A Mutual Fund That Favors Really Small Stocks
Baron Discovery gets off to a fast start with a portfolio that is loaded with micro caps.
The past year was a rough one for the little guys. While Standard & Poor’s 500-stock index returned 14%, the Russell 2000 index, which tracks small-company stocks, gained a mere 4%. Like most other small-stock funds, Baron Discovery (BDFFX) had trouble keeping up with the S&P 500. But the fund trumped the Russell index by nearly six percentage points.
*Annualized for three and five years. @Rankings exclude share classes of this fund with different fee structures or higher minimum initial investments. ** Closed to new investors. r maximum redemption fee. Sources: Morningstar Inc., Vanguard.