Baron said he has a 13 percent turnover a year in his biggest fund, which has $6.2 billion in assets under management. "That means I own stocks an average of seven years. … What I'm really interested in, not so much the stock market, I'm interested in companies. I'm an investor."
Over the past year, the initial public offerings of Carlyle Group and Manchester United caught his eye.
"Carlyle group came out and it was an ice cold deal," Baron recalled. "In fact, the stock went from $22 to $21 [a share] and in that period of time we bought 4.5 million shares … and now the stock is $31."
Because of his familiarity with financial firms, he said, he bough Carlyle thinking it was undervalued.
He said he also believed the worldwide brand of the iconic U.K. soccer club Manchester United, valued at less than $2 billion, was low — considering the Los Angeles Dodgers baseball team in the U.S. had sold for more.
"[George] Soros — unbeknownst to us — and we were the two major buyers [of Man U stock] between $14 and $12," Baron said. "I think we bought somewhere around 4 million shares. And now the stock is $16 or $17."