Baron International Growth Fund (BIGFX)

Portfolio Management

Michael Kass

Fund Manager since 2008

View All Commentary by Michael

Fund Description

Baron International Growth Fund invests primarily in non-U.S. growth companies.



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 Eurofins Scientific SE contributed to performance in Q3. Eurofins provides analytical testing services to clients in the food, pharmaceutical, and environmental sectors. The company reported strong financial results for the first half of 2016, including double-digit organic revenue growth and cash flow greater than analyst forecasts. We continue to believe Eurofins has a strong long-term growth outlook, driven by increasing demand for safe, high-quality food; increasing regulation; and more outsourcing of testing by clients.

  • 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 Multi Commodity Exchange of India Ltd. rose in Q3. With over 85% share of the commodity exchange market, the company benefits from growing commodity trading activity in India. The government recently approved options trading on commodity exchanges, which is expected to significantly expand market participation and traded volumes. An increase in trading fees by about 25% was also a key driver of stock performance. We like the company’s recurring revenue model and ability to generate high returns on capital given its dominant position.

Detractors (for quarter ended 9/30/2016)
  • Shares of MonotaRO Co., Ltd. declined during Q3. MonotaRO sells a variety of consumables to business customers in Japan and Korea. While MonotaRO’s business continues to grow in a predictable and profitable manner, the stock can be highly volatile quarter to quarter due to high growth expectations. We believe the company has a substantial opportunity to gain market share in the maintenance, repair, and overhaul distribution business in its core Japanese market, with incremental opportunities in Korea and Indonesia.

  • Shares of British consumer products company Reckitt Benckiser Group Plc fell in Q3, weighed down by a pending investigation in South Korea where several companies, including Reckitt Benckiser, were named in the sale of harmful humidifier sanitizers there. We believe the price correction may be overdone. The company has already taken a charge for costs associated with the sanitizer, and its Korea business is relatively small. Earnings growth has been solid, as it has been growing revenue while expanding margins through efficiency programs.

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

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

Back to Top

Invest In Baron Funds Today

The 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.

Source: FactSet PA