Baron Energy and Resources Fund
|
SCHEDULE
OF INVESTMENTS
|
|
MARCH 31,
2013 (UNAUDITED)
|
Shares
|
|
|
|
Cost
|
|
|
Value
|
|
|
Common Stocks (96.09%)
|
|
Energy (80.03%)
|
|
|
|
|
|
|
|
|
|
|
Oil &
Gas Drilling (6.22%)
|
|
|
|
|
|
|
|
|
1,175
|
|
Ensco plc, Cl A
2
|
|
$
|
63,395
|
|
|
$
|
70,500
|
|
1,441
|
|
Helmerich
& Payne, Inc.
|
|
|
82,241
|
|
|
|
87,469
|
|
3,267
|
|
Seadrill Partners,
LLC
2
|
|
|
74,857
|
|
|
|
90,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
220,493
|
|
|
|
248,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas Equipment & Services (26.96%)
|
|
|
|
|
|
|
|
|
4,553
|
|
C&J Energy
Services, Inc.
1
|
|
|
92,517
|
|
|
|
104,264
|
|
1,076
|
|
CARBO Ceramics,
Inc.
|
|
|
114,167
|
|
|
|
97,991
|
|
522
|
|
Core Laboratories
N.V.
2
|
|
|
59,130
|
|
|
|
71,994
|
|
4,791
|
|
Forum Energy
Technologies, Inc.
1
|
|
|
102,255
|
|
|
|
137,789
|
|
2,975
|
|
Halliburton
Co.
|
|
|
102,646
|
|
|
|
120,220
|
|
6,975
|
|
Key Energy
Services, Inc.
1
|
|
|
57,708
|
|
|
|
56,358
|
|
1,664
|
|
National Oilwell
Varco, Inc.
|
|
|
126,939
|
|
|
|
117,728
|
|
1,463
|
|
Oil States
International, Inc.
1
|
|
|
111,794
|
|
|
|
119,337
|
|
2,510
|
|
RigNet, Inc.
1
|
|
|
42,548
|
|
|
|
62,600
|
|
2,582
|
|
Subsea 7 SA
(Norway)
1,2,3
|
|
|
52,974
|
|
|
|
60,681
|
|
4,930
|
|
Superior Energy
Services, Inc.
1
|
|
|
125,805
|
|
|
|
128,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
988,483
|
|
|
|
1,076,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas Exploration & Production (22.45%)
|
|
|
|
|
|
|
|
|
5,229
|
|
Africa Oil
Corp. (Canada)
1,2
|
|
|
15,131
|
|
|
|
36,958
|
|
750
|
|
Anadarko Petroleum
Corp.
|
|
|
58,507
|
|
|
|
65,588
|
|
2,195
|
|
Bonanza Creek
Energy, Inc.
1
|
|
|
67,738
|
|
|
|
84,881
|
|
29,288
|
|
Borders & Southern Petroleum plc (United Kingdom)
1,2
|
|
|
24,438
|
|
|
|
7,899
|
|
1,256
|
|
Concho Resources,
Inc.
1
|
|
|
116,450
|
|
|
|
122,372
|
|
10,788
|
|
Exillon
Energy plc (Russian Federation)
1,2
|
|
|
43,434
|
|
|
|
25,079
|
|
19,652
|
|
Halcon Resources
Corp.
1
|
|
|
147,646
|
|
|
|
153,089
|
|
8,196
|
|
Kodiak Oil & Gas Corp.
1,2
|
|
|
76,629
|
|
|
|
74,502
|
|
1,993
|
|
Lundin Petroleum
AB (Sweden)
1,2
|
|
|
46,595
|
|
|
|
43,123
|
|
2,018
|
|
Oasis Petroleum,
Inc.
1
|
|
|
61,882
|
|
|
|
76,825
|
|
2,465
|
|
SM Energy
Co.
|
|
|
155,463
|
|
|
|
145,977
|
|
1,626
|
|
Southwestern
Energy Co.
1
|
|
|
52,558
|
|
|
|
60,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
866,471
|
|
|
|
896,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas Refining & Marketing (2.85%)
|
|
|
|
|
|
|
|
|
391
|
|
Marathon Petroleum Corp.
|
|
|
33,658
|
|
|
|
35,034
|
|
665
|
|
PBF Energy,
Inc.
|
|
|
27,319
|
|
|
|
24,718
|
|
928
|
|
Tesoro Corp.
|
|
|
53,428
|
|
|
|
54,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114,405
|
|
|
|
114,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas Storage & Transportation (21.55%)
|
|
|
|
|
|
|
|
|
2,057
|
|
Golar LNG
Ltd.
2
|
|
|
85,558
|
|
|
|
76,027
|
|
1,272
|
|
Golar LNG
Partners L.P.
