Baron Emerging Markets Fund

Taiwan Semiconductor Manufacturing Company Limited (2330.TT) is the world's largest independent semiconductor foundry, manufacturing chips on behalf of other companies.
TSMC is the dominant force in leading-edge semiconductor foundry manufacturing, as it benefits from economies of scale and a superior cost structure. Its successful track record of deploying new technology faster than competitors enables it to maintain its market share and pricing power. We believe TSMC’s investments in advanced nodes will solidify its superior market positioning and profitability in the long run.

Tencent Holdings Limited (700.HK) is a leading internet service provider and the top game developer in China. Its primary platforms include QQ for instant messaging and WeChat for mobile messaging, social media, and mobile payments.
We are bullish on Tencent's ability to grow EPS at low-double-digit rates over the long term and meaningfully enter new markets like e-commerce with its massive distribution. Tencent benefits from virtuous network effects, and we think it has a long runway to monetize its large user base by pushing value-added services and advertising through its platforms. As Tencent's core domestic gaming business returns to growth, we believe its advancements in generative AI, online advertising, and international gaming will drive further expansion.

Alibaba Group Holding Limited (BABA) is the largest e-commerce company in the world. Alibaba owns and operates the two largest online shopping platforms in China, Taobao and Tmall, and owns a 33% stake in Ant Financial, the country's dominant payment platform.
With over 1 billion annual active buyers and over 10 million merchants, we believe Alibaba benefits from the increased penetration of internet, mobile, and e-commerce in China. Alibaba is the largest player in e-commerce in China, and we expect it to continue to be a dominant force in the country for years to come, though we acknowledge rising low-priced competition. We also see positive optionality in Alibaba's cloud computing, international commerce, data management, and electronic payment platforms.

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (009540.KS) is the holding company of Hyundai Heavy, the largest shipbuilder in the world, based on orderbook size, and the global leader in high-end vessels including liquified natural gas (LNG)-powered ships.
Korean shipbuilders have an oligopoly in LNG carrier shipbuilding, LNG dual-fueled containerships, and tankers. The tightening regulation on carbon emission, which will be fully adopted by the International Maritime Organization (IMO) by 2030, should drive higher demand for LNG dual-fueled ships as well as carbon-free ammonia-fueled ships. We expect a structural shortage of compliant ships to emerge as the IMO deadline nears, which should benefit Korea Shipbuilding given its leading position.

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 (return on equities 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.

Full Truck Alliance Co. Ltd. (YMM) operates the world’s largest digital freight platform by gross transaction value. It has transformed China’s road transportation industry by connecting shippers with truckers to facilitate shipments across a range of distances, cargo weights, and types.
Digital platform penetration in China’s 4 trillion RMB full-truckload market remains in the single digits. Legacy solutions for matching truckers with shippers are inefficient, causing idle times and empty return trips. Full Truck Alliance cuts matching time from days to minutes, optimizes truckloads, and eliminates middlemen charging commissions of more than 10%. With only 6% market penetration and less than 1% take rate, we see significant upside as the company rolls out transaction commissions to truckers, potentially driving a CAGR of 20% over the next five years.

Bharti Airtel Limited (BHARTI.IN) is a leading telecommunications company, with operations in 18 countries across Asia and Africa. The company's offerings include wireless, mobile commerce, and fixed line. 
Bharti is a top three player in the Indian telecommunications industry. With more than 30% market share, it is well positioned to benefit from rising smartphone penetration and 4G services in India. The company should continue to gain market share from Vodafone India, which is on the brink of bankruptcy and will likely need to raise mobile tariffs by more than 50% to remain a viable entity. We expect earnings to generate mid-teens growth over the next three to five years, with further upside from its broadband and enterprise businesses.

BYD Company Limited

Contemporary Amperex Technology Co., Limited (300750.C2), known as CATL, is a leading global developer of high energy density performance batteries. Based in China, it is the world’s largest manufacturer of rechargeable lithium-ion batteries for electric vehicles (EVs) and energy storage systems (ESS).
CATL benefits from industry-leading margins and a relatively lower operating cost structure, driven by its scale (more than 35% global market share in EV batteries), higher production capacity utilization, and superior supply chain management, including vertical integration of certain raw materials. Returns are also supported by lower capital intensity and higher plant throughput compared to peers. We are bullish on growth in EV and ESS batteries and expect CATL to achieve roughly 20% compound EPS growth in the medium term while maintaining strong gross margins and 25% return on equity.

InPost S.A. (INPST.NA) is a logistics company operating a dominant network of automated parcel lockers in Poland, with 45% market share in e-commerce delivery. It has a nascent position in the U.K. and a leading position in France through a 2021 acquisition. It also operates in several satellite countries.
InPost is driving innovation in B2C last-mile delivery. The company benefits from shared infrastructure, accelerating returns to scale and density, secular e-commerce growth, and channel shift to lockers versus to-door delivery. It holds over 90% market share in automated parcel lockers in Poland, reaching 87% of urban area residents within a seven-minute walk. It is also well positioned for international expansion, leveraging cross-border opportunities and ESG advantages for merchants, customers, and regulators.