Baron Capital Global Durable Advantage Fund

Taiwan Semiconductor Manufacturing Company Limited (TSM), known as TSMC, is the world's largest independent semiconductor foundry, manufacturing chips on behalf of other companies.
TSMC is the dominant force in leading-edge semiconductor foundry manufacturing, as it benefits from economies of scale and a superior cost structure. The company's successful track record of deploying new technology faster than competitors helps it maintain market share and pricing power. We believe TSMC’s investments in advanced nodes will strengthen its market leadership and support long-term profitability.

Amazon.com, Inc. (AMZN) is an e-commerce pioneer, innovator, and market share leader with a relentless focus on providing value and convenience to its customers. Amazon also operates the industry-leading cloud infrastructure business Amazon Web Services (AWS). 
Amazon's market share of U.S. online retail sales is around 45%, while its share of global retail sales is less than 5%. Amazon has many avenues for revenue growth, including consumer staples, international expansion, grocery, digital media offerings, private label, pharmacy and health care services, advertising, and a better shopping experience powered by generative AI. Amazon also represents an opportunity to invest in the secular growth of cloud computing and the adoption of enterprise AI through AWS — a large, fast-growing, and margin-accretive part of the business. 

NVIDIA Corporation (NVDA) sells semiconductors, systems, and software for accelerated computing, gaming, and generative AI.
Computing demand has been doubling every one to two years, driven by electrification, digitization, and recent advancements in AI, yet supply growth has decelerated dramatically due to the slowdown in Moore's law. NVIDIA’s accelerated computing architecture enables continued growth in computing capacity through parallelization. We are at the tipping point of a new era in computing, with NVIDIA at its epicenter as generative AI adoption grows. With leading market share in gaming, data centers, and autonomous machines, we think NVIDIA is well positioned for long-term growth.

Visa Inc. (V) operates a global payments network connecting consumers, financial institutions, merchants, businesses, and governments. It processes transactions through authorization, clearing, and settlement and provides related value-added services.
Visa should benefit from consumer spending growth and the secular shift from cash to electronic payments, particularly outside the U.S., where digital adoption remains less mature. Its trusted brand, global acceptance network, and relationships with financial institutions create durable competitive advantages. Strong cash generation supports continued investment, dividends, and share repurchases.

Alphabet Inc. (GOOGL) is the parent of Google, the world’s leading online search provider. Its products and services include advertising, Android, Chrome, Google Cloud, Google Maps, Google Play, and YouTube. Other Bets includes businesses such as Waymo and CapitalG.
Alphabet should remain a major beneficiary of the shift in advertising from traditional media to online and mobile platforms. Its vast datasets improve products and support expansion into adjacent markets. Alphabet’s scale, distribution, and technical talent position it to benefit from AI across Search and Google Cloud. YouTube provides exposure to the shift toward connected TV, while Waymo remains a leader in autonomous driving.

ASML Holding N.V. (ASML) designs and manufactures semiconductor production equipment. It is the dominant provider of photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that ultimately become printed circuits.
ASML is the clear leader in the photolithography space, with its equipment used by nearly all major semiconductor manufacturers. The company holds over 80% market share in deep ultraviolet photolithography and 100% market share in extreme ultraviolet systems—critical tools that enable continued improvement in chip performance, efficiency, and cost as transitor sizes shrink. In our view, ASML's next-generation high-NA EUV will extend its technological advantage and positions the company for continued lithography dominance at the leading edge of semiconductor production.

CME Group, Inc. (CME) is the world's leading and most diversified derivatives marketplace. Through its exchanges—CME, CBOT, NYMEX, and COMEX—it offers futures and options across interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals.
We expect CME to benefit when market volatility and shifting interest-rate expectations increase trading volumes. Regulatory capital and margin rules favor centrally cleared derivatives over non-cleared OTC contracts. Deep liquidity, integrated clearing, and customer cross-margining benefits create high barriers to entry. CME’s strong free cash flow supports substantial shareholder returns through quarterly and annual variable dividends.

S&P Global Inc. (SPGI) provides credit ratings, benchmarks, analytics, and financial data for investors, businesses, and governments worldwide.
S&P Global should benefit from long-term growth in rated debt issuance, the shift toward passive investing, and rising demand for data and analytics. Its leading brands, proprietary data, embedded workflows, and high switching costs create durable competitive advantages. Strong free cash flow supports continued investment, acquisitions, share repurchases, and dividends.

Brookfield Corporation (BN) is one of the world's largest alternative asset managers, with $1 trillion in assets under management (AUM) and more than $500 billion in fee-generating AUM. It owns stakes in several publicly listed affiliates as well as other unlisted investments.
Brookfield Corporation's stake in listed companies—including Brookfield Infrastructure, Business Partners, Renewable Partners, and recently spun off Brookfield Asset Management—is worth $33 per share. We see another $16 per share in unlisted investments and $8 per share in carried interest generated for a total of $50 per share, based solely on current, in-place earnings. We think the company will profit from growth in alternative asset management, given its superior track record, highly respected CEO, global reach, scale, and diverse product offerings.

Eli Lilly and Company (LLY) is a global pharmaceutical company developing and marketing medicines in diabetes and obesity, oncology, immunology, and neuroscience. It is best known for its GIP/GLP-1 receptor agonists for diabetes and obesity.
We invest in Lilly for its exposure to high-growth categories, including diabetes, obesity, and oncology. Mounjaro and Zepbound, dual GIP/GLP-1 receptor agonists, provide strong glucose control and can produce average weight loss of about 20% at the highest dose in adults with obesity. Tirzepatide has also shown cardiovascular benefits in select high-risk populations. We believe incretin therapies will become standard care for diabetes and obesity, creating a market we estimate could exceed $150 billion.