Baron International Growth Fund (BIGFX)
Portfolio Management
Michael Kass
Fund Manager since 2008
View All Commentary by MichaelFund Description
Baron International Growth Fund invests primarily in non-U.S. growth companies.
Fund Resources
Michael Kass sees growth opportunities overseas.
Latest Fact Sheets
Portfolio Commentary
Retail PerformanceReview and Outlook (for quarter ended 3/31/2013)
This Fund does not have a Review and Outlook for period ending March 31, 2013
Top Contributors/Detractors to Performance
Contributors (for quarter ended 3/31/2013)
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Shares of Eurofins Scientific SE outperformed in Q1. Eurofins provides analytical testing services to clients in the food, pharmaceutical, and environmental industries. In early March, the company reported solid Q4 results, capping a strong 2012 in which the company grew revenue above management’s mid-term objective. The stock also rose because the company is providing food testing services in Europe related to the horse meat scandal.
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Kakaku.com, Inc. shares rose 52.4% in Q1. An operator of several websites in Japan, Kakaku is slated to enjoy robust growth in its flagship, Kakaku.com, driven by anticipated economic growth in Japan this year. Further, Tabelog.com, which the company has been incubating, is expected to become a meaningful revenue contributor this year as management begins to monetize the site in earnest in 2013.
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Shares of Ryanair Holdings plc increased 21.9% during Q1, after reporting a strong Q4. Ryanair is Europe’s ultra low cost airline, flying 80 million passengers per year with 15% market share. Legacy European carriers, Ryanair’s competition, have been withdrawing from short-haul routes because they cannot fly profitably. Ryanair has proven that a low cost, low fare model works for European passengers and airports alike, and we expect Ryanair to fly over 100 million passengers in a 5-10 year timeframe, corresponding to 20% market share.
Detractors (for quarter ended 3/31/2013)
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Financial Technologies Ltd. operates financial exchanges and owns 26% of MCX, the largest commodity exchange in India. In March, India’s government announced a new tax on commodity transactions to take effect in June. This news has led to uncertainty about the effect on commodity-related trading volumes and, given Financial Technologies interest in MCX, the stock sold off. We believe investors ascribe little to no value to the company’s other fast growing and profitable exchanges. Despite a weak local equity market, we retain conviction in the company due to its business model and high returns on capital.
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Velti plc is a leading global mobile marketing company. Shares of Velti declined sharply in Q1 due to the company missing Q4 expectations and reducing its 2013 outlook. While the company is focused on improving free cash flow generation in 2013, we believe it will take time before the company passes its low point on cash generation. Due to this lack of free cash flow visibility, we exited the position.
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Agrinos AS declined 46.3% in Q1. Agrinos is a green technology company with a unique microbial product that enhances crop yields. Performance in Q1 was weak because a delay in receivables collection led to a change in accounting policy, with no revenue booked for Mexico in Q4. We continue to hold Agrinos because we believe it has disruptive technology and exciting long-term growth prospects.
Quarterly Attribution Analysis (for quarter ended 3/31/2013)
This Fund does not have a Quarterly Attribution Analysis for period ending March 31, 2013
Invest In Baron Funds TodayThe prospective performance of the companies discussed herein is based on our internal analysis and reflect our opinions only. We cannot promise future returns and our opinions are a reflection of our best judgement at the time of publication. Our views are not intended as recommendations or investment advice to any person and are subject to change at any time based on market and other conditions and Baron has no obligation to update them. Investing in the stock market is always risky. Current and future portfolio holdings in the Fund are subject to risk.