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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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)

Patrick M. Patalino, Esq.

c/o Baron Investment Funds Trust

767 Fifth Avenue, 49th Floor,

New York, 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: December 31, 2010

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 FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.

SEC 2455 (8-05)

Item 1. Schedule of Investments

Baron Asset Fund

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (98.35%)
	Consumer Discretionary (24.58%)
		Advertising (1.40%)
	1,025,000	Lamar Advertising Co., Cl A1	$	53,133,779	$	40,836,000
		Apparel Retail (1.23%)
	1,000,000	Urban Outfitters, Inc.1		17,391,964		35,810,000
		Apparel, Accessories & Luxury Goods (3.33%)
	875,000	Polo Ralph Lauren Corp., Cl A		17,007,094		97,055,000
		Auto Parts & Equipment (0.19%)
	75,000	BorgWarner, Inc.1		4,227,642		5,427,000
		Automotive Retail (0.55%)
	500,000	CarMax, Inc.1		5,701,415		15,940,000
		Broadcasting (1.58%)
	1,100,000	Discovery Communications, Inc., Cl A1		29,767,574		45,870,000
		Casinos & Gaming (1.87%)
	525,000	Wynn Resorts, Ltd.		1,743,976		54,516,000
		Education Services (2.39%)
	1,450,000	DeVry, Inc.		15,178,463		69,571,000
		Hotels, Resorts & Cruise Lines (2.45%)
	850,000	Choice Hotels  International, Inc.		4,185,563		32,529,500
	850,000	Hyatt Hotels Corp., Cl A1		24,084,647		38,896,000
				28,270,210		71,425,500
		Household Appliances (0.46%)
	200,000	Stanley Black & Decker, Inc.		11,721,438		13,374,000
		Internet Retail (2.07%)
	650,000	Expedia, Inc.		18,495,801		16,308,500
	110,000	priceline.com, Inc.1		17,910,917		43,950,500
				36,406,718		60,259,000
		Leisure Facilities (3.21%)
	1,799,200	Vail Resorts, Inc.1,5		35,613,086		93,630,368
		Specialty Stores (3.85%)
	1,250,000	Dick’s Sporting Goods, Inc.1		35,113,986		46,875,000
	1,050,000	Tiffany & Co.		33,710,690		65,383,500
				68,824,676		112,258,500
	Total Consumer Discretionary			324,988,035		715,972,368
	Energy (9.61%)
		Oil & Gas Drilling (1.29%)
	775,000	Helmerich & Payne, Inc.		23,964,498		37,572,000
		Oil & Gas Equipment & Services (2.30%)
	440,000	Core Laboratories N.V.2		30,622,516		39,182,000
	275,000	SEACOR Holdings, Inc.1		7,751,166		27,799,750
				38,373,682		66,981,750
		Oil & Gas Exploration & Production (4.53%)
	489,500	Concho Resources, Inc.1		22,879,901		42,914,465
	300,000	SM Energy Co.		17,440,278		17,679,000
	575,200	Ultra Petroleum Corp.1,2		24,843,913		27,477,304
	375,000	Whiting Petroleum Corp.1		26,220,923		43,946,250
				91,385,015		132,017,019
		Oil & Gas Storage & Transportation (1.49%)
	1,800,000	Southern Union Co.		21,856,637		43,326,000
	Total Energy			175,579,832		279,896,769

Shares			Cost		Value
	Common Stocks (continued)
	Financials (16.41%)
		Asset Management & Custody Banks (3.67%)
	1,725,000	Eaton Vance Corp.	$	41,892,148	$	52,146,750
	850,000	T. Rowe Price Group, Inc.		23,450,029		54,859,000
				65,342,177		107,005,750
		Insurance Brokers (0.82%)
	1,000,000	Brown & Brown, Inc.		19,454,527		23,940,000
		Investment Banking & Brokerage (3.58%)
	6,100,000	Charles Schwab Corp.		12,035,911		104,371,000
		Office REITs (1.93%)
	136,000	Alexander’s, Inc.4		7,399,400		56,070,080
		Real Estate Services (0.99%)
	1,400,000	CB Richard Ellis Group, Inc., Cl A1		16,141,029		28,672,000
		Regional Banks (0.45%)
	450,000	First Republic Bank1		11,878,902		13,104,000
		Reinsurance (2.24%)
	741,526	Arch Capital Group, Ltd.1,2		24,681,400		65,291,365
		Specialized Finance (2.73%)
	90,000	CME Group, Inc., Cl A		6,209,144		28,957,500
	1,300,000	MSCI, Inc., Cl A1		39,123,416		50,648,000
				45,332,560		79,605,500
	Total Financials			202,265,906		478,059,695
	Health Care (13.54%)
		Health Care Distributors (1.48%)
	700,000	Henry Schein, Inc.1		19,695,528		42,973,000
		Health Care Equipment (4.57%)
	1,300,000	IDEXX Laboratories, Inc.1		53,002,192		89,986,000
	85,000	Intuitive Surgical, Inc.1		12,819,285		21,908,750
	165,000	Sonova Holding AG (Switzerland)2,6		20,548,935		21,269,562
				86,370,412		133,164,312
		Health Care Facilities (1.73%)
	1,350,000	Community Health Systems, Inc.1		40,200,024		50,449,500
		Health Care Supplies (0.45%)
	225,000	Gen-Probe, Inc.1,4		9,743,640		13,128,750
		Health Care Technology (0.57%)
	175,000	Cerner Corp.1		15,678,453		16,579,500
		Life Sciences Tools & Services (4.74%)
	700,000	Life Technologies Corp.1		36,212,832		38,850,000
	400,000	Mettler-Toledo International, Inc.1		26,298,875		60,484,000
	700,000	Thermo Fisher Scientific, Inc.1		20,053,400		38,752,000
				82,565,107		138,086,000
	Total Health Care			254,253,164		394,381,062
	Industrials (17.34%)
		Air Freight & Logistics (5.53%)
	1,225,000	C. H. Robinson Worldwide, Inc.		22,584,238		98,232,750
	1,150,000	Expeditors International of Washington, Inc.		29,708,325		62,790,000
				52,292,563		161,022,750
		Diversified Support Services (1.84%)
	475,000	Copart, Inc.1		16,156,139		17,741,250
	1,550,000	Ritchie Bros. Auctioneers, Inc.2		38,130,924		35,727,500
				54,287,063		53,468,750
		Environmental & Facilities Services (2.36%)
	850,000	Stericycle, Inc.1		24,924,606		68,782,000

See Notes to Schedules of Investments.

Baron Asset Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (continued)
	Industrials (continued)
		Human Resource & Employment Services (1.05%)
	1,000,000	Robert Half International, Inc.	$	972,552	$	30,600,000
		Research & Consulting Services (2.90%)
	125,000	Dun & Bradstreet Corp.		9,449,322		10,261,250
	650,000	Equifax, Inc.		21,482,511		23,140,000
	1,500,000	Verisk Analytics, Inc., Cl A1		39,224,920		51,120,000
				70,156,753		84,521,250
		Trading Companies & Distributors (3.66%)
	1,375,000	Fastenal Co.		54,825,096		82,376,250
	375,000	MSC Industrial Direct Co., Inc., Cl A		17,281,031		24,258,750
				72,106,127		106,635,000
	Total Industrials			274,739,664		505,029,750
	Information Technology (12.41%)
		Application Software (5.23%)
	800,000	ANSYS, Inc.1		26,291,691		41,656,000
	350,000	Citrix Systems, Inc.1		13,746,569		23,943,500
	925,000	FactSet Research Systems, Inc.		53,842,905		86,728,000
				93,881,165		152,327,500
		Communications Equipment (0.53%)
	400,000	Polycom, Inc.1		15,942,175		15,592,000
		Data Processing & Outsourced Services (0.29%)
	450,000	Western Union Co.		8,189,836		8,356,500
		Electronic Equipment & Instruments (0.87%)
	850,000	FLIR Systems, Inc.1		18,928,164		25,287,500
		IT Consulting & Other Services (5.49%)
	400,000	Booz Allen Hamilton Holding Corp.1		7,078,961		7,772,000
	700,000	Equinix, Inc.1,4		56,983,955		56,882,000
	2,875,000	Gartner, Inc.1		68,065,780		95,450,000
				132,128,696		160,104,000
	Total Information Technology			269,070,036		361,667,500
	Materials (0.61%)
		Specialty Chemicals (0.61%)
	350,000	Ecolab, Inc.		10,740,484		17,647,000
	Telecommunication Services (3.85%)
		Wireless Telecommunication Services (3.85%)
	1,025,000	NII Holdings, Inc.1		39,262,199		45,776,500
	1,625,000	SBA Communications Corp., Cl A1		53,434,220		66,527,500
	Total Telecommunication Services			92,696,419		112,304,000
	TOTAL COMMON STOCKS			1,604,333,540		2,864,958,144