2
|
|
|
35,947
|
|
|
|
41,976
|
|
3,742
|
|
MPLX LP
|
|
|
91,875
|
|
|
|
140,138
|
|
2,751
|
|
Rose Rock
Midstream L.P.
|
|
|
64,352
|
|
|
|
109,077
|
|
4,152
|
|
Susser Petroleum
Partners LP
|
|
|
97,093
|
|
|
|
134,940
|
|
1,686
|
|
Targa Resources
Corp.
|
|
|
72,641
|
|
|
|
114,581
|
|
2,483
|
|
Tesoro Logistics
LP
|
|
|
93,680
|
|
|
|
134,007
|
|
2,089
|
|
Western Gas
Equity Partners LP
|
|
|
53,301
|
|
|
|
71,486
|
|
654
|
|
Western Gas
Partners LP
|
|
|
28,263
|
|
|
|
38,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
622,710
|
|
|
|
861,086
|
|
|
|
|
|
|
|
|
|
|
Total Energy
|
|
|
2,812,562
|
|
|
|
3,197,672
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
Cost
|
|
|
Value
|
|
|
Common Stocks (continued)
|
|
Industrials (8.98%)
|
|
|
|
|
|
|
|
|
|
|
Construction & Engineering (2.26%)
|
|
|
|
|
|
|
|
|
4,091
|
|
Primoris Services
Corp.
|
|
$
|
81,660
|
|
|
$
|
90,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction & Farm Machinery & Heavy Trucks (1.18%)
|
|
|
|
|
|
|
|
|
794
|
|
Joy Global,
Inc.
|
|
|
60,427
|
|
|
|
47,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical Components & Equipment (0.85%)
|
|
|
|
|
|
|
|
|
842
|
|
Polypore International,
Inc.
1
|
|
|
32,578
|
|
|
|
33,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
Machinery (2.36%)
|
|
|
|
|
|
|
|
|
1,176
|
|
Chart Industries,
Inc.
1
|
|
|
71,106
|
|
|
|
94,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors (2.33%)
|
|
|
|
|
|
|
|
|
2,826
|
|
MRC Global,
Inc.
1
|
|
|
64,896
|
|
|
|
93,060
|
|
|
|
|
|
|
|
|
|
|
Total Industrials
|
|
|
310,667
|
|
|
|
358,695
|
|
|
|
|
|
|
|
|
|
|
|
Materials (7.08%)
|
|
|
|
|
|
|
|
|
|
|
Diversified Metals & Mining (2.59%)
|
|
|
|
|
|
|
|
|
1,012
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
39,517
|
|
|
|
33,497
|
|
1,812
|
|
Globe Specialty
Metals, Inc.
|
|
|
25,065
|
|
|
|
25,223
|
|
2,751
|
|
SunCoke Energy,
Inc.
1
|
|
|
45,639
|
|
|
|
44,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,221
|
|
|
|
103,644
|
|
|
|
Fertilizers & Agricultural Chemicals (0.96%)
|
|
|
|
|
|
|
|
|
10,176
|
|
Agrinos AS
(Mexico)
1,2
|
|
|
58,502
|
|
|
|
38,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forest
Products (1.10%)
|
|
|
|
|
|
|
|
|
1,297
|
|
Boise Cascade
Co.
1
|
|
|
27,392
|
|
|
|
44,020
|
|
|
|
|
Gold (0.80%)
|
|
|
|
|
|
|
|
|
3,370
|
|
Sandstorm
Gold Ltd.
1,2
|
|
|
40,156
|
|
|
|
31,847
|
|
|
|
|
Specialty
Chemicals (0.43%)
|
|
|
|
|
|
|
|
|
229
|
|
Cytec Industries,
Inc.
|
|
|
13,701
|
|
|
|
16,964
|
|
|
|
|
Steel (1.20%)
|
|
|
|
|
|
|
|
|
2,300
|
|
SunCoke Energy
Partners LP
1
|
|
|
44,317
|
|
|
|
48,070
|
|
|
|
|
|
|
|
|
|
|
Total Materials
|
|
|
294,289
|
|
|
|
282,874
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
|
3,417,518
|
|
|
|
3,839,241
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount
|
|
|
|
|
|
|
|
|
|
Short Term Investments (3.13%)
|
|
|
|
|
|
|
|
|
|
$124,934
|
|
Repurchase
Agreement with Fixed Income Clearing Corp., dated 3/28/2013, 0.01% due 4/1/2013;
Proceeds at maturity - $124,934; (Fully collateralized by $130,000 U.S. Treasury
Note, 0.625% due 11/30/2017; Market value - $130,000)
3
|
|
|
124,934
|
|
|
|
124,934
|
|
|
|
|
|
|
|
|
|
|
Total Investments (99.22%)
|
|
$
|
3,542,452
|
|
|
|
3,964,175
|
|
|
|
|
|
|
|
|
|
Cash and Other Assets Less Liabilities (0.78%)
|
|
|
|
|
|
|
31,269
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
$
|
3,995,444
|
|
|
|
|
|
|
|
|
|
Retail Shares (Equivalent to $10.56 per share based on 231,510 shares outstanding)
|
|
|
|
|
|
$
|
2,444,439
|
|
|
|
|
|
|
|
|
|
Institutional Shares (Equivalent to $10.59 per share based on 146,492 shares outstanding)
|
|
|
|
|
|
$
|
1,551,005
|
|
|
|
|
|
|
|
|
|
%
|
|
Represents
percentage of net assets.
|
1
|
|
Non-income
producing securities.
|
2
|
|
Foreign corporation.
|
3
|
|
Level 2 security.
