Skip to Content
US Videos

An Intriguing Small-Cap Option on Our Radar

Baron Discovery is off to a great start and features a distinct profile from its comanagers.


Christopher Franz: Led by an up-and-coming management duo, Baron Discovery is off to a strong start and is on our radar. Comanagers Laird Bieger and Randy Gwirtzman have led the fund since its late 2013 launch but are no stranger to small-caps. The two joined Baron Capital in the early 2000s as analysts, supporting Silver-rated Baron Small Cap and its manager Cliff Greenberg. While Greenberg has been a resource and mentor, Bieger and Gwirtzman have given their small-cap fund a distinct profile.

Baron Small Cap skews larger in-cap, with an average market cap near $6 billion, whereas this fund offers more pure small-cap exposure, with an average market capitalization below $2 billion, in line with the Russell 2000 Growth Index. Additionally, this fund is more willing to invest in earlier stage and riskier fare than its cousin, such biotech and pharmaceutical companies, so long as they meet Bieger and Gwirtzman's quality criteria.

Christopher Franz 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.