Shares		Cost		Value
Private Equity Investments (1.09%)
Consumer Discretionary (0.36%)
	Hotels, Resorts & Cruise Lines (0.36%)
5,200,000	Kerzner International Holdings, Ltd., Cl A1,2,3,4,7	$	52,000,000	$	10,400,000
Financials (0.73%)
	Asset Management & Custody Banks (0.73%)
5,600,004	Windy City Investments Holdings LLC1,3,4,7		31,960,710		21,280,013
TOTAL PRIVATE EQUITY INVESTMENTS			83,960,710		31,680,013
Principal Amount
Short Term Investments (1.08%)
$31,641,780	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 1/03/2011; Proceeds at maturity – $31,641,886; (Fully collateralized by U.S. Treasury Note, 1.25% due 10/31/2015; Market value – $33,228,125)6		31,641,780		31,641,780
TOTAL INVESTMENTS (100.52%)		$	1,719,936,030		2,928,279,937
LIABILITIES LESS CASH AND OTHER ASSETS (-0.52%)					(15,216,013	)
NET ASSETS				$	2,913,063,924
RETAIL SHARES (Equivalent to $55.27 per share based on 47,341,689 shares outstanding)				$	2,616,734,762
INSTITUTIONAL SHARES (Equivalent to $55.50 per share based on 5,339,582 shares outstanding)				$	296,329,162

% Represents percentage of net assets.

¹ Non-income producing securities.

² Foreign corporation.

³ At December 31, 2010, the market value of restricted and fair valued securities amounted to $31,680,013 or 1.09% of net assets. None of these securities are deemed liquid. See Note 5 regarding restricted securities.

⁴ The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

⁵ See Note 6 regarding “Affiliated” companies.

⁶ Level 2 security. See Note 3 regarding Fair Value Measurements.

⁷ Level 3 security. See Note 3 regarding Fair Value Measurements.

See Notes to Schedules of Investments.

Baron Growth Fund

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (96.09%)
	Consumer Discretionary (24.47%)
		Advertising (0.35%)
	550,000	Lamar Advertising Co., Cl A1	$	6,775,796	$	21,912,000
		Apparel Retail (0.78%)
	1,142,637	J. Crew Group, Inc.1		27,329,424		49,293,360
		Apparel, Accessories & Luxury Goods (1.49%)
	742,200	Companhia Hering SA (Brazil)2		10,895,050		12,071,928
	1,500,000	Under Armour, Inc., Cl A1		49,369,867		82,260,000
				60,264,917		94,331,928
		Automotive Retail (0.51%)
	500,000	CarMax, Inc.1		4,828,794		15,940,000
	950,000	Penske Automotive Group, Inc.1		16,842,089		16,549,000
				21,670,883		32,489,000
		Casinos & Gaming (1.50%)
	2,700,000	Penn National Gaming, Inc.1		75,975,994		94,905,000
		Distributors (1.70%)
	4,725,000	LKQ Corp.1		63,642,310		107,352,000
		Education Services (6.15%)
	4,667,005	Anhanguera Educacional Participacoes SA (Brazil)2		61,955,342		112,457,952
	3,625,000	DeVry, Inc.4		60,704,873		173,927,500
	675,000	Strayer Education, Inc.		55,103,824		102,748,500
				177,764,039		389,133,952
		Home Furnishings (0.20%)
	225,000	Mohawk Industries, Inc.1		6,084,594		12,771,000
		Home Improvement Retail (0.33%)
	850,000	Lumber Liquidators Holdings, Inc.1		21,247,256		21,173,500
		Hotels, Resorts & Cruise Lines (1.82%)
	3,000,000	Choice Hotels International, Inc.4		74,119,736		114,810,000
		Internet Retail (0.96%)
	1,060,000	Blue Nile, Inc.1,4		34,952,470		60,483,600
		Leisure Facilities (1.65%)
	1,900,000	Vail Resorts, Inc.1,4		51,691,238		98,876,000
	430,600	Whistler Blackcomb Holdings, Inc. (Canada)1,2		5,253,307		5,261,782
				56,944,545		104,137,782
		Publishing (2.21%)
	2,154,552	Morningstar, Inc.		62,871,271		114,363,620
	2,581,489	The New York Times Co., Cl A1		24,368,535		25,298,592
				87,239,806		139,662,212
		Restaurants (1.85%)
	825,000	Panera Bread Co., Cl A1		32,060,440		83,498,250
	800,000	Peet’s Coffee & Tea, Inc.1,4		18,562,773		33,392,000
				50,623,213		116,890,250
		Specialty Stores (2.97%)
	5,000,000	Dick’s Sporting Goods, Inc.1		86,074,246		187,500,000
	Total Consumer Discretionary			850,709,229		1,546,845,584
	Consumer Staples (4.98%)
		Food Retail (0.20%)
	250,000	Whole Foods Market, Inc.1		2,532,160		12,647,500
		Household Products (0.87%)
	800,000	Church & Dwight Co., Inc.		29,177,096		55,216,000
		Packaged Foods & Meats (3.91%)
	1,064,823	Diamond Foods, Inc.		38,931,996		56,627,287
	4,000,000	Dole Food Co., Inc.1		48,959,106		54,040,000
	1,107,649	Ralcorp Holdings, Inc.1		40,376,485		72,008,262

Shares			Cost		Value
	Common Stocks (continued)
	Consumer Staples (continued)
		Packaged Foods & Meats (continued)
	200,000	Seneca Foods Corp., Cl A1	$	4,400,000	$	5,396,000
	1,155,000	TreeHouse Foods, Inc.1		43,870,004		59,008,950
				176,537,591		247,080,499
	Total Consumer Staples			208,246,847		314,943,999
	Energy (11.22%)
		Oil & Gas Drilling (0.77%)
	1,000,000	Helmerich & Payne, Inc.		22,564,231		48,480,000
		Oil & Gas Equipment & Services (4.99%)
	875,764	CARBO Ceramics, Inc.		59,006,928		90,676,604
	1,388,272	Core Laboratories N.V.2		43,036,240		123,625,622
	1,000,000	SEACOR Holdings, Inc.1		69,798,678		101,090,000
				171,841,846		315,392,226
		Oil & Gas Exploration & Production (3.89%)
	1,600,000	Brigham Exploration Co.1		24,210,346		43,584,000
	725,463	Concho Resources, Inc.1		20,796,085		63,601,341
	2,300,000	Denbury Resources, Inc.1		13,294,520		43,907,000
	247,191	Oasis Petroleum, Inc.1		3,460,674		6,703,820
	1,500,000	SM Energy Co.		52,961,473		88,395,000
				114,723,098		246,191,161
		Oil & Gas Storage & Transportation (1.57%)
	3,600,000	Southern Union Co.		48,544,865		86,652,000
	465,000	Targa Resources Corp.1		11,953,294		12,466,650
				60,498,159		99,118,650
	Total Energy			369,627,334		709,182,037
	Financials (11.12%)
		Asset Management & Custody Banks (1.21%)
	500,000	Cohen & Steers, Inc.		6,508,018		13,050,000
	1,500,000	Eaton Vance Corp.		26,667,458		45,345,000
	925,000	Financial Engines, Inc.1		13,840,204		18,342,750
				47,015,680		76,737,750
		Consumer Finance (0.28%)
	71,037	Green Dot Corp., Cl A1		3,954,811		4,030,639
	1,046,552	Netspend Holdings, Inc.1		13,147,961		13,416,797
				17,102,772		17,447,436
		Investment Banking & Brokerage (0.46%)
	1,100,000	Jefferies Group, Inc.		10,914,727		29,293,000
		Life & Health Insurance (0.81%)
	2,100,000	Primerica, Inc.		46,453,115		50,925,000
		Office REITs (1.78%)
	135,500	Alexander’s, Inc.5		28,639,990		55,863,940
	3,400,000	Douglas Emmett, Inc.		47,518,561		56,440,000
				76,158,551		112,303,940
		Real Estate Services (0.13%)
	400,000	CB Richard Ellis Group, Inc., Cl A1		2,481,947		8,192,000
		Regional Banks (0.39%)
	1,250,000	SJB Escrow Corp., Cl A, 144A1,5,6		25,000,000		24,750,000
		Reinsurance (1.97%)
	1,414,019	Arch Capital Group, Ltd.1,2		41,977,170		124,504,373
		Residential REITs (0.30%)
	600,000	American Campus Communities, Inc.		16,235,192		19,056,000

See Notes to Schedules of Investments.

