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Baron Global Advantage Equity—E/EUR

Symbol LU2041852554
Symbol LU2041852554
IN
International

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€126.42

Daily Change -€1.78 (-1.39%)
As of 07/18/2024

Net Assets

€40.33 M

As of 12/31/2023

Inception date

01/10/2020

Prices & Performance

PricesAs of 07/18/2024

NAVDaily Change (€)Daily Change (%)MTDQTDYTD
€126.42-€1.78-1.39%-2.07%-2.07%7.17%
NAV€126.42
Daily Change (€)-€1.78
Daily Change (%)-1.39%
MTD-2.07%
QTD-2.07%
YTD7.17%

PerformanceAs of 06/30/2024

YTD11 Year3 YearsSince Inception
01/10/2020
Baron Global Advantage Equity—E/EUR9.43%22.79%-11.24%5.87%
MSCI ACWI Index (EUR)14.72%21.52%9.05%10.64%
MSCI ACWI Growth Index (EUR)19.87%26.94%9.12%13.43%

Portfolio Holdings & Characteristics

HoldingsAs of 12/31/2023

HoldingSector% of Net Assets
NVIDIA Corporation
NVIDIA Corporation (NVDA) sells semiconductors, systems, and software for accelerated computing, gaming, and generative AI (GenAI).
Computing demand has been doubling every one to two years, driven by electrification, digitization and the 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 supply of computing through parallelization. We are at the tipping point of a new era in computing with NVIDIA at its epicenter as GenAI adoption grows. Given its leading market share in gaming, data centers, and autonomous machines, we believe NVIDIA can grow rapidly for years to come.
Information Technology9.2%
MercadoLibre, Inc.
MercadoLibre, Inc. (MELI) is the largest e-commerce company in Latin America. The company operates the MercadoLibre e-commerce marketplace, the Mercado Pago fintech platform, and the Mercado Envios suite of shipping solutions for sellers on its platform.
MercadoLibre benefits from the emergence of two secular trends: e-commerce and digital payments. The company has a significant first-mover advantage and is investing aggressively in logistics to widen its competitive moat. Latin America is a predominantly cash-based economy with e-commerce penetration under 20%, and MercadoLibre has an attractive, asset-light marketplace business model. We believe its logistics network will become a key competitive advantage at scale, and we see a significant opportunity in Mercado Pago off-platform.
Consumer Discretionary8.8%
Shopify Inc.
Shopify Inc. (SHOP) is a cloud-based software provider offering an operating system for multi-channel commerce. The company serves over two million merchants that processed $235 billion of gross merchandise volume in 2023. Shopify is the second largest e-commerce player in the U.S.
Shopify has developed a scalable platform that offers an end-to-end commerce solution to merchants of all sizes, including merchants that sell offline, international merchants, and B2B merchants. Shopify’s aggregate scale, innovation, and ecosystem of partners enable merchants to take payments, receive loans, and easily sell internationally. With less than 2% share of $20 trillion in global commerce, it has a long runway for growth.
Information Technology7.8%
Endava plc
Endava plc (DAVA) provides consulting and outsourced software development for business customers.
Endava benefits from growing demand for IT services and digital transformation from businesses worldwide. The company's competitive differentiation comes from its ability to hire and retain highly skilled, low-cost software engineers, primarily in Eastern Europe. Endava's strong technical capabilities and differentiated labor pool enable the company to work on higher-value client projects with better pricing power than peers. We believe Endava will continue gaining share in a large, growing market by adding new clients and increasing wallet share with existing clients.
Information Technology6.3%
Amazon.com, Inc.
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.
Amazon's market share of U.S. online retail sales is around 40%, while its share of global online retail sales is less than 5%. Amazon has many avenues for revenue growth, including consumer staples, apparel, international expansion, digital media offerings, private label, pharmacy services, advertising, and a better shopping experience powered by generative AI. With Amazon Web Services as a large, growing part of the business, we also believe Amazon represents a unique opportunity to invest in the secular growth of cloud computing.
Consumer Discretionary6.2%
Snowflake Inc.
Snowflake Inc. (SNOW) provides a cloud-native data platform with use cases across data analytics, data sharing, and recently added transactional workloads. It enables storage and computation across leading public cloud providers and simpler and cheaper deployments with high concurrency usage.
Snowflake is leveraging its cloud-native architecture to offer more affordable, scaled, secure, and easy-to-use functionality that is lacking in many competing solutions. Its early-mover advantage, broad vision, strong brand, growing system, and talented management should enable growth within a large addressable market. In addition, we expect Snowflake’s new CEO and product launches to allow the company to better address growing data needs across generative AI workloads. Snowflake's unique marketplace and data sharing offerings should also accelerate usage among customers.
Information Technology5.2%
Tesla, Inc.
Tesla, Inc. (TSLA) manufactures electric vehicles, including a luxury sedan and CUV (S/X), a mid-sized luxury sedan and hatchback (3/Y), and pickup and semi-trucks. It is also ramping up internal battery cell production, energy solutions, and software offerings such as full self-driving and insurance.
We expect Tesla will continue to grow its automotive business rapidly through international production capacity and product expansion. We believe Tesla's vertical integration, technology innovation, brand, profitability, and growing supplier support offer unique and durable growth opportunities that are hard to replicate. In addition, Tesla's energy and software expertise is broadening the industrial opportunity to large and profitable revenue avenues that were previously locked in the legacy vehicle architecture, such as autonomous, insurance, and other AI use cases.
Consumer Discretionary4.8%
Cloudflare, Inc.
Cloudflare, Inc. (NET) wants to build a faster, more secure internet. Its network spans over 300 cities in more than 100 countries and connects with more than 10,000 ISPs, cloud providers, SaaS services, and enterprises globally. Its edge network operates within 100 milliseconds of 99% of the developed world.
Cloudflare's technology is 30% to 50% cheaper than that of peers, while its gross margins are 1,000 to 2,000 basis points higher. It is widely respected among developers, who migrate it from personal to enterprise use. These advantages allow Cloudflare to service about 25% of global internet traffic. We believe Cloudflare will maintain 30%-plus growth for several years given its unique technology and go-to-market strategy that is disrupting a $40 billion market, along with the potential to attack a nascent Edge Computing market that could grow to $10 billion in four years.
Information Technology4.6%
Coupang, Inc.
Coupang, Inc. (CPNG) is Korea's largest e-commerce company. 
Coupang's proprietary logistics system enables faster delivery times and easier returns versus those of its competitors, which we think should drive superior customer retention, lifetime value, and network effects, allowing Coupang to become highly profitable in the intermediate term. Long term, we believe Coupang will become the dominant player in Korean e-commerce and among the country's largest retailers. We also like its prospects in third-party fulfillment and advertising.
Consumer Discretionary4.2%
Bajaj Finance Limited
Bajaj Finance Limited (BAF.IN) is a leading non-banking financial corporation in India. It offers various financial products and services including housing loans, consumer durables financing, small- and medium-sized enterprise credit, and rural loans.  
We believe Bajaj is well positioned to benefit from growing demand for consumer financial services in India. The company's data analytics platform is a key competitive advantage that enables it to earn high risk-adjusted returns (ROEs can sustain 22% to 24%, in our view). Bajaj is quickly becoming India's largest fintech player by creating an ecosystem of apps offering insurance, brokerage, and wealth management, among many other new products and services. We expect Bajaj to grow earnings by roughly 25% to 30% over the next five years.
Financials3.7%
Total
Total
60.7%
Long Equity Exposure (% of Net Assets)
Long Equity Exposure
103.0%
Cash & Equivalents (% of Net Assets)
Cash & Equivalents
-3.0%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Contributors / DetractorsQuarterly as of 06/30/2024

