Here’s Why Mercury Systems (MRCY) Became One of Baron Funds’ Top Detractors Baron Funds, an asset management firm, published its “Baron Small Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.67% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing the S&P 500 Index, which appreciated 6.17%, and modestly underperforming the Russell 2000 Growth Index which rose 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021. Baron Small Cap Fund, in its Q1 2021 investor letter, mentioned Mercury Systems, Inc. (NASDAQ: MRCY), and shared their insights on the company. Mercury Systems, Inc. is a Andover, Massachusetts-based aerospace and defense company that currently has a $3.5 billion market capitalization. Since the beginning of the year, MRCY delivered a -27.63% return, while its 12-month returns are down by -21.92%. As of May 14, 2021, the stock closed at $63.73 per share.