Baron Global Advantage Fund (BGAFX)

Portfolio Management

Alex Umansky

Fund Manager since 2012

View All Commentary by Alex

Fund Description

Baron Global Advantage Fund invests in growth companies of all sizes anywhere.


Portfolio Commentary

Retail Performance

Review and Outlook (for quarter ended 9/30/2016)

The Review and Outlook for period ending September 30, 2016 is not yet available

Top Contributors/Detractors to Performance

Contributors (for quarter ended 9/30/2016)
  • Shares of, Inc., the world’s largest retailer and cloud services provider, rose in Q3 after reporting strong revenue growth and improving margins in its core business. Amazon’s other major business segment, Amazon Web Services (AWS), continues to gain traction with enterprise customers, and had another strong quarter of growth. Over time, we expect AWS to be the larger contributor to value creation. The company continues to invest in new and potentially large business segments such as e-finance, business supplies and apparel.

  • Shares of Alibaba Group Holding Limited, the largest e-commerce company in China, performed well in Q3 following strong quarterly results. Enhanced financial disclosure helped investors to understand better the profitability of the core commerce business and thereby attribute a higher value to it. We expect that mobile monetization will continue to improve through 2016 and beyond as the company invests in new areas such as online grocery and cloud computing.

  • Shares of Illumina, Inc., the leading provider of DNA sequencing technology to academic and commercial laboratories, contributed to performance in Q3. The company reported financial results that beat Street expectations and reiterated guidance for the year. We continue to believe Illumina has a long runway for growth, driven by increasing adoption of DNA sequencing in clinical markets such as cancer screening, diagnosis, and treatment.

Detractors (for quarter ended 9/30/2016)
  • Shares of cybersecurity software vendor FireEye, Inc. fell in Q3 on disappointing guidance as new management reset expectations for 2016 in an effort to build a solid base for 2017. We believe management is building a strong foundation for future growth. The organization has been right-sized, mid-market and new subscription products are being launched, and go-to-market partnerships have been fine tuned. FireEye has best-in-class technology and is improving its delivery methodology in products (subscriptions) and go-to-market design.

  • Shares of PT Sarana Menara Nusantara Tbk., the largest independent owner of wireless telecommunication towers in Indonesia, declined in Q3 as telcos continued to defer network equipment upgrades. We believe that wireless network spending in Indonesia will eventually climb as operators contend with significant growth in wireless data consumption. Over time, we believe Sarana Menara will build a significant number of new towers for these telco tenants and have the opportunity to acquire peer tower companies as well.

Quarterly Attribution Analysis (for quarter ended 9/30/2016)

The Quarterly Attribution Analysis for period ending September 30, 2016 is not yet available

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