Skip to Content
US Videos

This Small-Cap Fund Has a Long-Term Mindset

Baron Small Cap favors steady growers that can be held for a long time--a strategy that has helped the fund regularly outperform its benchmark as well as its peers.


Laura Lallos: When people think of Baron funds, they probably think of firm founder Ron Baron and the flagship fund, Baron Growth (BGRFX). That fund is a Morningstar Medalist, but there's another fund in the family that also earns a Bronze rating, and that's Baron Small Cap (BSCFX).

Baron Small Cap has been run by Cliff Greenberg since he joined the firm in 1997, so a long track record. Greenberg is now the director of research there, and he has played a key role as the firm has grown. He has helped to build an investment team that has stayed very focused on Baron's long-term approach to growth. Now, that kind of long-term sensibility really does distinguish Baron Small Cap from other funds in the small-cap growth category. The fund's turnover was 20% at last count, and that compares with over 100% for many of the funds in that group.

Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.