Baron Growth Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (continued)
	Financials (continued)
		Specialized Finance (2.73%)
	450,000	Interactive Brokers Group, Inc., Cl A1	$	7,760,870	$	8,019,000
	4,222,433	MSCI, Inc., Cl A1		96,041,636		164,505,990
				103,802,506		172,524,990
		Specialized REITs (1.06%)
	775,000	Alexandria Real Estate Equities, Inc.5		29,669,522		56,776,500
	400,000	LaSalle Hotel Properties		8,565,042		10,560,000
				38,234,564		67,336,500
	Total Financials			425,376,224		703,070,989
	Health Care (15.02%)
		Health Care Equipment (5.15%)
	3,000,000	Edwards Lifesciences Corp.1		42,880,877		242,520,000
	1,200,000	IDEXX Laboratories, Inc.1		40,918,632		83,064,000
				83,799,509		325,584,000
		Health Care Facilities (2.62%)
	3,625,000	Community Health Systems, Inc.1		71,473,442		135,466,250
	1,300,000	VCA Antech, Inc.1		34,889,375		30,277,000
				106,362,817		165,743,250
		Health Care Services (0.68%)
	600,000	Chemed Corp.		21,302,479		38,106,000
	125,000	IPC The Hospitalist Co., Inc.1		2,062,500		4,876,250
				23,364,979		42,982,250
		Health Care Supplies (1.22%)
	1,200,000	Gen-Probe, Inc.1,5		49,959,009		70,020,000
	175,000	Neogen Corp.1		3,887,774		7,180,250
				53,846,783		77,200,250
		Health Care Technology (0.30%)
	1,000,000	Allscripts Healthcare Solutions, Inc.1		16,782,598		19,270,000
		Life Sciences Tools & Services (3.31%)
	1,000,000	Mettler-Toledo International, Inc.1		58,852,435		151,210,000
	880,943	Techne Corp.		46,631,249		57,851,527
				105,483,684		209,061,527
		Managed Health Care (1.74%)
	2,500,000	AMERIGROUP Corp.1,4		42,959,676		109,800,000
	Total Health Care			432,600,046		949,641,277
	Industrials (10.18%)
		Construction & Engineering (1.33%)
	3,000,000	AECOM Technology Corp.1		65,871,334		83,910,000
		Diversified Support Services (2.35%)
	2,180,000	Copart, Inc.1		54,304,367		81,423,000
	2,900,000	Ritchie Bros. Auctioneers, Inc.2		66,712,065		66,845,000
				121,016,432		148,268,000
		Electrical Components & Equipment (0.83%)
	3,243,578	Generac Holdings, Inc.1		43,195,908		52,448,656
		Environmental & Facilities Services (1.13%)
	2,850,000	Tetra Tech, Inc.1		71,178,894		71,421,000
		Industrial Machinery (0.56%)
	400,000	Valmont Industries, Inc.		32,589,034		35,492,000
		Railroads (1.67%)
	2,000,000	Genesee & Wyoming, Inc., Cl A1		32,221,169		105,900,000

Shares			Cost		Value
	Common Stocks (continued)
	Industrials (continued)
		Research & Consulting Services (1.49%)
	939,811	CoStar Group, Inc.1	$	40,526,096	$	54,095,521
	400,000	IHS, Inc., Cl A1		16,387,387		32,156,000
	600,000	Mistras Group, Inc.1		7,563,468		8,088,000
				64,476,951		94,339,521
		Trading Companies & Distributors (0.51%)
	500,000	MSC Industrial Direct Co., Inc., Cl A		17,821,237		32,345,000
		Trucking (0.31%)
	475,000	Landstar System, Inc.		11,073,375		19,446,500
	Total Industrials			459,444,334		643,570,677
	Information Technology (13.08%)
		Application Software (7.54%)
	700,000	Advent Software, Inc.1		26,532,888		40,544,000
	2,250,000	ANSYS, Inc.1		54,764,730		117,157,500
	575,000	Blackboard, Inc.1		23,140,097		23,747,500
	1,000,000	Concur Technologies, Inc.1		22,319,863		51,930,000
	1,635,000	FactSet Research Systems, Inc.		82,436,633		153,297,600
	1,550,000	Pegasystems, Inc.		47,512,692		56,776,500
	1,600,000	SS&C Technologies Holdings, Inc.1		25,368,776		32,816,000
				282,075,679		476,269,100
		Internet Software & Services (1.21%)
	1,500,000	WebMD Health Corp., Cl A1		44,434,389		76,590,000
		IT Consulting & Other Services (2.91%)
	372,572	Booz Allen Hamilton Holding Corp.1		6,504,476		7,239,074
	948,535	Equinix, Inc.1,5		30,248,004		77,077,954
	3,000,000	Gartner, Inc.1		49,076,692		99,600,000
				85,829,172		183,917,028
		Systems Software (1.42%)
	883,600	TOTVS SA (Brazil)2		60,197,679		89,956,867
	Total Information Technology			472,536,919		826,732,995
	Materials (2.67%)
		Diversified Metals & Mining (2.31%)
	2,929,426	Molycorp, Inc.1		76,925,262		146,178,357
		Fertilizers & Agricultural Chemicals (0.36%)
	601,920	Intrepid Potash, Inc.1		19,321,732		22,445,597
	Total Materials			96,246,994		168,623,954
	Telecommunication Services (1.14%)
		Wireless Telecommunication Services (1.14%)
	1,765,015	SBA Communications Corp., Cl A1		7,768,187		72,259,714
	Utilities (2.21%)
		Electric Utilities (2.21%)
	2,250,000	ITC Holdings Corp.		69,934,400		139,455,000
	TOTAL COMMON STOCKS			3,392,490,514		6,074,326,226

See Notes to Schedules of Investments.

Baron Growth Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Private Equity Investments (0.35%)
	Consumer Discretionary (0.24%)
		Hotels, Resorts & Cruise Lines (0.24%)
	7,400,000	Kerzner International Holdings, Ltd., Cl A1,2,3,5,7		74,000,000		14,800,000

Financials (0.11%)
	Asset Management & Custody Banks (0.11%)
1,885,000	Windy City Investments Holdings LLC1,3,5,7	$	7,748,686	$	7,163,000
TOTAL PRIVATE EQUITY INVESTMENTS			81,748,686		21,963,000
Warrants (0.01%)
Financials (0.01%)
	Regional Banks (0.01%)
75,000	SJB Escrow Corp. Warrants, Exp 2/16/20171,5,6		0		501,225
Principal Amount
Short Term Investments (3.41%)
$215,881,143	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 1/03/2011; Proceeds at maturity – $215,881,862; (Fully collateralized by U.S. Treasury Note, 1.25% due 10/31/2015; Market value – $53,213,438 and U.S. Treasury Note, 2.125% due 12/31/2015; Market value – $173,463,056)6		215,881,143		215,881,143
TOTAL INVESTMENTS (99.86%)		$	3,690,120,343		6,312,671,594
CASH AND OTHER ASSETS LESS LIABILITIES (0.14%)					8,916,933
NET ASSETS				$	6,321,588,527
RETAIL SHARES (Equivalent to $51.23 per share based on 103,637,462 shares outstanding)				$	5,308,933,309
INSTITUTIONAL SHARES (Equivalent to $51.43 per share based on 19,689,204 shares outstanding)				$	1,012,655,218

% Represents percentage of net assets.

¹ Non-income producing securities.

² Foreign corporation.

³ At December 31, 2010, the market value of restricted and fair valued securities amounted to $21,963,000 or 0.35% of net assets. None of these securities are deemed liquid. See Note 5 regarding restricted securities.

⁴ See Note 6 regarding “Affiliated” companies.

⁵ The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

⁶ Level 2 security. See Note 3 regarding Fair Value Measurements.

⁷ Level 3 security. See Note 3 regarding Fair Value Measurements.

^144A Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to policies and procedures approved by the Board of Trustees, unless otherwise noted. At December 31, 2010, the market value of Rule 144A securities amounted to $24,750,000 or 0.39% of Net Assets.

See Notes to Schedules of Investments.

