AZUL - Baron Emerging Markets Fund Q1 2023 Shareholder Letter

2023-05-04 05:21:00 ET

Summary

• Baron Emerging Markets Fund gained 2.68% (Institutional Shares) during the first quarter of 2023, while its principal benchmark Index, the MSCI EM Index, returned 3.96%.
• The Fund may invest in companies of any market capitalization, and we have generally been broadly diversified across large-, mid-, and small-cap companies, as we believe developing world companies of all sizes can exhibit attractive growth potential.
• For several international/EM jurisdictions that began a rate hike cycle well ahead of the U.S., and/or have also experienced a much less pronounced rise in inflation, we believe the confirmation of peak hawkishness may act as a signal that they can soon begin to ease as the tail risks of currency depreciation and inflation have ebbed, which would support outperformance.

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