Sept. 11, 2003 — The Baron Growth Fund (BGRFX) will close to new investors tomorrow to keep it from getting too large to be manageable.

The fund is closing to preserve the adviser’s “ability to effectively manage the fund and maintain its focus on small companies,” Baron Funds said in a regulatory filing. The fund had about $1.9 billion in assets at the end of last month.

The fund’s performance has trailed similar funds this year, but has lead them over longer periods.

Baron Growth was up 24.2% this year through August, compared to a gain of 30.3% by the average small-cap growth fund. However, for the three years ended last month, Baron Growth returned an average annualized 5.4%, versus a loss of 14.7% for its peers. For the five year period, the fund rose 17.6% on average, versus 8.3% for its peers.

Baron Growth is ranked 5 Stars by Standard & Poor’s.