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May 7, 2021
Dear WEALTHTRACK Subscriber,There is a rule of thumb on Wall Street that when a fund knocks it out of the park in any given year, or has an exceptional winning streak for a couple of years it is bound to fall to earth sooner rather than later and lag the market, its peers, or both for several years. It's called reversion to the mean. With few exceptions this week’s guest has been in the winning streak category for a while. He is Michael Lippert, Head of Technology Research at Baron Capital and portfolio manager of the firm’s high-growth stock-oriented Baron Opportunity Fund which he has managed solo since he joined the fund in 2006. Rated 5-star, gold by Morningstar, Baron Opportunity racked up a gain of 104% during the year ended March 31st, 2021, trouncing its Russell 1000 Growth benchmark and its Morningstar Large Growth category. Its long-term track record is more modest, it would have to be, but it's still impressive. Under Lippert’s management it has delivered 15% annualized returns, again beating its benchmark and the competition. Morningstar’s one caveat about the fund’s performance has been its volatility, as it focuses entirely on companies with high rates of growth, not on the mitigating effects of returning capital to shareholders with stock buybacks or dividends. Volatility is a topic Lippert tackled in depth in a recent quarterly letter to fund shareholders. I ask him to share his views with us. In this week’s EXTRA feature, Lippert shares the hard lessons he learned from a life-threatening accident back in 2015 and how he is applying them to the pandemic experience. If you miss the show on public television, you can watch it on our website over the weekend. You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify. Thank you for watching. Have a wonderful Mother’s Day weekend and make the week ahead a healthy, profitable and productive one. Best regards, Consuelo | 
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