Baron Small Cap Fund

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (98.13%)
	Consumer Discretionary (25.27%)
		Advertising (3.59%)
	750,000	Arbitron, Inc.	$	27,495,018	$	31,140,000
	1,225,000	Lamar Advertising Co., Cl A1		32,190,708		48,804,000
	2,650,000	National CineMedia, Inc.		55,570,049		52,761,500
				115,255,775		132,705,500
		Apparel Retail (2.77%)
	1,750,000	J. Crew Group, Inc.1		47,919,608		75,495,000
	750,000	Urban Outfitters, Inc.1		10,990,211		26,857,500
				58,909,819		102,352,500
		Apparel, Accessories & Luxury Goods (3.75%)
	900,000	Fossil, Inc.1		24,044,725		63,432,000
	3,900,000	Iconix Brand Group, Inc.1,4,5		62,609,371		75,309,000
				86,654,096		138,741,000
		Casinos & Gaming (4.85%)
	3,100,000	Penn National Gaming, Inc.1		81,039,972		108,965,000
	750,000	WMS Industries, Inc.1		29,989,478		33,930,000
	350,000	Wynn Resorts, Ltd.		3,263,528		36,344,000
				114,292,978		179,239,000
		Computer & Electronics Retail (0.85%)
	1,500,000	hhgregg, Inc.1		25,839,828		31,425,000
		Education Services (1.72%)
	250,000	Capella Education Co.1		8,668,802		16,645,000
	308,808	Strayer Education, Inc.		27,539,086		47,006,754
				36,207,888		63,651,754
		Home Improvement Retail (0.91%)
	1,350,000	Lumber Liquidators Holdings, Inc.1		29,402,333		33,628,500
		Hotels, Resorts & Cruise Lines (1.34%)
	3,060,000	Great Wolf Resorts, Inc.1,4		55,012,502		8,017,200
	20,000,000	Mandarin Oriental International, Ltd. (Singapore)2		40,047,095		41,400,000
				95,059,597		49,417,200
		Internet Retail (0.23%)
	2,325,000	Vitacost.com, Inc.1,3,4,8		23,626,535		8,625,750
		Movies & Entertainment (2.89%)
	1,500,000	Liberty Media Corp.1		24,179,194		93,840,000
	500,000	Madison Square Garden, Inc., Cl A1		12,367,308		12,890,000
				36,546,502		106,730,000
		Restaurants (2.37%)
	1,250,000	Bravo Brio Restaurant Group, Inc.1,4		19,188,016		23,962,500
	950,000	Cheesecake Factory, Inc.1		18,719,871		29,127,000
	2,000,000	Texas Roadhouse, Inc., Cl A1		21,811,221		34,340,000
				59,719,108		87,429,500
	Total Consumer Discretionary			681,514,459		933,945,704
	Consumer Staples (0.40%)
		Soft Drinks (0.40%)
	1,037,000	Primo Water Corp.1,4		13,922,993		14,735,770
	Energy (8.77%)
		Oil & Gas Equipment & Services (2.85%)
	500,000	CARBO Ceramics, Inc.		34,457,138		51,770,000
	600,000	Core Laboratories N.V.2		23,095,109		53,430,000
				57,552,247		105,200,000
		Oil & Gas Exploration & Production (5.24%)
	700,000	Atlas Energy, Inc.1		17,356,241		30,779,000
	2,000,000	Brigham Exploration Co.1		21,988,814		54,480,000

Shares			Cost		Value
	Common Stocks (continued)
	Energy (continued)
		Oil & Gas Exploration & Production (continued)
	800,000	Concho Resources, Inc.1	$	22,541,595	$	70,136,000
	500,000	GeoResources, Inc.1		5,100,000		11,105,000
	1,000,000	Oasis Petroleum, Inc.1		14,212,944		27,120,000
				81,199,594		193,620,000
		Oil & Gas Storage & Transportation (0.68%)
	201,995	PAA Natural Gas Storage LP		4,349,046		5,037,755
	750,000	Targa Resources Corp.1		17,965,719		20,107,500
				22,314,765		25,145,255
	Total Energy			161,066,606		323,965,255
	Financials (8.45%)
		Asset Management & Custody Banks (0.86%)
	1,600,000	Financial Engines, Inc.1		24,999,594		31,728,000
		Consumer Finance (0.42%)
	274,145	Green Dot Corp., Cl A1		12,846,483		15,554,987
		Diversified Real Estate Activities (0.76%)
	2,000,000	Campus Crest Communities, Inc. 4		25,137,765		28,040,000
		Office REITs (1.84%)
	500,000	Corporate Office Properties Trust		16,874,242		17,475,000
	750,000	SL Green Realty Corp.		17,178,705		50,632,500
				34,052,947		68,107,500
		Real Estate Services (1.25%)
	2,250,000	CB Richard Ellis Group, Inc., Cl A1		12,904,259		46,080,000
		Regional Banks (0.67%)
	1,250,000	SJB Escrow Corp., Cl A, 144A1,5,8		25,000,000		24,750,000
		Reinsurance (0.21%)
	87,255	Arch Capital Group, Ltd.1,2		2,303,123		7,682,803
		Specialized Finance (1.19%)
	1,126,513	MSCI, Inc., Cl A1		25,427,990		43,888,946
		Specialized REITs (1.25%)
	901,862	Chesapeake Lodging Trust3,4,5,8		16,955,006		16,621,317
	774,200	Chesapeake Lodging Trust4,5		12,580,750		14,562,702
	750,000	Pebblebrook Hotel Trust		14,262,777		15,240,000
				43,798,533		46,424,019
	Total Financials			206,470,694		312,256,255
	Health Care (12.13%)
		Health Care Equipment (3.63%)
	750,000	IDEXX Laboratories, Inc.1		24,457,964		51,915,000
	150,000	Intuitive Surgical, Inc.1		2,175,000		38,662,500
	1,500,000	Masimo Corp.		33,862,646		43,605,000
				60,495,610		134,182,500
		Health Care Facilities (2.99%)
	3,550,000	Brookdale Senior Living, Inc.1		68,396,819		76,005,500
	1,750,000	Emeritus Corp.1		50,131,389		34,492,500
				118,528,208		110,498,000
		Health Care Services (0.53%)
	300,000	HMS Holdings Corp.1		14,106,317		19,431,000
		Health Care Supplies (1.18%)
	750,000	Gen-Probe, Inc.1,5		31,517,368		43,762,500
		Life Sciences Tools & Services (3.80%)
	850,000	Covance, Inc.1		31,441,182		43,698,500
	1,164,916	Luminex Corp.1		19,283,188		21,294,665

See Notes to Schedules of Investments.

Baron Small Cap Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (continued)
	Health Care (continued)
		Life Sciences Tools & Services (continued)
	500,000	Mettler-Toledo International, Inc.1	$	31,248,358	$	75,605,000
				81,972,728		140,598,165
	Total Health Care			306,620,231		448,472,165
	Industrials (19.35%)
		Aerospace & Defense (3.23%)
	1,500,000	KEYW Holding Corp.1,4		16,635,084		22,005,000
	1,350,000	TransDigm Group, Inc.1		35,096,586		97,213,500
				51,731,670		119,218,500
		Construction & Engineering (0.31%)
	1,000,000	Orion Marine Group, Inc.1		13,454,933		11,600,000
		Construction & Farm Machinery & Heavy Trucks (1.14%)
	800,000	Wabtec Corp.		26,349,851		42,312,000
		Diversified Support Services (1.25%)
	2,000,000	Ritchie Bros. Auctioneers, Inc.2		37,985,919		46,100,000
		Electrical Components & Equipment (0.83%)
	750,000	Polypore International, Inc.1		22,154,795		30,547,500
		Environmental & Facilities Services (5.78%)
	850,000	Clean Harbors, Inc.1		44,961,979		71,468,000
	2,000,000	Covanta Holding Corp.		29,064,108		34,380,000
	1,000,000	Tetra Tech, Inc.1		25,773,708		25,060,000
	3,000,000	Waste Connections, Inc.		54,338,355		82,590,000
				154,138,150		213,498,000
		Human Resource & Employment Services (1.20%)
	850,000	Towers Watson & Co., Cl A		33,744,465		44,251,000
		Industrial Machinery (2.79%)
	1,100,000	Graco, Inc.		25,662,211		43,395,000
	650,000	Nordson Corp.		42,812,853		59,722,000
				68,475,064		103,117,000
		Railroads (1.29%)
	900,000	Genesee & Wyoming, Inc., Cl A1		23,192,198		47,655,000
		Research & Consulting Services (1.53%)
	1,250,000	Huron Consulting Group, Inc.1,4		40,540,236		33,062,500
	1,750,000	Mistras Group, Inc.1,4		20,709,995		23,590,000
				61,250,231		56,652,500
	Total Industrials			492,477,276		714,951,500
	Information Technology (14.60%)
		Application Software (2.99%)
	600,000	Advent Software, Inc.1		16,654,197		34,752,000
	1,425,946	RealPage, Inc.1		24,979,795		44,104,510
	650,001	Ultimate Software Group, Inc.1		14,157,645		31,609,548
				55,791,637		110,466,058
		Computer Hardware (0.79%)
	1,900,000	NCR Corp.1		23,641,942		29,203,000
		Data Processing & Outsourced Services (0.86%)
	950,000	FleetCor Technologies, Inc.1		23,600,403		29,374,000
	50,000	Wright Express Corp.1		2,239,329		2,300,000
				25,839,732		31,674,000
		Electronic Equipment & Instruments (2.23%)
	1,500,000	FLIR Systems, Inc.1		10,094,186		44,625,000

