The Baron Capital Blueprint: An Active Solution For True Growth

• The fund uses a 'First Principles' framework that deconstructs potential investments to basic components, focusing on intrinsic value, visionary leadership, and strong competitive moats to separate durable growth companies from hype-driven stocks.
• Current portfolio holdings (as of February 17) include Tesla, Space Exploration Technologies, MSCI, Spotify, and Hyatt Hotels, diversified across sectors and market capitalizations.
• Baron Capital maintains an average holding period of six years across strategies, with RONB projected to hold positions even longer to allow compounding to drive long-term growth outperformance.

Summary: Baron Capital's Active Growth Strategy Through RONB ETF

Baron Capital is positioning its actively managed ETF (ticker: RONB) as a solution for investors navigating the challenging 2026 market landscape shaped by AI-driven disruption. The fund is managed by Ron Baron, David Baron, and Michael Baron, utilizing the firm's distinctive "First Principles" investment approach.

Investment Philosophy

The "First Principles" framework deconstructs potential investments to their fundamental components, focusing on three key criteria:

• Intrinsic value: Companies valued according to long-term horizons
• People: Exceptional founders and management teams driving innovation
• Strong moats: Sustainable competitive advantages across economic cycles

This methodology aims to identify genuine growth companies based on fundamentals and secular trends rather than hype, particularly crucial given AI-related market uncertainty.

Portfolio Composition

As of February 17, RONB holdings include Tesla, SpaceX, MSCI, Spotify, and Hyatt Hotels, with diversification across sectors and market capitalizations. The fund emphasizes a high-conviction, concentrated approach built on deep research.

Active Management Edge

Baron Capital's long-term investment horizon sets RONB apart from passive alternatives. The firm maintains an average holding period of six years across strategies, with RONB projected to hold positions even longer. Portfolio managers often research companies for years before investing, allowing compounding to drive wealth creation.

Market Context

Founded in 1982, Baron Capital leverages decades of experience in growth investing. The firm's approach is particularly relevant in 2026 as rapid market changes and AI innovation make identifying sustainable growth leaders increasingly difficult.

The fund targets investors seeking active management with original research capabilities and patience to capture long-term growth outperformance through differentiated businesses led by visionary leadership.