BDFIX vs. NESIX

Last updated Jun 4, 2026

BDFIX (Baron Discovery Fund) and NESIX (Needham Small Cap Growth Fund Institutional) are both Small Cap Growth Equities funds. Over the past 5 years, BDFIX returned 0.42%/yr vs 10.97%/yr for NESIX. Their correlation of 0.82 suggests significant overlap in exposure. BDFIX charges 1.05%/yr vs 1.18%/yr for NESIX.

Performance

BDFIX vs. NESIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Discovery Fund (BDFIX) and Needham Small Cap Growth Fund Institutional (NESIX). 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 NESIX's 82.25% 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%

NESIX

• 1D: 4.01%
• 1M: 22.94%
• YTD: 82.25%
• 6M: 79.70%
• 1Y: 125.34%
• 3Y*: 33.75%
• 5Y*: 10.97%
• 10Y*: —

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

BDFIX vs. NESIX - 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%	35.24%
NESIX Needham Small Cap Growth Fund Institutional	82.25%	11.16%	13.47%	5.85%	-29.71%	11.36%	73.06%	55.28%	-4.87%	12.63%

Correlation

The correlation between BDFIX and NESIX is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jan 4, 2017	0.82

The correlation between BDFIX and NESIX shifts across timeframes, from 0.71 (1 year) to 0.84 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

BDFIX vs. NESIX — 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

NESIX

NESIX Risk / Return Rank: 95
NESIX Sharpe Ratio Rank: 99
NESIX Sortino Ratio Rank: 93
NESIX Omega Ratio Rank: 88
NESIX Calmar Ratio Rank: 98
NESIX Martin Ratio Rank: 98

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. NESIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Discovery Fund (BDFIX) and Needham Small Cap Growth Fund Institutional (NESIX). 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	NESIX	Difference
Sharpe ratio: Return per unit of total volatility	0.59	4.41	-3.82
Sortino ratio: Return per unit of downside risk	0.97	4.72	-3.75
Omega ratio: Gain probability vs. loss probability	1.11	1.61	-0.50
Calmar ratio: Return relative to maximum drawdown	0.63	7.79	-7.16
Martin ratio: Return relative to average drawdown	1.90	32.30	-30.40
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. NESIX - Sharpe Ratio Comparison

The current BDFIX Sharpe Ratio is 0.59, which is lower than the NESIX Sharpe Ratio of 4.41. The chart below compares the historical Sharpe Ratios of BDFIX and NESIX, 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	NESIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	4.41	-3.82
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	0.38	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.75	-0.23

Drawdowns

BDFIX vs. NESIX - Drawdown Comparison

The maximum BDFIX drawdown since its inception was -46.39%, smaller than the maximum NESIX drawdown of -49.61%. Use the drawdown chart below to compare losses from any high point for BDFIX and NESIX.

Drawdown Indicators

	BDFIX	NESIX	Difference
Max Drawdown Largest peak-to-trough decline	-46.39%	-49.61%	+3.22%
Max Drawdown (1Y) Largest decline over 1 year	-17.94%	-17.12%	-0.82%
Max Drawdown (3Y) Largest decline over 3 years	-24.26%	-35.21%	+10.95%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-49.61%	+4.23%
Max Drawdown (10Y) Largest decline over 10 years	-46.39%	—	—
Current Drawdown Current decline from peak	-7.21%	0.00%	-7.21%
Average Drawdown Average peak-to-trough decline	-14.62%	-15.00%	+0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	4.12%	+1.79%

Volatility

BDFIX vs. NESIX - Volatility Comparison

The current volatility for Baron Discovery Fund (BDFIX) is 4.90%, while Needham Small Cap Growth Fund Institutional (NESIX) has a volatility of 8.71%. This indicates that BDFIX experiences smaller price fluctuations and is considered to be less risky than NESIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDFIX	NESIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	8.71%	-3.81%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	21.13%	-6.85%
Volatility (1Y) Calculated over the trailing 1-year period	19.19%	30.27%	-11.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.28%	29.29%	-3.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.22%	26.44%	-1.22%

BDFIX vs. NESIX - Expense Ratio Comparison

BDFIX has a 1.05% expense ratio, which is lower than NESIX's 1.18% expense ratio.

Dividends

BDFIX vs. NESIX - Dividend Comparison

Neither BDFIX nor NESIX has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
NESIX Needham Small Cap Growth Fund Institutional	0.00%	0.00%	0.00%	0.00%	3.93%	23.92%	13.26%	8.25%	21.96%	8.89%	0.00%

Frequently Asked Questions

Can I hold both BDFIX and NESIX in my portfolio?

BDFIX and NESIX have a correlation of 0.71, 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 NESIX?

NESIX has higher volatility (8.71%) compared to BDFIX (4.90%). In terms of maximum drawdown, BDFIX dropped -46.39% vs NESIX's -49.61%.

Which has better risk-adjusted returns?

NESIX currently has the higher Sharpe Ratio (4.41 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.