Famed mutual fund manager Ron Baron of Baron Capital is known for his relatively conservative, long-term approach to stock picking. He's a Warren Buffett of sorts, maybe most acutely in his love of putting pen to paper in shareholder letters and discussing why he invests in certain stocks that fit into his overall investment philosophy. Historically, he has had a management style that has had less risk and lower volatility than peers, according to Morningstar data.
But where Baron takes more risk than you might expect is with Elon Musk's electric car company. In his most recent quarterly letter to shareholders of his funds, the fund manager discussed why he has made a big bet on Tesla Motors. "We are a fan of Tesla's business and of Elon Musk," Baron wrote to fund shareholders in his recent investment update.