See Note 4 regarding Fair Value Measurements.
|
|
|
|
|
|
All securities
are Level 1, unless otherwise noted.
|
See Notes to Schedules of Investments.
|
Baron Global Advantage Fund
|
SCHEDULE
OF INVESTMENTS
|
|
MARCH 31,
2013 (UNAUDITED)
|
Shares
|
|
|
|
Cost
|
|
|
Value
|
|
|
Common Stocks (99.19%)
|
|
|
|
|
|
|
|
|
|
Brazil (6.72%)
|
|
|
|
|
|
|
|
|
14,925
|
|
BM&FBOVESPA SA
|
|
$
|
82,055
|
|
|
$
|
100,743
|
|
6,011
|
|
Cetip
SA - Mercados Organizados
|
|
|
77,560
|
|
|
|
71,391
|
|
1,320
|
|
M. Dias Branco
SA
|
|
|
37,607
|
|
|
|
52,095
|
|
|
|
|
|
|
|
|
|
|
Total Brazil
|
|
|
197,222
|
|
|
|
224,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada (3.09%)
|
|
|
|
|
|
|
|
|
2,824
|
|
Brookfield
Asset Management, Inc., Cl A
|
|
|
96,385
|
|
|
|
103,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China (3.82%)
|
|
|
|
|
|
|
|
|
520
|
|
Baidu, Inc.,
ADR
1
|
|
|
64,751
|
|
|
|
45,604
|
|
3,236
|
|
New
Oriental Education & Technology Group, ADR
|
|
|
73,889
|
|
|
|
58,248
|
|
1,405
|
|
Youku Tudou,
Inc.
1
|
|
|
33,525
|
|
|
|
23,562
|
|
|
|
|
|
|
|
|
|
|
Total China
|
|
|
172,165
|
|
|
|
127,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denmark (1.37%)
|
|
|
|
|
|
|
|
|
1,895
|
|
DSV A/S
3
|
|
|
43,064
|
|
|
|
45,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany (2.78%)
|
|
|
|
|
|
|
|
|
1,058
|
|
BASF SE
|
|
|
83,704
|
|
|
|
92,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hong Kong (4.03%)
|
|
|
|
|
|
|
|
|
975
|
|
Jardine Matheson
Holdings Ltd.
|
|
|
49,872
|
|
|
|
63,473
|
|
26,622
|
|
Wynn Macau
Ltd.
1
|
|
|
78,458
|
|
|
|
70,820
|
|
|
|
|
|
|
|
|
|
|
Total Hong Kong
|
|
|
128,330
|
|
|
|
134,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indonesia (8.31%)
|
|
|
|
|
|
|
|
|
389,586
|
|
Global Mediacom
Tbk PT
|
|
|
84,061
|
|
|
|
93,212
|
|
177,358
|
|
MNC Sky Vision
Tbk PT
1
|
|
|
39,149
|
|
|
|
40,153
|
|
23,747
|
|
Sarana Menara
Nusantara Tbk PT
1
|
|
|
52,097
|
|
|
|
63,537
|
|
128,836
|
|
Tower Bersama
Infrastructure Tbk PT
1
|
|
|
43,064
|
|
|
|
80,212
|
|
|
|
|
|
|
|
|
|
|
Total Indonesia
|
|
|
218,371
|
|
|
|
277,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ireland (0.90%)
|
|
|
|
|
|
|
|
|
15,085
|
|
Velti plc
1,2
|
|
|
95,413
|
|
|
|
29,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Israel (1.92%)
|
|
|
|
|
|
|
|
|
1,361
|
|
Check
Point Software Technologies Ltd.