Top ContributorsAverage WeightContribution
NVIDIA Corporation10.17%3.73%
CrowdStrike Holdings, Inc.4.68%0.98%
Coupang, Inc.6.02%0.97%
MercadoLibre, Inc.8.95%0.85%
Amazon.com, Inc.7.48%0.57%
Source: FactSet PA and BAMCO

GICS Sector BreakdownAs of 12/31/2023

Portfolio Characteristics

Information Technology

52.9%

Consumer Discretionary

29.4%

Financials

7.8%

Health Care

5.6%

Industrials

4.3%

Communication Services

-

12/31/2023
Systems Software19.30%
Broadline Retail 19.10%
Internet Services & Infrastructure10.50%
Semiconductors9.20%
IT Consulting & Other Services9.00%
Automobile Manufacturers6.80%
Transaction & Payment Processing Services 4.10%
Consumer Finance3.70%
Biotechnology3.40%
Semiconductor Materials & Equipment 3.30%
Human Resource & Employment Services2.20%
Air Freight & Logistics2.10%
Education Services2.10%
Application Software1.60%
Restaurants1.40%
048121620
Systems Software19.30%
Broadline Retail 19.10%
Internet Services & Infrastructure10.50%
Semiconductors9.20%
IT Consulting & Other Services9.00%
Automobile Manufacturers6.80%
Transaction & Payment Processing Services 4.10%
Consumer Finance3.70%
Biotechnology3.40%
Semiconductor Materials & Equipment 3.30%
Human Resource & Employment Services2.20%
Air Freight & Logistics2.10%
Education Services2.10%
Application Software1.60%
Restaurants1.40%
048121620
United States47.60%
Argentina11.40%
Netherlands8.50%
Canada7.80%
United Kingdom6.30%
India5.10%
Israel4.90%
Korea4.20%
Poland2.10%
Brazil2.10%
081624324048
United States47.60%
Argentina11.40%
Netherlands8.50%
Canada7.80%
United Kingdom6.30%
India5.10%
Israel4.90%
Korea4.20%
Poland2.10%
Brazil2.10%
081624324048

Portfolio CharacteristicsAs of 06/30/2024

Baron Global Advantage Equity—E/EURMSCI ACWI Index (EUR)
Inception Date10 January 2020
Net Assets€40.33 million
# of Issuers / % of Net Assets33 / 99.6%
Active Share92.9%
Median Market Cap€19.81 billion€10.86 billion
Weighted Average Market Cap€477.62 billion€622.19 billion
Management Fee1.10%
EPS Growth (3-5 year forecast)27.4%15.2%
Price/Earnings Ratio (trailing 12-month)46.320.9
Price/Book Ratio4.62.6
Price/Sales Ratio3.91.9
Minimum Investment Amount(E/EUR)$1,000,000
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.