Review and Outlook

as of 03/31/21

The Review and Outlook for period ending March 31, 2021, is not yet available.

Top Contributors/Detractors to Performance

as of 03/31/21

Contributors

  • AgoraInc. provides Real-Time Engagement Platform-as-a-Service (RTE PaaS) in China. Shares increased during the period held after Agora's fourth quarter earnings results reaffirmed its leadership position in the RTE PaaS vertical and alleviated margin concerns over infrastructure costs and investments in overseas expansions. Nevertheless, we exited our position to reallocate to higher conviction ideas.
  • BNP Paribas S.A. is a France-based universal bank with operations across several European markets and the U.S. Shares of BNP appreciated after reporting year-end results that beat Street estimates and providing an encouraging outlook for 2021. The bank is seeing a strong rebound in its domestic markets and corporate and institutional banking divisions, driven by lower provision costs and higher demand for credit. We retain conviction in BNP given its solid capital position and its credible self-help plan to improve profitability in the mid term.

Detractors

  • Credit Suisse Group AG is a Switzerland-based financial institution focused on wealth management and investment banking. Shares of Credit Suisse declined during the quarter as the company experienced two high-profile mishaps in its asset management and prime brokerage businesses, leading to significant losses and curtailment of its capital return plans. We believe the impact of these losses is already reflected in the market cap and see value in the group’s wealth management operations, which provide upside from current levels.
  • TeamViewer AG, a leading global software connectivity platform, detracted from performance. The company announced two large sponsorship deals with Manchester United and the Mercedes-AMG Formula One team. The goal of the sponsorships is to enhance the TeamViewer brand globally, but in the near-term, they will take down margins by approximately 600 basis points. This drop in near-term profitability was the primary driver of stock weakness. We retain conviction and believe the company has a compelling combination of strong growth prospects and attractive margins.

Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus and summary prospectuses contain this and other information about the Funds. You may obtain them from the Funds’ distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing.

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted.

Risks:All investments are subject to risk and may lose value.

The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed on this page reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time and are subject to change at any time based on market and other conditions and Baron has no obligation to update them

Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

The index performance is not fund performance; one cannot invest directly into an index.