Baron Discovery Five Year Return vs. One Year Return
| BDFUX Fund | USD 32.90 0.40 1.20% |
For Baron Discovery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Baron Discovery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Baron Discovery Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Baron Discovery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Baron Discovery Fund over time as well as its relative position and ranking within its peers.
Baron |
Baron Discovery One Year Return vs. Five Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Baron Discovery's current stock value. Our valuation model uses many indicators to compare Baron Discovery value to that of its competitors to determine the firm's financial worth. Baron Discovery Fund is fifth largest fund in five year return among similar funds. It also is fifth largest fund in one year return among similar funds reporting about 1.93 of One Year Return per Five Year Return. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Baron Discovery's earnings, one of the primary drivers of an investment's value.Baron One Year Return vs. Five Year Return
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
Baron Discovery |
| = | 10.36 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
One Year Return is the annualized return generated from holding a security for exactly 12 months. The measure is considered to be good short-term measures of fund performance. In other words, it represents the capital appreciation of fund investments over the last year. However when the market is volatile such as in recent years, One Year Return measure can be misleading.
Baron Discovery |
| = | 20.01 % |
Although One Year Fund Return indicator can give a sense of overall fund short-term potential, it is recommended to look at mid and long term return measure before selecting a particular fund or ETF. The great way to validate fund short-term performance is to compare it with other similar funds or ETFs for the same 12 months interval.
Baron One Year Return Comparison
Baron Discovery is fourth largest fund in one year return among similar funds.
Baron Discovery Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Baron Discovery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Baron Discovery will eventually generate negative long term returns. The profitability progress is the general direction of Baron Discovery's change in net profit over the period of time. It can combine multiple indicators of Baron Discovery, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The fund is a diversified fund that invests for the long term primarily in equity securities in the form of common stock of U.S. small-sized growth companies. The Adviser seeks to invest in businesses the adviser believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and an attractive valuation.
Baron Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Baron Discovery. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Baron Discovery position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Baron Discovery's important profitability drivers and their relationship over time.
| Five Year Return vs Year To Date Return | ||
| Three Year Return vs One Year Return | ||
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| Cash Position Weight vs One Year Return | ||
| Five Year Return vs Equity Positions Weight |
Use Baron Discovery in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Baron Discovery position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Baron Discovery will appreciate offsetting losses from the drop in the long position's value.Baron Discovery Pair Trading
Baron Discovery Fund Pair Trading Analysis
The ability to find closely correlated positions to Baron Discovery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Baron Discovery when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Baron Discovery - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Baron Discovery Fund to buy it.
The correlation of Baron Discovery is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Baron Discovery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Baron Discovery moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Baron Discovery can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Baron Discovery position
In addition to having Baron Discovery in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Tips ETFs Thematic Idea Now
Tips ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Tips ETFs theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Tips ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Baron Mutual Fund
To fully project Baron Discovery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Baron Discovery at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Baron Discovery's income statement, its balance sheet, and the statement of cash flows.
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