Baron Global Opportunity Fund | Q3 2026

Summary

• The Baron Global Opportunity Fund gained 3.32% for Institutional Shares in the third quarter of 2026, outperforming the MSCI ACWI Index which rose 1.60% and the MSCI ACWI Growth Index which declined 0.46%.
• Year-to-date performance for the Fund reached 24.6%, compared to 13.0% for the MSCI ACWI Index and 10.1% for the MSCI ACWI Growth Index.
• Shopify Inc., Cloudflare Inc., and CrowdStrike Holdings Inc. were the largest contributors to the Fund's returns.
• Space Exploration Technologies Corp., Forgent Power Solutions Inc., and Loar Holdings Inc. were the largest detractors from the Fund's returns.
• The Fund initiated a position in Coherent Corp. and added to existing holdings including Nu Holdings Ltd. and Taiwan Semiconductor Manufacturing Company Limited.
• SpaceX, which represented 20.2% of the Fund at the start of the quarter, declined 11.7% and cost the Fund 269 basis points.
• Stock selection contributed 75 basis points while sector allocation added 97 basis points to relative performance.
• The Information Technology sector contributed 444 basis points to relative returns, driven by a 13.4% average gain in Fund holdings versus 4.4% for the Index.
• Health Care holdings rose 26.3% compared to 3.7% for the Index, contributing an additional 131 basis points to relative returns.
• Developed markets contributed 268 basis points to relative performance, with the U.S. adding 178 basis points and Canada adding 144 basis points.
• Emerging markets detracted 74 basis points, primarily due to underperformance in Taiwan, Korea, and Brazil.
• Shopify stock rose 29.9% with gross merchandise volume rising 32% year-over-year to $116 billion.
• Cloudflare stock rose 41.6% as revenue growth accelerated to 36% year-on-year.
• CrowdStrike stock increased 38.1% with annual recurring revenue, net new ARR, and revenue growth all accelerating.
• NVIDIA added 99 basis points to absolute returns.
• Illumina, Snowflake, Heartflow, Zscaler, Netskope, and Eternal each contributed over 50 basis points to returns.
• Forgent, Loar, and Coupang each cost over 50 basis points, with declines attributed to multiple contraction despite strengthening fundamentals.
• The Fund ended the quarter with 19 contributors and 21 detractors.
• The 10-year Treasury yield reached 5.3%, its highest level since 2002.
• The Fund generated a 32.1% annualized return over the past three years, ranking in the 3rd percentile of the Morningstar Global Large-Stock Growth Category.
• The 10-year annualized return for the Fund was 15.7%, compared to 12.4% for the Index and 11.8% for the Peer Group.
• Since inception in April 2012, the Fund has outperformed the Index by 2.9% per year and the Peer Group by 3.5% per year.
• The net annual expense ratio for Retail Shares was 1.15% and for Institutional Shares was 0.90% as of April 30, 2026.
• The Adviser has agreed to waive expenses pursuant to a contract expiring on August 29, 2037.