Baron Capital
In 1982, Ron Baron launched Baron Capital with just $100,000 and a tiny office. He hired two employees—one of whom has stayed with the firm for over 40 years.
What started as a small operation has grown into a $45 billion AUM investment firm known for its expertise in growth investing. Baron Capital is also famous for its annual conference, which features big-name performers like Elton John, the Beach Boys, and Lionel Richie, adding a distinct flair to its brand.
Now, let’s take a closer look at Baron Capital—its investment philosophy, process, portfolio management, sell discipline, and investment team profile.
Ron Baron
Ron Baron grew up in Asbury Park, a beach town in New Jersey, where he worked multiple part-time jobs to put himself through college. He graduated from Bucknell University in 1965 with a B.A. in Chemistry.
From 1966 to 1969, he worked as a patent examiner at the U.S. Patent Office while attending George Washington University Law School. Despite his parents’ hopes that he’d become a doctor, Ron was drawn to finance. In 1969, he moved to New York City to break into Wall Street, landing his first analyst role within just four months.
Between 1970 and 1982, he worked as an institutional securities analyst at several brokerage firms. His stock recommendations often doubled or tripled in value, but because he was paid on commission, early profit-taking was the norm—cutting short the potential for long-term gains. This experience shaped Baron Capital’s core philosophy: holding onto durable, competitively advantaged growth companies long enough for them to compound in value.
On March 16, 1982, Ron launched Baron Capital with $100,000 and a small office barely bigger than a modern conference room. That year, he hired two employees, including Susan Robbins, who remains a part of the team today as a senior research analyst.
Baron Capital’s long-term approach to small-cap growth investing quickly resonated, earning Ron features in Barron’s and The Wall Street Journal.
By 1992, thanks to a bull market and the rise of internet-driven businesses, the firm had grown to $100 million in AUM. Over the next few years, it introduced three new small- and mid-cap growth strategies.
In 1993, Baron Capital hosted its first investment conference at New York’s Harmonie Club, where CEOs of the firm’s top investments presented to shareholders. This annual event became a signature gathering, giving investors a rare chance to hear directly from portfolio managers and company executives—including Ron himself.
The firm’s AUM surged after the dot-com bubble, climbing from $6.5 billion in 2002 to over $17 billion by 2006, securing Ron Baron a spot on the Forbes 400 list in 2007. Even during the Great Financial Crisis, Baron Capital bucked industry trends by expanding its workforce rather than resorting to layoffs. By 2016, AUM had grown to $23 billion, and the team had doubled from 57 to 114 employees.
As the 2010s unfolded, Baron Capital broadened its investment strategies, venturing into international markets and sector-focused funds. The firm also deepened its commitment to ESG investing, adapting to the evolving needs of its investors.