1
|
|
|
61,645
|
|
|
|
63,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico (0.30%)
|
|
|
|
|
|
|
|
|
2,682
|
|
Agrinos AS
1
|
|
|
20,694
|
|
|
|
10,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Netherlands (1.77%)
|
|
|
|
|
|
|
|
|
878
|
|
ASML Holding
N.V.
|
|
|
55,019
|
|
|
|
59,053
|
|
|
|
|
|
|
|
|
|
|
|
Norway (1.73%)
|
|
|
|
|
|
|
|
|
2,083
|
|
Seadrill Partners, LLC
|
|
|
45,826
|
|
|
|
57,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom (4.76%)
|
|
|
|
|
|
|
|
|
6,069
|
|
ARM Holdings
plc
|
|
|
48,217
|
|
|
|
84,930
|
|
1,436
|
|
Intertek Group
plc
|
|
|
59,577
|
|
|
|
74,033
|
|
|
|
|
|
|
|
|
|
|
Total United Kingdom
|
|
|
107,794
|
|
|
|
158,963
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
|
Value
|
|
|
Common Stocks (continued)
|
|
|
|
|
|
|
|
|
|
United States (57.69%)
|
|
|
|
|
|
|
|
|
2,083
|
|
Acxiom Corp.
1
|
|
$
|
40,652
|
|
|
$
|
42,493
|
|
474
|
|
Amazon.com,
Inc.
1
|
|
|
107,779
|
|
|
|
126,316
|
|
258
|
|
Apple, Inc.
|
|
|
146,462
|
|
|
|
114,199
|
|
2,578
|
|
CyrusOne,
Inc.
|
|
|
48,982
|
|
|
|
58,882
|
|
451
|
|
Equinix, Inc.
1
|
|
|
73,330
|
|
|
|
97,556
|
|
2,984
|
|
Facebook,
Inc., Cl A
1
|
|
|
90,841
|
|
|
|
76,331
|
|
2,354
|
|
Golar LNG
Ltd.
|
|
|
83,449
|
|
|
|
87,004
|
|
209
|
|
Google, Inc.,
Cl A
1
|
|
|
133,136
|
|
|
|
165,952
|
|
5,580
|
|
Greenlight
Capital Re Ltd., Cl A
1
|
|
|
136,086
|
|
|
|
136,431
|
|
1,727
|
|
HomeAway,
Inc.
1
|
|
|
44,967
|
|
|
|
56,128
|
|
2,117
|
|
ICICI Bank
Limited, ADR
|
|
|
69,519
|
|
|
|
90,819
|
|
1,773
|
|
Illumina,
Inc.
1
|
|
|
77,685
|
|
|
|
95,742
|
|
145
|
|
MasterCard,
Inc., Cl A
|
|
|
64,694
|
|
|
|
78,464
|
|
566
|
|
Monsanto Co.
|
|
|
43,298
|
|
|
|
59,787
|
|
2,044
|
|
MPLX LP
|
|
|
51,531
|
|
|
|
76,548
|
|
141
|
|
priceline.com,
Inc.
1
|
|
|
99,522
|
|
|
|
96,998
|
|
1,684
|
|
Susser Petroleum
Partners LP
|
|
|
37,993
|
|
|
|
54,730
|
|
1,521
|
|
Tesoro Logistics
LP
|
|
|
68,289
|
|
|
|
82,088
|
|
1,996
|
|
TRI Pointe
Homes, Inc.
1
|
|
|
36,532
|
|
|
|
40,219
|
|
769
|
|
Verisk Analytics,
Inc., Cl A
1
|
|
|
37,775
|
|
|
|
47,393
|
|
473
|
|
Visa, Inc.,
Cl A
|
|
|
57,581
|
|
|
|
80,334
|
|
2,537
|
|
Xoom Corp.
1
|
|
|
40,592
|
|
|
|
57,945
|
|
1,422
|
|
YUM! Brands,
Inc.
|
|
|
99,510
|
|
|
|
102,299
|
|
|
|
|
|
|
|
|
|
|
Total United States
|
|
|
1,690,205
|
|
|
|
1,924,658
|
|
|
|
|
|
|
|
|
|
|
Total Investments (99.19%)
|
|
$
|
3,015,837
|
|
|
|
3,309,013
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Other Assets Less Liabilities (0.81%)
|
|
|
|
|
|
|
27,090
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
$
|
3,336,103
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Equivalent to $10.62 per share based on 146,122 shares outstanding)
|
|
|
|
|
|
$
|
1,551,279
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Shares (Equivalent to $10.64 per share based on 167,782 shares outstanding)
|
|
|
|
|
|
$
|
1,784,824
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
Represents
percentage of net assets.
|
1
|
|
Non-income
producing securities.
|
2
|
|
The value
on loan at March 31, 2013 amounted to $29,700 which represents 0.89% of net assets. See Note
2c regarding Securities Lending.
|
3
|
|
Level 2 security.
