Baron Emerging Markets Strategy
Symbol EMERGINGGROW
non
US
Non-U.S./GlobalUS
Total Strategy Assets
$5.17 B
As of 09/30/2024
Inception date
01/31/2011
Performance
PerformanceAs of 09/30/2024
Portfolio or Index | QTD | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception 01/31/2011 |
---|---|---|---|---|---|---|---|
Baron Emerging Markets Strategy (Net) | - | 17.45% | 25.68% | -3.08% | 4.85% | 3.97% | 4.71% |
Baron Emerging Markets Strategy (Gross) | - | 18.23% | 26.81% | -2.19% | 5.83% | 4.97% | 5.53% |
MSCI Emerging Markets Index | - | 16.86% | 26.05% | 0.40% | 5.75% | 4.02% | 2.85% |
MSCI Emerging Markets IMI Growth Index | - | 17.48% | 26.55% | -1.62% | 6.23% | 4.80% | 3.71% |
Performance InformationAs of 09/30/2024
Performance statistics | 3 Years | 5 Years | 10 Years |
---|---|---|---|
Standard Deviation (%) | 17.64 | 19.95 | 16.83 |
Sharpe Ratio | -0.38 | 0.12 | 0.14 |
Alpha (%) | -3.42 | -0.84 | 0.27 |
Beta | 0.97 | 1.04 | 0.93 |
R-Squared (%) | 93.93 | 93.39 | 90.06 |
Tracking Error (%) | 4.38 | 5.17 | 5.43 |
Information Ratio | -0.80 | -0.17 | -0.01 |
Upside Capture (%) | 91.65 | 100.76 | 92.90 |
Downside Capture (%) | 106.97 | 104.73 | 92.10 |
Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Emerging Markets Strategy's benchmark MSCI EM Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.
Portfolio Holdings & Characteristics
HoldingsAs of 11/30/2024
Holding | Sector | % of Total Investments | |
---|---|---|---|
Taiwan Semiconductor Manufacturing Company Limited Taiwan Semiconductor Manufacturing Company Limited (TSM) 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. Its successful track record of deploying new technology faster than competitors enables it to maintain its market share and pricing power. We believe TSMC’s investments in advanced nodes will solidify its superior market positioning and profitability in the long run. | Information Technology | 9.5% | |
Tencent Holdings Limited Tencent Holdings Limited (700.HK) is a leading internet service company and the top game developer in China. Its primary platforms include QQ for instant messaging, WeChat for mobile messaging, and Qzone for social networking. We are bullish on Tencent's ability to grow EPS at low double-digit rates in the long term and meaningfully enter new markets like e-commerce with its massive distribution. Tencent benefits from virtuous network effects, and we think it has a long runway to monetize its large user base by pushing value-added services and advertising through its platforms. We believe online advertising and advances in generative AI, fintech, and international gaming will continue to drive growth as management executes to capture share in these large and growing markets. | Communication Services | 4.3% | |
HD Korea Shipbuilding & Offshore Engineering Co., Ltd. HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (009540.KS) is the holding company of Hyundai Heavy, the largest shipbuilder in the world, based on orderbook size, and the global leader in high-end vessels including liquified natural gas (LNG)-powered ships. Korean shipbuilders have an oligopoly in LNG carrier shipbuilding, LNG dual-fueled containerships, and tankers. The tightening regulation on carbon emission, which will be fully adopted by the International Maritime Organization (IMO) by 2030, should drive higher demand for LNG dual-fueled ships as well as carbon-free ammonia-fueled ships. We expect a structural shortage of compliant ships to emerge as the IMO deadline nears, which should benefit Korea Shipbuilding given its leading position. | Industrials | 2.9% | |
Bharti Airtel Limited Bharti Airtel Limited (BHARTI.IN) is a leading telecommunications company, with operations in 18 countries across Asia and Africa. The company's offerings include wireless, mobile commerce, and fixed line. Bharti is a top three player in the Indian telecommunications industry. With more than 30% market share, it is well positioned to benefit from rising smartphone penetration and 4G services in India. The company should continue to gain market share from Vodafone India, which is on the brink of bankruptcy and will likely need to raise mobile tariffs by more than 50% to remain a viable entity. We expect earnings to generate mid-teens growth over the next three to five years, with further upside from its broadband and enterprise businesses. | Communication Services | 2.5% | |
Alibaba Group Holding Limited Alibaba Group Holding Limited (BABA) is the largest e-commerce company in the world. Alibaba owns and operates the two largest online shopping platforms in China, Taobao and Tmall, as well as a 33% stake in Ant Financial, which is the country's dominant payment platform. With over 900 million active buyers and over 10 million merchants, we believe Alibaba benefits from the increased penetration of internet, mobile, and e-commerce in China. It enjoys roughly 60% market share of all e-commerce transactions in China, and we expect it to continue to be a dominant force in the country for years to come, though we acknowledge low-priced competition. We also see positive optionality in Alibaba's cloud computing, international commerce, data management, and electronic payment platforms. | Consumer Discretionary | 2.4% | |
Swiggy Limited Swiggy Limited | Consumer Discretionary | 2.2% | |