Shares			Cost		Value
	Common Stocks (continued)
	Information Technology (continued)
		Electronic Equipment & Instruments (continued)
	1,000,000	National Instruments Corp.	$	29,401,075	$	37,640,000
				39,495,261		82,265,000
		Internet Software & Services (0.64%)
	1,000,000	AOL, Inc.1		23,050,041		23,710,000
		IT Consulting & Other Services (4.84%)
	875,000	Equinix, Inc.1,5		55,025,037		71,102,500
	2,250,000	Gartner, Inc.1		41,942,702		74,700,000
	1,250,000	Telvent GIT SA (Spain)1,2		40,609,861		33,025,000
				137,577,600		178,827,500
		Semiconductor Equipment (0.57%)
	1,000,000	Rubicon Technology, Inc.1,6		13,703,720		21,080,000
		Semiconductors (1.12%)
	1,000,000	Power Integrations, Inc.		37,060,909		40,140,000
	50,000	SemiLEDs Corp.1		850,000		1,452,500
				37,910,909		41,592,500
		Technology Distributors (0.56%)
	350,000	Anixter International, Inc.1		16,167,504		20,905,500
	Total Information Technology			373,178,346		539,723,558
	Materials (4.20%)
		Construction Materials (0.46%)
	600,000	Eagle Materials, Inc.		10,395,269		16,950,000
		Diversified Metals & Mining (1.62%)
	3,500,000	Globe Specialty Metals, Inc.		36,717,668		59,815,000
		Specialty Chemicals (2.12%)
	1,500,000	Kraton Performance Polymers, Inc.1		41,079,391		46,425,000
	1,000,000	Nalco Holding Co.		17,014,844		31,940,000
				58,094,235		78,365,000
	Total Materials			105,207,172		155,130,000
	Telecommunication Services (4.58%)
		Wireless Telecommunication Services (4.58%)
	1,100,000	American Tower Corp., Cl A1		3,816,077		56,804,000
	2,750,000	SBA Communications Corp., Cl A1		26,849,042		112,585,000
	Total Telecommunication Services			30,665,119		169,389,000
	Utilities (0.38%)
		Electric Utilities (0.38%)
	225,000	ITC Holdings Corp.		9,427,959		13,945,500
	TOTAL COMMON STOCKS			2,380,550,855		3,626,514,707
	Private Equity Investments (0.19%)
	Consumer Discretionary (0.19%)
		Hotels, Resorts & Cruise Lines (0.19%)
	3,500,000	Kerzner International Holdings, Ltd., Cl A1,2,3,5,9		35,000,000		7,000,000
	Warrants (0.01%)
	Financials (0.01%)
		Regional Banks (0.01%)
	75,000	SJB Escrow Corp.1,5,8		0		501,225

See Notes to Schedules of Investments.

Baron Small Cap Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Principal Amount		Cost		Value
Short Term Investments (3.83%)
$ 130,437,581	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 1/03/2011; Proceeds at maturity – $130,438,016; (Fully collateralized by U.S. Treasury Note, 1.25% due 10/31/2015; Market value – $136,961,875)8	$	130,437,581	$	130,437,581
11,000,000	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 1/03/2011; Proceeds at maturity – $11,000,037; (Fully collateralized by U.S. Treasury Note, 1.25% due 10/31/2015; Market value – $11,552,344)7,8		11,000,000		11,000,000
TOTAL SHORT TERM INVESTMENTS			141,437,581		141,437,581
TOTAL INVESTMENTS (102.16%)		$	2,556,988,436		3,775,453,513
LIABILITIES LESS CASH AND OTHER ASSETS (-2.16%)					(79,841,193	)
NET ASSETS				$	3,695,612,320
RETAIL SHARES (Equivalent to $23.79 per share based on 140,370,063 shares outstanding)				$	3,338,752,439
INSTITUTIONAL SHARES (Equivalent to $23.88 per share based on 14,945,921 shares outstanding)				$	356,859,881

% Represents percentage of net assets.

¹ Non-income producing securities.

² Foreign corporation.

³ At December 31, 2010, the market value of restricted and fair valued securities amounted to $32,247,067 or 0.87% of net assets. 0.45% of these securities are deemed liquid. See Note 5 regarding restricted securities.

⁴ See Note 6 regarding “Affiliated” companies.

⁵ The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

⁶ All or a portion of this security is on loan. The value of all securities loaned at December 31, 2010 amounted to $10,540,000, which is 0.29% of net assets.

⁷ Represents security purchased with the cash collateral received for security on loan.

⁸ Level 2 Security. See Note 3 regarding Fair Value Measurements.

⁹ Level 3 Security. See Note 3 regarding Fair Value Measurements.

^144A Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to policies and procedures approved by the Board of Trustees, unless otherwise noted. At December 31, 2010, the market value of Rule 144A securities amounted to $24,750,000 or 0.67% of Net Assets.

See Notes to Schedules of Investments.

Baron Opportunity Fund

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (96.98%)
	Consumer Discretionary (16.55%)
		Advertising (3.82%)
	175,500	Lamar Advertising Co., Cl A1	$	5,581,388	$	6,991,920
	198,500	National CineMedia, Inc.		3,524,779		3,952,135
				9,106,167		10,944,055
		Automotive Retail (1.09%)
	98,500	CarMax, Inc.1		2,467,463		3,140,180
		Broadcasting (2.25%)
	175,500	Discovery Communications, Inc., Series C1		6,514,899		6,439,095
		Casinos & Gaming (1.09%)
	69,000	WMS Industries, Inc.1		2,674,013		3,121,560
		Internet Retail (6.77%)
	29,500	Amazon.com, Inc.1		3,048,952		5,310,000
	85,100	Blue Nile, Inc.1		3,704,608		4,855,806
	146,500	Expedia, Inc.		3,551,567		3,675,685
	10,000	priceline.com, Inc.1		1,661,754		3,995,500
	425,000	Vitacost.com, Inc.1,4,5		4,243,836		1,576,750
				16,210,717		19,413,741
		Movies & Entertainment (1.53%)
	70,000	Liberty Media Corp.1		3,061,079		4,379,200
	Total Consumer Discretionary			40,034,338		47,437,831
	Energy (6.84%)
		Oil & Gas Equipment & Services (3.97%)
	64,000	CARBO Ceramics, Inc.		4,387,341		6,626,560
	350,000	RigNet, Inc.1		4,200,000		4,756,500
				8,587,341		11,383,060
		Oil & Gas Exploration & Production (2.87%)
	177,500	Oasis Petroleum, Inc.1		2,650,115		4,813,800
	91,000	Southwestern Energy Co.1		3,301,630		3,406,130
				5,951,745		8,219,930
	Total Energy			14,539,086		19,602,990
	Financials (8.51%)
		Asset Management & Custody Banks (1.49%)
	215,211	Financial Engines, Inc.1		3,112,130		4,267,634
		Consumer Finance (1.53%)
	43,246	Green Dot Corp., Cl A1		2,156,569		2,453,778
	151,112	Netspend Holdings, Inc.1		1,898,456		1,937,256
				4,055,025		4,391,034
		Diversified Real Estate Activities (1.05%)
	90,000	Brookfield Asset Management, Inc., Cl A2		2,546,008		2,996,100
		Investment Banking & Brokerage (1.46%)
	245,000	Charles Schwab Corp.		3,614,887		4,191,950
		Specialized Finance (2.98%)
	219,100	MSCI, Inc., Cl A1		5,788,659		8,536,136
	Total Financials			19,116,709		24,382,854
	Health Care (10.27%)
		Health Care Equipment (3.81%)
	18,000	Edwards Lifesciences Corp.1		790,414		1,455,120
	13,500	Intuitive Surgical, Inc.1		3,532,053		3,479,625
	205,500	Masimo Corp.		5,302,124		5,973,885
				9,624,591		10,908,630
		Health Care Services (1.64%)
	72,500	HMS Holdings Corp.1		3,822,122		4,695,825
		Health Care Supplies (0.65%)
	32,000	Gen-Probe, Inc.1,3		1,461,454		1,867,200