See Note 4 regarding Fair Value Measurements.
|
ADR
|
|
American Depositary
Receipt.
|
|
|
|
|
|
All securities
are Level 1, unless otherwise noted.
|
|
Summary
of Investments by Sector
|
|
Percentage
|
|
as of March
31, 2013
|
|
of Net Assets
|
|
|
Information
Technology
|
|
|
30.6
|
%
|
Consumer Discretionary
|
|
|
20.5
|
|
Financials
|
|
|
16.8
|
|
Energy
|
|
|
10.7
|
|
Industrials
|
|
|
6.9
|
|
Materials
|
|
|
4.9
|
|
Telecommunication
Services
|
|
|
4.3
|
|
Health Care
|
|
|
2.9
|
|
Consumer Staples
|
|
|
1.6
|
|
Cash and Cash
Equivalents
|
|
|
0.8
|
|
|
|
|
|
100.0
|
%
|
|
See Notes to Schedules of Investments.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Baron Select Funds (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 Delaware statutory trust on April 30, 2003. The Trust currently offers seven series (individually, a Fund and
collectively, the Funds): Baron Partners Fund, Baron Focused Growth Fund, Baron Real Estate Fund and Baron Energy and Resources Fund, which are
non-diversified; and Baron International Growth Fund, Baron Emerging Markets Fund, and Baron Global Advantage Fund, which are diversified. The
Funds investment goal is to seek capital appreciation. Baron Partners Fund may employ leverage by borrowing money and using it for the purchase
of additional securities. Borrowing for investment increases both investment opportunity and investment risk. Baron International Growth Fund, Baron
Emerging Markets Fund and Baron Global Advantage Fund invest their assets primarily in non-U.S. companies. Baron Real Estate Fund invests its assets
primarily in U.S. and non-U.S. real estate and real estate-related companies. Baron Energy and Resources Fund invests its assets primarily in common stock
of U.S. and non-U.S. energy and resources companies and related companies and energy and resources master limited partnerships (MLPs) of any market
capitalization.
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. Each Funds
investment income, realized and unrealized gains or losses on investments 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.
Baron Partners Fund was organized originally as a limited partnership in January 1992, under the laws of the State of Delaware. Effective as of the close of
business on April 30, 2003, the predecessor partnership was reorganized into a Delaware statutory trust. Baron Partners Fund commenced operations on
April 30, 2003 with a contribution of assets and liabilities, including securities-in-kind from the predecessor partnership.
Baron Focused Growth Fund was organized originally as a limited partnership in May 1996, under the laws of the State of Delaware. Effective as of the
close of business on June 30, 2008, the predecessor partnership was reorganized into a series of the Trust. Baron Focused Growth Fund commenced
operations on June 30, 2008 with a contribution of assets and liabilities, including securities-in-kind from the predecessor partnership.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Funds. The policies are in conformity with accounting principles generally
accepted in the United States of America (GAAP).
a) Security Valuation.
The Funds share prices or net asset values are calculated as of the close of the regular trading session (usually 4 p.m. E.T.) on the
New York Stock Exchange (NYSE) on any day on which the NYSE is open. 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 BAMCO, Inc.s (the Adviser) 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 60 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 60 days or less are valued at amortized cost, which approximates fair value.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (Continued)
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 markets and 4
p.m. E.T. will, in its judgment, materially affect the value of some or all of the Funds non-U.S. 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 an outside pricing service which utilizes a systematic
methodology 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 days opening prices in the same markets, and adjusted prices. Other mutual funds may adjust the prices of their securities by different amounts.
b) Foreign Currency Translations.
Values of assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the price of such
currencies at the time the net asset value is determined. Purchases and sales of investments and dividend income are converted at the prevailing rate of
exchange on the respective dates of such transactions. Net realized gain (loss) on foreign currency transactions include gain (loss) arising from the
fluctuation in the exchange rates between trade and settlement dates on security transactions and currency gain (loss) between the accrual and payment dates
on dividends and foreign withholding taxes. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange
rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments and foreign currency transactions. The Funds may invest in foreign securities and foreign currency transactions that
may involve risks not associated with domestic investments as a result of the level of governmental supervision and regulation of foreign securities markets
and the possibility of political or economic instability, among others.
c) 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 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 March 31, 2013, Baron Global Advantage Fund had securities on loan with a value of $29,700 and held $30,000
of cash as collateral for this loan.
d) Short Sales.
The Funds may sell securities short. When the Funds sell short, the Funds record a liability for securities sold short and record an asset equal
to the proceeds received. The amount of the liability is subsequently marked to market to reflect the market value of the securities sold short. The Funds may
incur dividend expense if a security that has been sold short declares a dividend. The Funds are exposed to market risk based on the amount, if any, that the
market value of the securities sold short exceeds the proceeds received. The Funds are required to maintain collateral in a segregated account for the
outstanding short sales. Short sales involve elements of market risks and exposure to loss in excess of the amount recognized in the Schedules of Investments. The Funds risk of loss in these types of short sales is unlimited because there is no limit to the cost of replacing the borrowed security. During
the three months ended March 31, 2013, the Funds did not engage in short selling.
e) 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 102% 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.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (Continued)
f) Fund Concentration.
Certain of the Funds hold relatively concentrated portfolios that may contain fewer securities or
industries than the portfolios of other mutual funds. Holding a relatively concentrated portfolio may increase the risk that the value of a Fund could decrease
because of the poor performance of one or a few investments. Additionally, these Funds may encounter some difficulty in liquidating securities of
concentrated positions.
