SCHEDULE 13D/A: Baron Capital Group Affiliates Disclose Significant Stake in FIGS, Inc., Holding Over 38% of Class A Common Stock

Baron Capital Group and its affiliated entities, including Ronald Baron, have filed an Amendment No. 5 to their Schedule 13D, disclosing a combined beneficial ownership of 38.04% of FIGS, Inc.'s Class A Common Stock.

Summary

• Baron Capital Group, Inc., along with its affiliates BAMCO INC /NY/, Baron Capital Management, Inc., Baron Growth Fund, Baron Focused Growth Fund, and Ronald Baron, collectively reported beneficial ownership of 58,671,584 shares of FIGS, Inc. Class A Common Stock.
• This aggregate ownership represents 38.04% of the outstanding Class A Common Stock of FIGS, Inc.
• The calculation of beneficial ownership is based on 154,236,572 shares of Class A Common Stock outstanding as of February 14, 2025, as reported in FIGS, Inc.'s Annual Report on Form 10-K filed on February 27, 2025.
• BAMCO INC /NY/ holds sole voting and dispositive power over 27,833,825 shares and shared voting power over 23,327,945 shares, totaling 52,387,876 shares or 33.97%.
• Baron Capital Management, Inc. holds shared voting and dispositive power over 6,283,708 shares, representing 4.07%.
• Ronald Baron, as an individual, and Baron Capital Group, Inc. each report beneficial ownership of 58,671,584 shares, representing 38.04%, with varying sole and shared voting/dispositive powers.
• Baron Growth Fund holds shared voting and dispositive power over 12,368,569 shares, representing 8.02%.
• Baron Focused Growth Fund holds shared voting and dispositive power over 8,493,569 shares, representing 5.51%.
• This filing is Amendment No. 5 to the original Schedule 13D filed on December 31, 2024, with previous amendments filed on January 7, 2025, January 14, 2025, February 21, 2025, and February 27, 2025.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While a Schedule 13D is primarily a factual disclosure of ownership, a significant stake by a well-known investment group like Baron Capital can be interpreted as a vote of confidence in the company's value and future prospects. There are no explicit negative statements or performance issues mentioned.

Positives

• The significant beneficial ownership by Baron Capital Group, a reputable investment firm, may signal confidence in FIGS, Inc.'s long-term prospects.
• A large institutional stake can provide stability to the shareholder base.

Negatives

• A concentrated ownership by a single group could potentially reduce liquidity for other shareholders.
• While not explicitly negative, a large stake could lead to increased influence by the reporting persons on corporate decisions, which may or may not align with all minority shareholder interests.

Risks

• The concentration of ownership by Baron Capital Group and its affiliates could potentially influence corporate governance and strategic direction, which may not always align with the broader market's expectations or other shareholders' interests.

Future Outlook

This Schedule 13D filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding FIGS, Inc.'s future performance or strategic outlook.

Management Comments

• "After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct." Ronald Baron, Chairman and CEO of BAMCO INC /NY/, Baron Capital Management, Inc., and Baron Capital Group, Inc., and CEO of Baron Growth Fund and Baron Focused Growth Fund, and Individually.

Industry Context

FIGS, Inc. operates in the healthcare apparel and lifestyle brand industry. The filing indicates a significant, concentrated investment by Baron Capital Group, a prominent asset management firm known for its long-term growth-oriented investments. This level of ownership by a single investment group is notable within the broader investment landscape, particularly for a publicly traded company.

Stakeholder Impact

• Shareholders: The significant beneficial ownership by Baron Capital Group could influence voting outcomes on corporate matters and potentially impact stock liquidity. It may also be viewed as a positive signal of institutional confidence.
• Company Management: Management may need to consider the interests and potential influence of a large, concentrated shareholder group in strategic decision-making.

Key Dates

Keywords

FIGS Inc, Class A Common Stock, Schedule 13D, Beneficial Ownership, Baron Capital Group, Institutional Investor, SEC Filing, Investment, Healthcare Apparel