Shares			Cost		Value
	Common Stocks (continued)
	Health Care (continued)
		Health Care Technology (1.93%)
	288,000	Allscripts Healthcare Solutions, Inc.1	$	4,923,462	$	5,549,760
		Life Sciences Tools & Services (2.24%)
	54,000	Illumina, Inc.1		2,195,659		3,420,360
	163,566	Luminex Corp.1		2,729,654		2,989,986
				4,925,313		6,410,346
	Total Health Care			24,756,942		29,431,761
	Industrials (7.98%)
		Diversified Support Services (0.83%)
	100,000	EnerNOC, Inc.1		1,397,454		2,391,000
		Electrical Components & Equipment (1.86%)
	130,500	Polypore International, Inc.1		3,838,452		5,315,265
		Environmental & Facilities Services (1.97%)
	225,000	Tetra Tech, Inc.1		5,083,488		5,638,500
		Research & Consulting Services (3.32%)
	92,886	CoStar Group, Inc.1		3,485,390		5,346,518
	52,000	IHS, Inc., Cl A1		2,134,957		4,180,280
				5,620,347		9,526,798
	Total Industrials			15,939,741		22,871,563
	Information Technology (39.26%)
		Application Software (12.50%)
	137,010	ANSYS, Inc.1		4,458,105		7,134,111
	130,000	BroadSoft, Inc.1		2,864,332		3,104,400
	50,000	Citrix Systems, Inc.1		1,673,926		3,420,500
	44,000	FactSet Research Systems, Inc.		2,649,117		4,125,440
	66,000	Informatica Corp.1		1,633,852		2,905,980
	193,000	Pegasystems, Inc.		5,677,927		7,069,590
	166,610	RealPage, Inc.1		3,318,254		5,153,247
	100,000	SuccessFactors, Inc.1		2,072,225		2,896,000
				24,347,738		35,809,268
		Communications Equipment (4.68%)
	22,500	F5 Networks, Inc.1		2,297,017		2,928,600
	94,000	Polycom, Inc.1		3,695,002		3,664,120
	63,500	QUALCOMM, Inc.		2,328,299		3,142,615
	104,500	Riverbed Technology, Inc.1		1,411,616		3,675,265
				9,731,934		13,410,600
		Computer Hardware (3.04%)
	27,000	Apple, Inc.1		2,997,137		8,709,120
		Home Entertainment Software (1.54%)
	355,000	Activision Blizzard, Inc.		3,211,032		4,416,200
		Internet Software & Services (7.63%)
	204,500	AOL, Inc.1		5,083,311		4,848,695
	8,150	Google, Inc., Cl A1		4,829,491		4,840,856
	176,000	GSI Commerce, Inc.1		3,215,729		4,083,200
	474,829	TechTarget, Inc.1		1,703,114		3,765,394
	85,000	WebMD Health Corp., Cl A1		2,291,003		4,340,100
				17,122,648		21,878,245
		IT Consulting & Other Services (6.60%)
	117,000	Equinix, Inc.1,3		6,041,936		9,507,420
	283,144	Gartner, Inc.1		5,630,836		9,400,381
				11,672,772		18,907,801

See Notes to Schedules of Investments.

Baron Opportunity Fund

SCHEDULE OF INVESTMENTS (CONTINUED)

DECEMBER 31, 2010 (UNAUDITED)

Shares		Cost		Value
Common Stocks (continued)
Information Technology (continued)
	Systems Software (3.27%)
58,000	TOTVS SA2	$	3,104,876	$	5,904,819
39,000	VMware, Inc., Cl A1		3,134,264		3,467,490
			6,239,140		9,372,309
Total Information Technology			75,322,401		112,503,543
Telecommunication Services (7.57%)
	Wireless Telecommunication Services (7.57%)
227,000	NII Holdings, Inc.1		10,278,070		10,137,820
282,000	SBA Communications Corp., Cl A1		6,401,980		11,545,080
Total Telecommunication Services			16,680,050		21,682,900
TOTAL COMMON STOCKS			206,389,267		277,913,442
Principal Amount
Short Term Investments (3.04%)
$8,707,942	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 1/03/2011; Proceeds at maturity – $8,707,971; (Fully collateralized by U.S. Treasury Note, 2.125% due 12/31/2015; Market value – $9,144,163)4		8,707,942		8,707,942
TOTAL INVESTMENTS (100.02%)		$	215,097,209		286,621,384
LIABILITIES LESS CASH AND OTHER ASSETS (-0.02%)					(71,265	)
NET ASSETS				$	286,550,119
RETAIL SHARES (Equivalent to $14.45 per share based on 17,117,665 shares outstanding)				$	247,290,154
INSTITUTIONAL SHARES (Equivalent to $14.51 per share based on 2,705,976 shares outstanding)				$	39,259,965

% Represents percentage of net assets.

¹ Non-income producing securities.

² Foreign corporation.

³ The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

⁴ Level 2 security. See Note 3 regarding Fair Value Measurements.

⁵ At December 31, 2010, the market value of restricted and fair valued securities amounted to $1,576,750 or 0.55% of net assets. None of these securities are deemed liquid. See Note 5 regarding restricted securities.

See Notes to Schedules of Investments.

Baron Fifth Avenue Growth Fund

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2010 (UNAUDITED)

Shares			Cost		Value
	Common Stocks (96.75%)
	Consumer Discretionary (29.89%)
		Auto Parts & Equipment (1.26%)
	7,000	BorgWarner, Inc.1	$	411,153	$	506,520
		Automobile Manufacturers (3.61%)
	86,000	Ford Motor Co.1		1,114,409		1,443,940
		Broadcasting (2.45%)
	23,500	Discovery Communications, Inc., Cl A1		773,451		979,950
		General Merchandise Stores (2.10%)
	14,000	Target Corp.		585,026		841,820
		Home Improvement Retail (2.14%)
	24,500	Home Depot, Inc.		764,448		858,970
		Hotels, Resorts & Cruise Lines (10.13%)
	34,000	Carnival Corp.2		1,306,877		1,567,740
	23,000	Hyatt Hotels Corp., Cl A1		617,510		1,052,480
	14,000	Starwood Hotels & Resorts Worldwide, Inc.		839,900		850,920
	19,500	Wyndham Worldwide Corp.		592,448		584,220
				3,356,735		4,055,360
		Internet Retail (2.79%)
	6,200	Amazon.com, Inc.1		591,510		1,116,000
		Movies & Entertainment (3.97%)
	17,800	Liberty Media Corp.1		808,430		1,113,568
	12,000	Viacom, Inc.		408,824		475,320
				1,217,254		1,588,888
		Restaurants (1.44%)
	7,500	McDonald’s Corp.		429,310		575,700
	Total Consumer Discretionary			9,243,296		11,967,148
	Consumer Staples (2.79%)
		Hypermarkets & Super Centers (2.79%)
	15,500	Costco Wholesale Corp.		753,382		1,119,255
	Energy (6.22%)
		Integrated Oil & Gas (3.67%)
	15,000	Occidental Petroleum Corp.		1,175,648		1,471,500
		Oil & Gas Equipment & Services (2.55%)
	25,000	Halliburton Co.		776,063		1,020,750
	Total Energy			1,951,711		2,492,250
	Financials (13.08%)
		Consumer Finance (1.93%)
	18,000	American Express Co.		433,059		772,560
		Diversified Banks (3.49%)
	45,000	Wells Fargo & Company		1,305,773		1,394,550
		Diversified Real Estate Activities (2.16%)
	26,000	Brookfield Asset Management, Inc., Cl A2		826,385		865,540
		Investment Banking & Brokerage (1.05%)
	2,500	Goldman Sachs Group, Inc.		317,499		420,400
		Other Diversified Financial Services (3.55%)
	33,500	JPMorgan Chase & Co.		1,120,141		1,421,070
		Property & Casualty Insurance (0.90%)
	3	Berkshire Hathaway, Inc., Cl A1		224,597		361,350
	Total Financials			4,227,454		5,235,470
	Health Care (12.96%)
		Health Care Distributors (2.37%)
	13,500	McKesson Corp.		934,909		950,130
		Health Care Equipment (2.00%)
	3,100	Intuitive Surgical, Inc.1		813,121		799,025
		Health Care Facilities (2.89%)
	31,000	Community Health Systems, Inc.1		1,174,755		1,158,470
		Health Care Services (1.82%)
	13,500	Express Scripts, Inc.1		617,166		729,675
		Life Sciences Tools & Services (3.88%)
	14,000	Life Technologies Corp.1		716,644		777,000
	14,000	Thermo Fisher Scientific, Inc.1		757,707		775,040
				1,474,351		1,552,040
	Total Health Care			5,014,302		5,189,340