3. RESTRICTED SECURITIES
At March 31, 2013, 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 March 31, 2013, 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 Partners Fund
|
Name of Issuer
|
|
|
Acquisition
Date(s)
|
|
|
|
Value
|
Private Equity Investments
|
|
|
|
|
|
|
Kerzner International Holdings Ltd., Cl A
|
|
9/27/2006
|
|
|
$
|
6,201,000
|
Windy City Investments Holdings, L.L.C.
|
|
11/13/2007-1/27/2011
|
|
|
|
28,194,364
|
Total Restricted Securities:
|
|
|
|
|
$
|
34,395,364
|
(Cost $80,134,888)
(3.36% of Net Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baron International Growth Fund
|
Name of
Issuer
|
|
|
Acquisition
Date
|
|
|
|
Value
|
Private Equity Investments
|
|
|
|
|
|
|
Better Place, Inc., Series C Preferred
|
|
12/1/2011
|
|
|
$
|
2,423
|
(Cost $275,001) (0.01% of Net Assets)
|
|
|
|
|
|
|
See Schedules
of Investments for cost of individual securities.
4. FAIR VALUE MEASUREMENTS
Fair value is defined by 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.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (Continued)
|
|
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 Funds 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 Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which
may not be reliably priced. Under these procedures, the Funds primarily employ a market-based approach, which may use related or comparable assets or
liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment.
The Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair
value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of
valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
The following is a summary of
the inputs used as of March 31, 2013 in valuing the Funds investments carried at fair value:
|
|
|
Baron Partners Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
1,205,616,933
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,205,616,933
|
Private Equity Investments
|
|
|
|
|
|
|
|
|
|
|
34,395,364
|
|
|
|
34,395,364
|
Total Investments
|
|
$
|
1,205,616,933
|
|
|
$
|
|
|
|
$
|
34,395,364
|
|
|
$
|
1,240,012,297
|
Transfers between Levels 1, 2 or 3, if any, are recognized at ending value on March 31, 2013. There have been no transfers in and out of Level 1, 2 or
3 fair value measurements for the Fund for the three month period ended March 31, 2013.
|
|
|
Baron Focused Growth Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
134,815,368
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
134,815,368
|
Short Term Investments
|
|
|
|
|
|
|
12,498,563
|
|
|
|
|
|
|
|
12,498,563
|
Total Investments
|
|
$
|
134,815,368
|
|
|
$
|
12,498,563
|
|
|
$
|
|
|
|
$
|
147,313,931
|
Transfers between Levels 1, 2 or 3, if any, are recognized at ending value on March 31, 2013. There have been no transfers in and out of Level 1, 2 or
3 fair value measurements for the Fund for the three month period ended March 31, 2013.
See Schedules of Investments for additional detailed categorizations.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (Continued)
|
|
|
Baron International Growth Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
51,333,766
|
|
|
$
|
1,140,622
|
|
|
$
|
|
|
|
$
|
52,474,388
|
Private Equity Investments
|
|
|
|
|
|
|
|
|
|
|
2,423
|
|
|
|
2,423
|
Short Term Investments
|
|
|
|
|
|
|
1,582,327
|
|
|
|
|
|
|
|
1,582,327
|
Total Investments
|
|
$
|
51,333,766
|
|
|
$
|
2,722,949
|
|
|
$
|
2,423
|
|
|
$
|
54,059,138
|
The fair value of Level 2 investments at December 31, 2012 was $31,732,361. $28,699,174 was transferred out of Level 2 into Level 1 at March 31, 2013
as a result of no longer adjusting closing prices for certain securities (as described in Note 2a), due to significant market movements between the time at
which the Fund valued its securities and the earlier closing of foreign markets. It is the Funds policy to recognize transfers in and transfers out at the fair
value as of the end of the period.
|
|
|
Baron Real Estate Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
375,220,158
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
375,220,158
|
Short Term Investments
|
|
|
|
|
|
|
31,478,119
|
|
|
|
|
|
|
|
31,478,119
|
Total Investments
|
|
$
|
375,220,158
|
|
|
$
|
31,478,119
|
|
|
$
|
|
|
|
$
|
406,698,277
|
Transfers between Levels 1, 2 or 3, if any, are recognized at ending value on March 31, 2013. There have been no transfers in and out of Level
1, 2 or 3 fair value measurements for the Fund for the three month period ended March 31, 2013.
