ACGLO - Baron Asset Fund Q1 2024 Shareholder Letter

2024-05-03 09:00:00 ET

Summary

• Baron is an asset management firm focused on delivering growth equity investment solutions known for a long-term, fundamental, active approach to growth investing.
• The Fund appreciated 6.00% (Institutional Shares) in the first quarter, trailing the Russell Midcap Growth Index by 350 basis points.
• The risk-on market environment resulted in a continuation of many of last year’s trends.
• Although we don’t have particular insight into the timing of the Fed’s actions, we believe it is inevitable that it will eventually cut rates, and we believe our investments should benefit.
• The market has been especially focused on a relatively narrow group of companies that are perceived to be the beneficiaries of breakthroughs in AI.

Dear Baron Asset Fund Shareholder

Performance

U.S. equities continued their strong run to begin the year, with major market indexes achieving new all-time highs during the first quarter. The rally was supported by robust economic data and relatively strong corporate earnings, which fueled investor hopes for a soft landing . Investors appeared unfazed by concerns about persistent inflation, the uncertain timing of Federal Reserve (Fed) interest rate cuts, record consumer and government debt, and potential government shutdowns....

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