Shares		Cost		Value
Common Stocks (continued)
Industrials (12.52%)
	Air Freight & Logistics (3.37%)
14,500	FedEx Corp.	$	1,196,117	$	1,348,645
	Environmental & Facilities Services (3.06%)
41,000	Republic Services, Inc.		864,002		1,224,260
	Industrial Conglomerates (2.80%)
13,000	3M Co.		1,079,347		1,121,900
	Trading Companies & Distributors (3.29%)
22,000	Fastenal Co.		817,297		1,318,020
Total Industrials			3,956,763		5,012,825
Information Technology (12.08%)
	Application Software (1.54%)
9,000	Citrix Systems, Inc.1		358,391		615,690
	Communications Equipment (0.97%)
10,000	Polycom, Inc.1		399,320		389,800
	Computer Hardware (3.42%)
4,250	Apple, Inc.1		170,538		1,370,880
	Internet Software & Services (3.81%)
21,500	AOL, Inc.1		494,783		509,765
1,710	Google, Inc., Cl A1		452,419		1,015,689
			947,202		1,525,454
	IT Consulting & Other Services (2.34%)
11,500	Equinix, Inc.1,3		844,445		934,490
Total Information Technology			2,719,896		4,836,314
Materials (1.13%)
	Specialty Chemicals (1.13%)
9,000	Ecolab, Inc.		389,889		453,780
Telecommunication Services (6.08%)
	Wireless Telecommunication Services (6.08%)
25,500	American Tower Corp., Cl A1		434,149		1,316,820
25,000	NII Holdings, Inc.1		769,223		1,116,500
Total Telecommunication Services			1,203,372		2,433,320
TOTAL COMMON STOCKS			29,460,065		38,739,702
Principal Amount
Short Term Investments (3.60%)
$1,440,103	Repurchase Agreement with Fixed Income Clearing Corp., dated 12/31/2010, 0.04% due 01/03/2011; Proceeds at maturity – $1,440,108; (Fully collateralized by U.S. Treasury Note, 1.25% due 10/31/2015; Market value – $1,516,094)4		1,440,103		1,440,103
TOTAL INVESTMENTS (100.35%)		$	30,900,168		40,179,805
LIABILITIES LESS CASH AND OTHER ASSETS (-0.35%)					(141,430	)
NET ASSETS				$	40,038,375
RETAIL SHARES (Equivalent to $10.09 per share based on 2,818,011 shares outstanding)				$	28,423,887
INSTITUTIONAL SHARES (Equivalent to $10.09 per share based on 1,150,524 shares outstanding)				$	11,614,488

% Represents percentage of net assets.

¹ Non-income producing securities.

² Foreign corporation.

³ The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI.

4 Level 2 security. See Note 3 regarding Fair value Measurements.

See Notes to Schedules of Investments.

Baron Investment Funds Trust December 31, 2010

NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)

1. Organization

Baron Investment Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an 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 Opportunity Fund and Baron Fifth Avenue Growth Fund.

Each Fund offers two classes of shares, Retail Shares and Institutional Shares, which differ only in their ongoing fees, expenses and eligibility requirements. Retail Shares are offered to all investors. Institutional Shares are for investments in the amount of $1 million or more per Fund. Institutional Shares are intended for certain financial intermediaries that offer shares of Baron Funds through fee based platforms, retirement platforms or other platforms. Each class of shares has equal rights to earnings and assets except that each class bears different expenses for distribution and shareholder servicing. Investment income, realized and unrealized gains or losses on investment and foreign currency, and expenses other than those attributable to a specific class are allocated to each class based on its relative net assets. Each class of shares has exclusive voting rights with respect to matters that affect just that class.

The investment objectives of the Funds are as follows:

Baron Asset Fund seeks capital appreciation through long-term investments primarily in securities of medium-sized companies with undervalued assets or favorable growth prospects.

Baron Growth Fund seeks capital appreciation through long-term investments primarily in securities of small-sized growth companies.

Baron Small Cap Fund seeks capital appreciation through investments primarily in securities of small-sized growth companies.

Baron Opportunity Fund seeks capital appreciation through investments primarily in growth companies that benefit from technology advances.

Baron Fifth Avenue Growth Fund seeks capital appreciation through investments primarily in securities of large-sized growth companies.

2. Significant Accounting Policies

a) Security Valuation. The Funds’ share prices or net asset values are calculated as of the close of the regular session trading (usually 4 P.M. E.T.) on the New York Stock Exchange (“NYSE”) on any day on which the NYSE is open for trading. 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. Where market quotations are not readily available, or, if in the Adviser’s judgment, they do not accurately reflect the 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 policies and procedures approved by the Board of Trustees (the “Board”). The Adviser has a Fair Valuation Committee (the “Committee”) comprised of senior executives and the Committee reports to the Board every quarter. Factors the Committee considers when valuing a security 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 guarantee, 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 on the basis of prices obtained from a pricing service approved by the Board or at the mean of the bid and ask prices from the dealer maintaining an active market in that security. Money market instruments held by the Funds with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair value.

Non-U.S. equity securities are valued on the basis of their most recent closing market prices and translated into U.S. dollars at 4 p.m. E.T., except under the circumstances described below. Most foreign markets close before 4 p.m. E.T. For securities primarily traded in the Far East, for example, the most recent closing prices may be as much as fifteen hours old at 4 p.m. E.T. If the Adviser determines that developments between the close of the foreign market and 4 p.m. E.T. will, in its judgment, materially affect the value of some or all of the Funds’ securities, the Adviser will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of 4 p.m. E.T. In deciding whether to make these adjustments, the Adviser reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent non-U.S. securities and baskets of non-U.S. securities. The Adviser may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open. The Adviser uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The Adviser cannot predict how often it will use closing prices or how often it will adjust those prices. As a means of evaluating its fair value process, the Adviser routinely compares closing market prices, the next day’s opening prices in the same markets, and adjusted prices. Other mutual funds may adjust the prices of their securities by different amounts.

b) Securities Lending. The Funds may lend securities to certain brokers. Upon such loans, the Funds receive collateral which is maintained by the custodian. The Funds earn interest on such collateral and earn income in the form of negotiated lenders’ fees. Securities loaned are required to be secured at all times by collateral equal to at least 102% of the market value of the securities loaned. Risks may arise upon entering into securities lending to the extent that the value of the collateral is less than the value of the securities loaned due to the changes in the value of collateral or the loaned securities. The Funds may receive collateral in the form of cash or other eligible securities, such as a letter of

Baron Investment Funds Trust December 31, 2010

credit issued by a U.S. bank or securities issued or guaranteed by the U.S. government. Securities purchased with cash collateral are subject to the risks inherent in investing in these securities.

At December 31, 2010, Baron Small Cap Fund had securities on loan with a value of $10,540,000 and held $11,000,000 of short-term investments as collateral for these loans.

c) Repurchase Agreements. The Funds may invest in repurchase agreements, which are short-term investments whereby the Funds acquire ownership of a debt security and the seller agrees to repurchase the security at a future date at a specified price. When entering into repurchase agreements, it is the Funds’ policy that their custodian or a third party custodian take possession of the underlying collateral securities, the market value of which, at all times, equals at least 105% of the principal amount of the repurchase transaction. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited.

3. Fair Value Measurements

Fair value is defined by accounting principles generally accepted in the United States of America (“GAAP”) as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. GAAP provides a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1 – quoted prices in active markets for identical assets or liabilities;

• Level 2 – prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk , etc.);

• Level 3 – prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, non-U.S. securities, whose markets close hours before the Funds value their holdings, may require revised valuations due to significant movement in the U.S. markets. Since these values are not obtained from quoted prices in an active market such securities are reflected as Level 2.

The following is a summary of the inputs used as of December 31, 2010 in valuing the Funds’ investments carried at fair value:

Baron Asset Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks†	$	2,843,688,582	$	21,269,562	$	—	$	2,864,958,144
Private Equity Investments†		—		—		31,680,013		31,680,013
Short Term Investments		—		31,641,780		—		31,641,780
Total Investments	$	2,843,688,582	$	52,911,342	$	31,680,013	$	2,928,279,937

† See Schedule of Investments for additional detailed categorizations.