|
|
|
Baron Emerging Markets Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
16,644,529
|
|
|
$
|
820,868
|
|
|
$
|
|
|
|
$
|
17,465,397
|
Warrants
|
|
|
1,491
|
|
|
|
|
|
|
|
|
|
|
|
1,491
|
Short Term Investments
|
|
|
|
|
|
|
2,129,015
|
|
|
|
|
|
|
|
2,129,015
|
Total Investments
|
|
$
|
16,646,020
|
|
|
$
|
2,949,883
|
|
|
$
|
|
|
|
$
|
19,595,903
|
The fair value of Level 2 investments at December 31, 2012 was $4,441,324. $6,531,394 was transferred out of Level 2 into Level 1 at March 31,
2013 as a result of no longer adjusting closing prices for certain securities (as described in Note 2a), due to significant market movements
between the time at which the Fund valued its securities and the earlier closing of foreign markets. It is the Funds policy to recognize transfers in
and transfers out at the fair value as of the end of the period.
|
|
|
Baron Energy and Resources Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
3,778,560
|
|
|
$
|
60,681
|
|
|
$
|
|
|
|
$
|
3,839,241
|
Short Term Investments
|
|
|
|
|
|
|
124,934
|
|
|
|
|
|
|
|
124,934
|
Total Investments
|
|
$
|
3,778,560
|
|
|
$
|
185,615
|
|
|
$
|
|
|
|
$
|
3,964,175
|
The fair value of Level 2 investments at December 31, 2012 was $303,006. $68,202 was transferred out of Level 2 into Level 1 at March 31, 2013 as
a result of no longer adjusting closing prices for certain securities (as described in Note 2a), due to significant market movements between the time at
which the Fund valued its securities and the earlier closing of foreign markets. It is the Funds policy to recognize transfers in and transfers out at the
fair value as of the end of the period.
See Schedules of Investments for additional detailed categorizations.
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)
(Continued)
|
|
|
Baron Global Advantage Fund
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
Significant
|
|
|
Significant
|
|
|
|
|
|
|
|
Active Markets for
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
Identical Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
Description
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
|
Total
|
Common Stocks
|
|
$
|
3,263,154
|
|
|
$
|
45,859
|
|
|
$
|
|
|
|
$
|
3,309,013
|
Total Investments
|
|
$
|
3,263,154
|
|
|
$
|
45,859
|
|
|
$
|
|
|
|
$
|
3,309,013
|
The fair value of Level 2 investments at December 31, 2012 was $654,163. $618,389 was transferred out of Level 2 into Level 1 at March 31,
2013 as a result of no longer adjusting closing prices for certain securities (as described in Note 2a), due to significant market movements
between the time at which the Fund valued its securities and the earlier closing of foreign markets. It is the Funds policy to recognize transfers in
and transfers out at the fair value as of the end of the period.
See Schedules of Investments for additional detailed categorizations.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
|
|
Baron Partners Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation
|
|
|
|
Balance as of
|
|
|
Accrued
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
Transfers
|
|
|
|
Transfers
|
|
|
|
|
|
|
|
(Depreciation) from
|
|
|
|
December 31,
|
|
|
Premiums/
|
|
|
Net Realized
|
|
|
Appreciation
|
|
|
|
|
|
|
|
|
|
|
Into
|
|
|
|
Out of
|
|
|
|
Balance as of
|
|
|
|
Investments still held
|
|
Investments in Securities
|
|
2012
|
|
|
Discounts
|
|
|
Gain (Loss)
|
|
|
(Depreciation)
|
|
|
Purchases
|
|
|
|
Sales
|
|
|
|
Level 3
|
|
|
|
Level 3
|
|
|
|
March 31, 2013
|
|
|
|
at March 31, 2013
|
|
Private Equity Investments
Consumer Discretionary
|
|
$
|
5,265,000
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
936,000
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
6,201,000
|
|
|
|
$
|
936,000
|
|
Financials
|
|
|
23,646,886
|
|
|
|
|
|
|
|
|
|
|
|
4,547,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,194,364
|
|
|
|
|
4,547,478
|
|
Total
|
|
$
|
28,911,886
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
5,483,478
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
34,395,364
|
|
|
|
$
|
5,483,478
|
|
|
|
Baron International Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation
|
|
|
|
Balance as of
|
|
|
Accrued
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
Transfers
|
|
|
|
Transfers
|
|
|
|
|
|
|
|
(Depreciation) from
|
|
|
|
December 31,
|
|
|
Premiums/
|
|
|
Net Realized
|
|
|
Appreciation
|
|
|
|
|
|
|
|
|
|
|
Into
|
|
|
|
Out of
|
|
|
|
Balance as of
|
|
|
|
Investments still held
|
|
Investments in Securities
|
|
2012
|
|
|
Discounts
|
|
|
Gain (Loss)
|
|
|
(Depreciation)
|
|
|
Purchases
|
|
|
|
Sales
|
|
|
|
Level 3
|
|
|
|
Level 3
|
|
|
|
March 31, 2013
|
|
|
|
at March 31, 2013
|
|
Private Equity Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilities
|
|
$
|
2,423
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
2,423
|
|
|
|
$
|
|
|
Total
|
|
$
|
2,423
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
2,423
|
|
|
|
$
|
|
|
Baron Select Funds Trust
|
March 31, 2013
|
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)
(Continued)
Significant unobservable valuation inputs developed by the Adviser for significant (greater than 1% of net assets) Level 3 investments as of March
31, 2013 were as follows:
Baron Partners Fund
|
Sector
|
Company
|
Fair Value as of March 31, 2013
|
Valuation Technique
|
Unobservable Input
|
Weighted
Average used
on March 31, 2013
|
Range used on
March 31, 2013
|
Private Equity
Investments:
Financials
|
Windy City
Investments
Holdings, L.L.C.
