TOELF - Baron International Growth Fund Q4 2024 Shareholder Letter

2025-01-29 04:05:00 ET

Summary

• Baron International Growth Fund declined in the fourth quarter of 2024, outperforming its benchmark, the MSCI ACWI ex USA Index.
• Top contributors were eDreams ODIGEO SA, Wix.com Ltd., and argenx SE.
• Top detractors were DSM-Firmenich AG, Symrise AG, and Experian plc.
• As part of our global security theme, we initiated positions in U.K.-based defense company BAE Systems plc and integrated energy company TotalEnergies SE.
• We also initiated an investment in Airbus SE, a global leader in aerospace & defense.

Dear International Growth Fund Shareholder:

Baron International Growth Fund ( BINIX , the Fund) declined 5.90% (Institutional Shares) during the final quarter of 2024, while its primary benchmark, the MSCI ACWI ex USA Index (the Benchmark), retreated 7.60%. The MSCI ACWI ex USA IMI Growth Index (the Proxy Benchmark) lost 7.79% for the quarter. The Fund outperformed both the Benchmark and the Proxy Benchmark during a difficult quarter for non-U.S. equity returns. For the full year 2024, the Fund gained 4.35%, modestly trailing the Benchmark and the Proxy Benchmark, which were up 5.53% and 4.81%, respectively, in the period. While we view our full-year results as respectable though not inspiring, we were pleased that a solid second half of outperformance may mark a longer-term inflection point for all-cap international growth strategies after an extended period of underperformance....

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