Baron Investment Funds Trust December 31, 2010

Baron Growth Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks†	$	6,049,576,226	$	24,750,000		—	$	6,074,326,226
Private Equity Investments†		—		—		21,963,000		21,963,000
Warrants†		—		501,225		—		501,225
Short Term Investments		—		215,881,143		—		215,881,143
Total Investments	$	6,049,576,226	$	241,132,368	$	21,963,000	$	6,312,671,594

Baron Small Cap Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks†	$	3,576,517,640	$	49,997,067	$	—	$	3,626,514,707
Private Equity Investments†		—		—		7,000,000		7,000,000
Warrants†		—		501,225		—		501,225
Short Term Investments		—		141,437,581		—		141,437,581
Total Investments	$	3,576,517,640	$	191,935,873	$	7,000,000	$	3,775,453,513

Baron Opportunity Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks†	$	276,336,692	$	1,576,750	$	—	$	277,913,442
Short Term Investments		—		8,707,942		—		8,707,942
Total Investments	$	276,336,692	$	10,284,692	$	—	$	286,621,384

Baron Fifth Avenue Growth Fund

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common Stocks†	$	38,739,702	$	—	$	—	$	38,739,702
Short Term Investments		—		1,440,103		—		1,440,103
Total Investments	$	38,739,702	$	1,440,103	$	—	$	40,179,805

† See Schedule of Investments for additional detailed categorizations.

Baron Investment Funds Trust December 31, 2010

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

Baron Asset Fund

Investments in Securities	Balance as of September 30, 2010		Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)		Transfers Into Level 3		Transfers Out of Level 3		Balance as of December 31, 2010		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at December 31, 2010
Private Equity Investments:
Consumer Discretionary	$	15,600,000	$	—	$	—	$	(5,200,000)	$	—	$	—	$	—	$	10,400,000	$	(5,200,000)
Financials		21,280,013		—		—		—		—		—		—		21,280,013		—
Total	$	36,880,013	$	—	$	—	$	(5,200,000)	$	—	$	—	$	—	$	31,680,013	$	(5,200,000)

Baron Growth Fund

Investments in Securities	Balance as of September 30, 2010		Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)		Transfers Into Level 3		Transfers Out of Level 3		Balance as of December 31, 2010		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at December 31, 2010
Private Equity Investments:
Consumer Discretionary	$	22,200,000	$	—	$	—	$	(7,400,000)	$	—	$	—	$	—	$	14,800,000	$	(7,400,000)
Financials		7,163,000		—		—		—		—		—		—		7,163,000		—
Total	$	29,363,000	$	—	$	—	$	(7,400,000)	$	—	$	—	$	—	$	21,963,000	$	(7,400,000)

Baron Small Cap Fund

Investments in Securities	Balance as of September 30, 2010		Accrued Premiums/ Discounts		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)		Transfers Into Level 3		Transfers Out of Level 3		Balance as of December 31, 2010		Change in Net Unrealized Appreciation (Depreciation) from Investments still held at December 31, 2010
Private Equity Investments:
Consumer Discretionary	$	10,500,000	$	—	$	—	$	(3,500,000)	$	—	$	—	$	—	$	7,000,000	$	(3,500,000)
Total	$	10,500,000	$	—	$	—	$	(3,500,000)	$	—	$	—	$	—	$	7,000,000	$	(3,500,000)

4. Cost of Investments for Income Tax Purposes

As of December 31, 2010, the components of net assets on a tax basis were substantially as follows:

	Baron Asset Fund		Baron Growth Fund		Baron Small Cap Fund		Baron Opportunity Fund		Baron Fifth Avenue Growth Fund
Cost of investments	$	1,719,936,030	$	3,690,120,343	$	2,556,988,436	$	215,097,209	$	30,900,168
Unrealized appreciation		1,277,965,238		2,687,566,157		1,345,123,529		74,725,241		9,327,766
Unrealized depreciation		(69,621,331)		(65,014,906)		(126,658,452)		(3,201,066)		(48,129)
Net unrealized appreciation	$	1,208,343,907	$	2,622,551,251	$	1,218,465,077	$	71,524,175	$	9,279,637

5. Restricted Securities

At December 31, 2010, investments in securities included securities that are restricted and/or illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale and are valued pursuant to the policies and procedures for fair value pricing approved by the Board. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Funds may receive more or less than this valuation in an actual sale and that difference could be material. At December 31, 2010, the Funds held investments in restricted and/or illiquid securities that were valued pursuant to policies and procedures for fair value pricing as follows:

Baron Investment Funds Trust December 31, 2010

Baron Asset Fund

Name of Issuer	Acquisition Date		Value
Private Equity Investments
Kerzner International Holdings, Ltd., Cl A		9/27/06	$	10,400,000
Windy City Investments Holdings LLC		11/13/07		21,280,013
Total Restricted Securities:			$	31,680,013
(Cost $83,960,710) (1.09% of Net Assets)

Baron Growth Fund

Name of Issuer	Acquisition Date		Value
Private Equity Investments
Kerzner International Holdings, Ltd., Cl A		9/27/06	$	14,800,000
Windy City Investments Holdings LLC		11/13/07		7,163,000
Total Restricted Securities:			$	21,963,000
(Cost $81,748,686) (0.35% of Net Assets)

Baron Small Cap Fund

Name of Issuer	Acquisition Date		Value
Common Stocks
Chesapeake Lodging Trust		1/21/10	$	16,621,317
Vitacost.com		Various		8,625,750
Total Common Stocks				25,247,067
Private Equity Investments
Kerzner International Holdings, Ltd., Cl A		9/27/06		7,000,000
Total Restricted Securities:			$	32,247,067
(Cost $75,581,541) (0.87% of Net Assets)

Baron Opportunity Fund

Name of Issuer	Acquisition Date		Value
Common Stocks
Vitacost.com		Various	$	1,576,750
Total Restricted Securities:			$	1,576,750
(Cost $4,243,836) (0.55% of Net Assets)

Baron Investment Funds Trust December 31, 2010

6. Transactions in “Affiliated” Companies¹

Baron Asset Fund

Name of Issuer	Balance of Shares Held on September 30, 2010		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held on December 31, 2010		Value December 31, 2010
Vail Resorts, Inc.		1,799,200		—		—		1,799,200	$	93,630,368
Total investments in “Affiliated” companies (3.21% of Net Assets)									$	93,630,368

Baron Growth Fund

Name of Issuer	Balance of Shares Held on September 30, 2010		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held on December 31, 2010		Value December 31, 2010
AMERIGROUP Corp.		2,625,000		—		125,000		2,500,000	$	109,800,000
Blue Nile, Inc.		1,105,000		—		45,000		1,060,000		60,483,600
Choice Hotels International, Inc.		3,000,000		—		—		3,000,000		114,810,000
DeVry, Inc.		3,625,000		—		—		3,625,000		173,927,500
Peet’s Coffee & Tea, Inc.		800,000		—		—		800,000		33,392,000
Vail Resorts, Inc.		1,900,000		—		—		1,900,000		98,876,000
Total investments in “Affiliated” companies (9.35% of Net Assets)									$	591,289,100

Baron Small Cap Fund

Name of Issuer	Balance of Shares Held on September 30, 2010		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held on December 31, 2010		Value December 31, 2010
Bravo Brio Restaurant Group, Inc.		—		1,250,000		—		1,250,000	$	23,962,500
Campus Crest Communities, Inc.		—		2,000,000		—		2,000,000		28,040,000
Chesapeake Lodging Trust		901,862		774,200		—		1,676,062		31,184,019
Coresite Realty Corp.		1,051,974		157,762		1,209,736		—		—
Great Wolf Resorts, Inc.		3,060,000		—		—		3,060,000		8,017,200
Huron Consulting Group, Inc.		1,250,000		—		—		1,250,000		33,062,500
Iconix Brand Group, Inc.		3,900,000		—		—		3,900,000		75,309,000
KEYW Holding Corp.		—		1,500,000		—		1,500,000		22,005,000
Mistras Group, Inc.		1,750,000		—		—		1,750,000		23,590,000
Orion Marine Group, Inc.2		1,400,000		—		400,000		1,000,000		—
Primo Water Corp.		—		1,037,000		—		1,037,000		14,735,770
Vitacost.com, Inc.		2,325,000		—		—		2,325,000		8,625,750
Total investments in “Affiliated” companies (7.27% of Net Assets)									$	268,531,739

¹ An “Affiliated” company, as defined in the 1940 Act, is a company in which a Fund held 5% or more of the company’s outstanding voting securities at any time during the three month ended December 31, 2010.

² As of December 31, 2010, no longer an affiliate.

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 (the “1940 Act”)) 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 1940 Act) 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

1. The certifications of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are exhibits to this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 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
	Chief Executive Officer
Date: February 23, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 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
	Chief Executive Officer

By:	/s/    PEGGY WONG
	Peggy Wong
	Treasurer and Chief Financial Officer
Date: February 23, 2011