|
$28,194,364
|
Combination of
Market Comparables
and Option Pricing
methods
|
Estimated volatility of the
returns of the enterprise
value
1
|
6.34%
|
6.34%
|
Discount for lack of marketability
|
4.58%
|
4.58%
|
EV/Run Rate EBITDA Multiple
2
|
9.67x
|
7.2x to 11.0x
|
Adjustment to the EBITDA Multiple
due to leverage
2
|
10.6%
|
10.6%
|
Change in the composite equity index
of comparable companies
|
0.86%
|
-1.54% to 1.38%
|
1
|
|
The volatility was derived using the historical returns of the publicly traded debt of Nuveen Investments, Inc. and the historical returns of the equity of
comparable public companies.
|
2
|
|
The multiple was derived as a simple average of the multiples of comparable companies. The derived EBITDA multiple was increased by 10.6% to
9.67x. This increase adjusts for leverage, as Nuveen Investments, Inc. is more levered than its comparable companies.
|
A significant change in the EV/EBITDA multiple ratio may result in a directionally similar significant change in the fair value measurement, while a
significant change in the discount for lack of marketability and equity index of comparable companies may not result in a materially higher or lower fair
value measurement.
5. COST OF INVESTMENTS FOR INCOME TAX PURPOSES
As of March 31, 2013, the components of net assets on a tax basis were substantially as follows:
|
|
|
|
|
|
Baron
|
|
|
Baron
|
|
|
|
|
|
|
Baron
|
|
|
Baron
|
|
|
Baron
|
|
|
|
Baron
|
|
|
Focused
|
|
|
International
|
|
|
Baron
|
|
|
Emerging
|
|
|
Energy and
|
|
|
Global
|
|
|
|
Partners
|
|
|
Growth
|
|
|
Growth
|
|
|
Real Estate
|
|
|
Markets
|
|
|
Resources
|
|
|
Advantage
|
|
|
|
Fund
|
|
|
Fund
|
|
|
Fund
|
|
|
Fund
|
|
|
Fund
|
|
|
Fund
|
|
|
Fund
|
|
Cost of investments
|
|
$
|
630,909,708
|
|
|
$
|
98,356,634
|
|
|
$
|
41,040,037
|
|
|
$
|
370,346,255
|
|
|
$
|
18,246,667
|
|
|
$
|
3,542,452
|
|
|
$
|
3,015,837
|
|
Unrealized
appreciation
|
|
$
|
654,842,113
|
|
|
$
|
49,802,539
|
|
|
$
|
15,654,016
|
|
|
$
|
37,579,533
|
|
|
$
|
2,291,540
|
|
|
$
|
565,680
|
|
|
$
|
477,167
|
|
Unrealized
depreciation
|
|
|
(45,739,524
|
)
|
|
|
(845,242
|
)
|
|
|
(2,634,915
|
)
|
|
|
(1,227,511
|
)
|
|
|
(942,304
|
)
|
|
|
(143,957
|
)
|
|
|
(183,991
|
)
|
Net unrealized appreciation
|
|
$
|
609,102,589
|
|
|
$
|
48,957,297
|
|
|
$
|
13,019,101
|
|
|
$
|
36,352,022
|
|
|
$
|
1,349,236
|
|
|
$
|
421,723
|
|
|
$
|
293,176
|
|
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 U.S. Securities and Exchange Commission's website, www.sec.gov.
Item 2.
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Controls
and Procedures.
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(a)
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The Registrants principal executive officer and principal financial officer have concluded
that the Registrants 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.
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(b)
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There were
no changes in the Registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrants last fiscal quarter that have materially affected, or are reasonably likely
to materially affect, the Registrants internal control over financial reporting.
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Item 3.
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Exhibits
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1.
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The certifications
of the Registrant as required by Rule 30a-2(a) under the 1940 Act are exhibits to
this report.
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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.
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Baron Select Funds
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By:
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/s/ RONALD
BARON
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Ronald
Baron
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Chief
Executive Officer
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Date:
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May 21, 2013
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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.
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By:
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/s/ RONALD
BARON
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Ronald
Baron
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Chief
Executive Officer
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By:
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/s/ PEGGY WONG
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Peggy
Wong
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Treasurer and Chief Financial Officer
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Date
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May 21, 2013
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