Trent Limited Backed by the Tata Group, Trent Limited (TRENT.IN) is a leading direct-to-consumer retailer in India that sells private label apparel through its retail chains. It reported $1 billion in revenue for fiscal 2024 and operates over 750 Westside and Zudio stores across 150 cities in India. Trent is a differentiated apparel company focused on product quality, a pricing strategy without promotion, and supply chain management, which translates into quality like-for-like (LFL) growth. The company is expanding its Zudio value fashion retail chain, and we estimate that Zudio store count could reach more than 1,000 in the next five years. We believe double-digit LFL growth and store expansion could drive 25%-plus topline growth. Operating leverage and franchise growth should further aid margin expansion and drive 30%-plus EBITDA CAGR in the years ahead. | Consumer Discretionary | 2.2% | |
InPost S.A. InPost S.A. (INPST.NA) is a logistics company operating a dominant network of automated parcel lockers in Poland, with 45% market share in e-commerce delivery. It has a nascent position in the UK and a leading position in France through a 2021 acquisition. It also operates in several satellite countries. InPost is driving innovation in B2C last-mile delivery. The company benefits from shared infrastructure, accelerating returns to scale and density, secular e-commerce growth, and channel shift to lockers versus to-door delivery. It holds over 90% market share in automated parcel lockers in Poland, reaching 87% of urban area residents within a 7-minute walk. It is also well positioned for international expansion, leveraging cross-border opportunities and ESG advantages for merchants, customers, and regulators. | Industrials | 2.1% | |
Meituan Meituan (3690.HK) is China's largest food delivery platform, holding over 70% market share, and the leading super app for local services, with over 700 million annual users. Built on millions of user-generated reviews, it has become the go-to app for discovering local businesses like restaurants and salons. We view Meituan as the most attractive food delivery business globally, given its massive scale (60 million daily delivery orders), strong competitive positioning, and solid operational track record. We expect its food delivery economics to improve over time, driven by rising advertising revenue and reduced user incentives. Meituan also operates a local services marketplace that monetizes primarily through commissions on in-store coupons, hotel bookings, and advertising. We expect Meituan to achieve over 20% compound earnings growth over the next four years. | Consumer Discretionary | 2.1% | |
Contemporary Amperex Technology Co., Limited Contemporary Amperex Technology Co., Limited | Industrials | 2.1% | |
Total Total | 32.3% | ||
Long Equity Exposure (% of Net Assets) Long Equity Exposure | 100.1% | ||
Cash & Equivalents (% of Net Assets) Cash & Equivalents | -0.1% |
Top Ten Holdings, Portfolio Holdings, and Sector Breakdown based on net assets. Positions smaller than 0.05% round to 0.0%. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Contributors / DetractorsQuarterly as of 09/30/2024
Top Contributors | Average Weight | Contribution |
---|---|---|
Alibaba Group Holding Limited | 2.15% | 0.94% |
Swiggy Limited | 3.07% | 0.76% |
Trent Limited | 2.01% | 0.71% |
Tencent Holdings Limited | 4.25% | 0.68% |
HD Korea Shipbuilding & Offshore Engineering Co., Ltd. | 2.71% | 0.61% |
Source: FactSet PA. Based on the gross performance results of the representative account.
GICS Sector BreakdownAs of 11/30/2024
Sector
Information Technology
20.0%
Consumer Discretionary
19.4%
Industrials
18.8%
Financials
14.4%
Communication Services
10.4%
Consumer Staples
5.4%
Materials
4.3%
Health Care
2.9%
Energy
1.7%
Utilities
1.3%
Real Estate
1.3%
11/30/2024
Semiconductors11.40%
Diversified Banks6.10%
Broadline Retail 6.10%
Restaurants5.50%
Construction Machinery & Heavy Transportation Equipment 4.80%
Interactive Media & Services4.70%
Air Freight & Logistics2.90%
Electrical Components & Equipment2.70%
Electronic Components2.60%
Wireless Telecommunication Services2.50%
Investment Banking & Brokerage2.40%
Integrated Telecommunication Services2.20%
Apparel Retail2.20%
Cargo Ground Transportation 2.00%
Industrial Machinery & Supplies & Components 1.90%
024681012
Semiconductors11.40%
Diversified Banks6.10%
Broadline Retail 6.10%
Restaurants5.50%
Construction Machinery & Heavy Transportation Equipment 4.80%
Interactive Media & Services4.70%
Air Freight & Logistics2.90%
Electrical Components & Equipment2.70%
Electronic Components2.60%
Wireless Telecommunication Services2.50%
Investment Banking & Brokerage2.40%
Integrated Telecommunication Services2.20%
Apparel Retail2.20%
Cargo Ground Transportation 2.00%
Industrial Machinery & Supplies & Components 1.90%
024681012
India28.40%
China26.30%
Korea13.50%
Taiwan13.40%
Brazil5.70%
Poland2.90%
Philippines1.70%
Hong Kong1.50%
Mexico1.50%
Peru1.50%
South Africa1.40%
Indonesia0.80%
United Arab Emirates0.70%
Spain0.50%
Argentina0.40%
051015202530
India28.40%
China26.30%
Korea13.50%
Taiwan13.40%
Brazil5.70%
Poland2.90%
Philippines1.70%
Hong Kong1.50%
Mexico1.50%
Peru1.50%
South Africa1.40%
Indonesia0.80%
United Arab Emirates0.70%
Spain0.50%
Argentina0.40%
051015202530
Portfolio CharacteristicsAs of 06/30/2024
Description | Baron Emerging Markets Strategy | MSCI EM Index |
---|---|---|
Inception Date | January 31, 2011 | |
# of Issuers / % of Net Assets | 87 / 97.0% | |
Turnover (3 Year Average) | 39.33% | |
Active Share | 68.1% | |
Median Market Cap | $14.72 billion | $7.57 billion |
Weighted Average Market Cap | $162.25 billion | $166.74 billion |
EPS Growth (3-5 year forecast) | 21.8% | 18.6% |
Price/Earnings Ratio (trailing 12-month) | 24.3 | 14.4 |
Price/Book Ratio | 2.8 | 1.9 |
Price/Sales Ratio | 2.5 | 1.3 |
Total Strategy Assets | $5.17 billion |
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.