BDFIX vs. ALFAX

Last updated Jun 4, 2026

BDFIX (Baron Discovery Fund) and ALFAX (Lord Abbett Alpha Strategy Fund) are both Small Cap Growth Equities funds. Over the past 10 years, BDFIX returned 13.91%/yr vs 10.51%/yr for ALFAX. Their correlation of 0.88 suggests significant overlap in exposure. BDFIX charges 1.05%/yr vs 1.40%/yr for ALFAX.

Performance

BDFIX vs. ALFAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Discovery Fund (BDFIX) and Lord Abbett Alpha Strategy Fund (ALFAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BDFIX achieves a 2.05% return, which is significantly lower than ALFAX's 18.69% return. Over the past 10 years, BDFIX has outperformed ALFAX with an annualized return of 13.91%, while ALFAX has yielded a comparatively lower 10.51% annualized return.

BDFIX

• 1D: -0.81%
• 1M: 6.44%
• YTD: 2.05%
• 6M: 0.85%
• 1Y: 9.86%
• 3Y*: 13.70%
• 5Y*: 0.42%
• 10Y*: 13.91%

ALFAX

• 1D: 0.76%
• 1M: 4.83%
• YTD: 18.69%
• 6M: 18.13%
• 1Y: 32.77%
• 3Y*: 15.74%
• 5Y*: 5.22%
• 10Y*: 10.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BDFIX vs. ALFAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BDFIX Baron Discovery Fund	2.05%	10.96%	16.28%	22.58%	-35.12%	4.84%	66.15%	26.85%	0.66%	35.84%
ALFAX Lord Abbett Alpha Strategy Fund	18.69%	8.80%	13.18%	13.92%	-23.50%	15.01%	26.16%	24.95%	-9.72%	20.61%

Correlation

The correlation between BDFIX and ALFAX is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Oct 4, 2013	0.88

The correlation between BDFIX and ALFAX has been stable across timeframes, ranging from 0.81 to 0.89 - a consistent structural relationship.

Return for Risk

BDFIX vs. ALFAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BDFIX

BDFIX Risk / Return Rank: 7
BDFIX Sharpe Ratio Rank: 7
BDFIX Sortino Ratio Rank: 8
BDFIX Omega Ratio Rank: 7
BDFIX Calmar Ratio Rank: 6
BDFIX Martin Ratio Rank: 7

ALFAX

ALFAX Risk / Return Rank: 55
ALFAX Sharpe Ratio Rank: 48
ALFAX Sortino Ratio Rank: 46
ALFAX Omega Ratio Rank: 42
ALFAX Calmar Ratio Rank: 72
ALFAX Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BDFIX vs. ALFAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Discovery Fund (BDFIX) and Lord Abbett Alpha Strategy Fund (ALFAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BDFIX	ALFAX	Difference
Sharpe ratio: Return per unit of total volatility	0.59	2.03	-1.44
Sortino ratio: Return per unit of downside risk	0.97	2.87	-1.89
Omega ratio: Gain probability vs. loss probability	1.11	1.35	-0.24
Calmar ratio: Return relative to maximum drawdown	0.63	3.31	-2.68
Martin ratio: Return relative to average drawdown	1.90	12.75	-10.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BDFIX vs. ALFAX - Sharpe Ratio Comparison

The current BDFIX Sharpe Ratio is 0.59, which is lower than the ALFAX Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of BDFIX and ALFAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BDFIX	ALFAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	2.03	-1.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	0.26	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.51	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.43	+0.09

Drawdowns

BDFIX vs. ALFAX - Drawdown Comparison

The maximum BDFIX drawdown since its inception was -46.39%, smaller than the maximum ALFAX drawdown of -57.11%. Use the drawdown chart below to compare losses from any high point for BDFIX and ALFAX.

Drawdown Indicators

	BDFIX	ALFAX	Difference
Max Drawdown Largest peak-to-trough decline	-46.39%	-57.11%	+10.72%
Max Drawdown (1Y) Largest decline over 1 year	-17.94%	-10.31%	-7.63%
Max Drawdown (3Y) Largest decline over 3 years	-24.26%	-25.01%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-33.88%	-11.50%
Max Drawdown (10Y) Largest decline over 10 years	-46.39%	-40.29%	-6.10%
Current Drawdown Current decline from peak	-7.21%	-0.31%	-6.90%
Average Drawdown Average peak-to-trough decline	-14.62%	-12.87%	-1.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	2.67%	+3.24%

Volatility

BDFIX vs. ALFAX - Volatility Comparison

The current volatility for Baron Discovery Fund (BDFIX) is 4.90%, while Lord Abbett Alpha Strategy Fund (ALFAX) has a volatility of 5.84%. This indicates that BDFIX experiences smaller price fluctuations and is considered to be less risky than ALFAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDFIX	ALFAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	5.84%	-0.94%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	13.10%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	19.19%	16.86%	+2.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.28%	19.86%	+6.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.22%	20.72%	+4.50%

BDFIX vs. ALFAX - Expense Ratio Comparison

BDFIX has a 1.05% expense ratio, which is lower than ALFAX's 1.40% expense ratio.

Dividends

BDFIX vs. ALFAX - Dividend Comparison

BDFIX has not paid dividends to shareholders, while ALFAX's dividend yield for the trailing twelve months is around 4.47%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALFAX Lord Abbett Alpha Strategy Fund	4.47%	5.30%	0.80%	0.46%	6.94%	5.38%	7.99%	14.66%	16.61%	11.96%	11.85%	15.83%
BDFIX Baron Discovery Fund	0.00%	0.00%	0.00%	0.00%	0.00%	3.68%	3.05%	0.13%	8.78%	0.21%	1.97%	0.00%

Frequently Asked Questions

Can I hold both BDFIX and ALFAX in my portfolio?

BDFIX and ALFAX have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BDFIX or ALFAX?

ALFAX has higher volatility (5.84%) compared to BDFIX (4.90%). In terms of maximum drawdown, BDFIX dropped -46.39% vs ALFAX's -57.11%.

Which has better risk-adjusted returns?

ALFAX currently has the higher Sharpe Ratio (2.03 vs 0.59), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.