Baron International Growth 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.

BNP Paribas S.A. (BNP.FP) is a French bank with leading positions in France, Belgium, and Italy. It offers retail banking, corporate investment banking, and asset management, among other financial services. BNP has smaller operations throughout Europe, as well as in the U.S., through its subsidiary Bancwest.
BNP offers a diversified earning mix, above-average execution track record, and high-quality management, in our view. It holds strong franchises in its three main activities: retail banking, corporate and institutional banking, and investment solutions—positioning it to benefit from an expected eventual recovery in the Eurozone. We think BNP will improve returns on equity (ROE) through increasing efficiencies. We also think there is upside to management’s strategic plan for achieving 12% ROE, as it is based on conservative assumptions on growth and interest rates.

Argenx SE (ARGX) is a biotechnology company launching Vyvgart (efgartigimod) in myasthenia gravis and chronic inflammatory demyelinating polyneuropathy, while developing the drug for additional autoantibody-driven autoimmune conditions. 
Efgartigimod has potentially broad applicability in ameliorating overactive antibody-based diseases. Efgartigimod is a true "pipeline in a product," where the product itself is the platform, as it has the potential to be used against a diverse range of diseases—something that is rarely achieved in the biotechnology space. We expect the share price to increase as argenx proves its product’s effectiveness in multiple autoantibody disorders.

TotalEnergies SE (TTE.FP) is an integrated energy company that produces and markets fuels, natural gas, and electricity.
TotalEnergies is one of the largest and lowest cost producers of liquefied natural gas (LNG), with one of the industry leading project growth pipelines and marketing networks. In addition, the company is making significant investments across the integrated power supply chain by building a large portfolio of renewable, and low-carbon power projects. We view favorably its improving shareholder returns and ESG initiatives, including targets aligned with the Paris Agreement to reduce Scope 1 and 2 emissions by 40% by 2030 and achieve net-zero emissions by 2050.

Mitsubishi UFJ Financial Group, Inc. (MUFG) is Japan’s largest financial group, offering banking, trust, securities, and asset management services globally. The company is a long-term strategic investor in Morgan Stanley, with an ownership stake of roughly one quarter.
MUFG stands out for its global scale, balance sheet strength, and unique strategic stake in Morgan Stanley, which provides diversified earnings beyond Japan. The company is positioned to benefit disproportionately from rising Japanese interest rates, supported by best-in-class capital ratios, disciplined risk management, and improving shareholder returns. Relative to peers, MUFG offers superior international exposure, higher fee income, and meaningful return on equity upside, making it an attractive play on Japan’s financial normalization.

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company providing property and casualty insurance, reinsurance, and mortgage insurance.
Arch is led by an experienced management team with a successful track record across insurance cycles. The company excels at underwriting specialized policies and can nimbly shift its business mix to target the most profitable lines as market conditions change. With only 2% share of a $1 trillion global commercial insurance market, Arch has significant runway for share gains. Management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility than peers.

Sumitomo Mitsui Financial Group, Inc. (8316.JP) is the holding company of Sumitomo Mitsui Banking Corporation, one of Japan’s largest commercial banks. It offers services to corporate and retail clients through more than 450 branches in Japan and operations across the U.S., Europe, the Middle East, and Asia.
We believe management’s targets outlined in its recent strategic plan appear conservative given a pickup in securities activity and the normalization of interest rate policy in Japan. The bank has been actively investing in digital transformation, which we believe should drive improved efficiency. Finally, management’s commitment to an attractive capital return profile supports the potential for dividend growth and an expanded buyback program, further enhancing shareholder returns.  

Keyence Corporation (6861 JP) is a leading developer and manufacturer of factory automation equipment. The company's products include fiber optic sensors, photoelectric sensors, laser scan, and bar code readers. Keyence is headquartered in Osaka, Japan.
As a leading supplier of sensor technologies and machine vision applications for factory and supply chain automation, Keyence should benefit from the increasing adoption of industrial automation to enhance productivity as labor costs climb. This is particularly true in China, which is fast becoming a high-growth market, as well as other Asian markets. Keyence leverages strong R&D capabilities and a highly technical sales force to provide customized solutions across various industries. We expect earnings to compound 12% to 15% over the next three to five years.

Samsung Electronics Co., Ltd. (005930.KS) is a Korean technology conglomerate known for its leadership in consumer electronics and semiconductor manufacturing.
Samsung is the bellwether for global technology innovation and continues to deliver robust earnings across memory, logic, display, and smartphones. We are confident Samsung can maintain its technology leadership for years to come, given its strong research and development track record and ability to meet ever-changing global consumer demand.

Euronext N.V.