<PAGE> PAGE 1
000 B000000 12/31/1998
000 C000000 0001050084
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 BARON CAPITAL FUNDS TRUST
001 B000000 811-85052
001 C000000 2125832000
002 A000000 767 FIFTH AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10153
003 000000 Y
004 000000 N
005 000000 N
006 000000 N
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007 C010100 1
007 C020100 BARON CAPITAL ASSET FUND
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007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 BAMCO, INC.
008 B00AA01 A
008 C00AA01 801-29080
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10153
011 A00AA01 BARON CAPITAL, INC.
011 B00AA01 8-27533
011 C01AA01 NEW YORK
011 C02AA01 NY
011 C03AA01 10153
012 A00AA01 DST SYSTEMS, INC.
012 B00AA01 84-00448
012 C01AA01 KANSAS CITY
012 C02AA01 MO
012 C03AA01 84105
013 A00AA01 PRICEWATERHOUSECOOPERS, LLP
<PAGE> PAGE 2
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10036
014 A00AA01 BARON CAPITAL, INC.
014 B00AA01 8-27533
015 A00AA01 THE BANK OF NEW YORK
015 B00AA01 C
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015 E01AA01 X
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<PAGE> PAGE 3
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022 B000003 94-1701676
022 C000003 70
022 D000003 0
022 A000004 HERZOG
022 B000004 13-3194448
022 C000004 54
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE LINDA S. MARTINSON
TITLE GENERAL COUNSEL
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001050084
<NAME> BARON CAPITAL FUNDS TRUST
<SERIES>
<NUMBER> 1
<NAME> BARON CAPITAL ASSET FUND - INSURANCE SHARES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> $ 1,580,457
<INVESTMENTS-AT-VALUE> $ 1,760,918
<RECEIVABLES> $ 6,550
<ASSETS-OTHER> $ 1,681,624
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> $ 3,449,092
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> $ 4,318
<TOTAL-LIABILITIES> $ 4,318
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> $ 3,111,599
<SHARES-COMMON-STOCK> 60,840
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> $ 4,187
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> $ 148,527
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> $ 180,461
<NET-ASSETS> $ 3,444,774
<DIVIDEND-INCOME> $ 1,032
<INTEREST-INCOME> $ 7,444
<OTHER-INCOME> 0
<EXPENSES-NET> $ 4,289
<NET-INVESTMENT-INCOME> $ 4,187
<REALIZED-GAINS-CURRENT> $ 148,527
<APPREC-INCREASE-CURRENT> $ 180,461
<NET-CHANGE-FROM-OPS> $ 333,175
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 67,411
<NUMBER-OF-SHARES-REDEEMED> 6,571
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> $ 3,244
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> $ 25,039
<AVERAGE-NET-ASSETS> $ 1,345,702
<PER-SHARE-NAV-BEGIN> $ 10.00
<PER-SHARE-NII> $ 0.02
<PER-SHARE-GAIN-APPREC> $ 3.23
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> $ 13.25
<EXPENSE-RATIO> .015
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001050084
<NAME> BARON CAPITAL FUNDS TRUST
<SERIES>
<NUMBER> 2
<NAME> BARON CAPITAL ASSET FUND - RETIREMENT SHARES
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
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<INVESTMENTS-AT-VALUE> $ 1,760,918
<RECEIVABLES> $ 6,550
<ASSETS-OTHER> $ 1,681,624
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> $ 3,449,092
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<TOTAL-LIABILITIES> $ 4,318
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<OVERDISTRIBUTION-GAINS> 0
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<DISTRIBUTIONS-OF-GAINS> 0
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<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> $ 25,039
<AVERAGE-NET-ASSETS> $ 1,345,702
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<PER-SHARE-NII> $ 0.02
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</TABLE>
PRICEWATERHOUSECOOPERS LLP
1177 Avenue of the Americas
New York, NY 10036
Tel: 212-259-1000
Fax: 212-259-1301
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Baron Capital Funds Trust and the
Shareholders of the Baron Capital Asset Fund
In planning and performing our audit of the financial statements and
financial highlights of the Baron Capital Asset Fund (the "Fund") for
the year ended December 31, 1998, we considered its internal control,
including control over safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion on
the financial statements and financial highlights and to comply with
the requirements of Form N-SAR, not to provide assurance on internal
control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing financial statements
and financial highlights for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized acquisition, use
or disposition.
Because of inherent limitations in internal controls, error or fraud may
occur and may not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of any specific internal control component does not reduce to
a relatively low level the risk that error or fraud in amounts that would
be material in relation to the financial statements and financial
highlights being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control,
including controls over safeguarding securities, that we consider to be
material weaknesses as defined above as of December 31, 1998.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
/s/ PricewaterhouseCoopers LLP
------------------------------
PricewaterhouseCoopers LLP
New York, New York
February 10, 1999
