS I, RONALD BARON, certify that: 1. I have reviewed this report on Form N-Q of Baron Investment Funds Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within in those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 18, 2006 /s/ Ronald Baron ---------------- Ronald Baron President and Chief Executive Officer I, PEGGY WONG, certify that: 1. I have reviewed this report on Form N-Q of Baron Investment Funds Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within in those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 18, 2006 /s/ Peggy Wong ---------------- Peggy Wong Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----