Baron Global Advantage Fund

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 (GMV) in 2023. Shopify is the second largest e-commerce player in the U.S. as measured by GMV.
Shopify has developed a scalable platform that offers an end-to-end commerce solution to merchants of all sizes, including offline, international, and B2B. Shopify’s aggregate scale, innovation, and ecosystem of partners enable merchants to take payments, receive loans, and sell their products internationally. With less than 2% share of $20 trillion in global commerce, it has a long runway for growth.

NVIDIA Corporation (NVDA) sells semiconductors, systems, and software for accelerated computing, gaming, and generative AI (Gen AI).
Computing demand has been doubling every one to two years, driven by electrification, digitization, and 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 Gen AI adoption grows. Given its leading market share in gaming, data centers, and autonomous machines, we believe NVIDIA can grow rapidly for years to come.

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 is a key competitive advantage, and we see a significant opportunity in the growth of its fintech offerings.

Space Exploration Technologies Corp. (SpaceX) designs, manufactures, and launches rockets, satellites, and spacecrafts. Its ultimate goal is to make humanity multi-planetary. Products include reusable orbital launch offerings and a broadband service leveraging its satellite constellation, Starlink.
We believe SpaceX will continue to drive down the cost of space launches and capture market share with its unique, reliable, and improving reusable launch capabilities. As costs decline, we also expect demand for access to space to increase. By leveraging its launch cost leadership, vertical integration, and innovative design approach, we think SpaceX will have an advantage in building and operating its rapidly expanding satellite-based broadband services, creating an even more attractive growth profile for the company.

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.

Cloudflare, Inc. (NET) offers enhanced security and performance for websites, apps, and SaaS. Its network spans over 100 countries and connects with over 10,000 ISPs, cloud providers, SaaS services, and enterprises. 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.

Argenx SE (ARGX) is a biotechnology company developing antibodies for the treatment of autoimmune disorders. The company is in the early years of the commercial launch of its drug Vyvgart, which promises to change the treatment paradigm for a host of autoantibody immune disorders.
Argenx's main product, efgartigimod, which treats a rare muscle weakness disorder, has potentially broad applicability in ameliorating overactive antibody-based diseases. Efgartigimod is a true "pipeline in a product," where the product itself is the platform, as it has the potential to be used against a diverse range of diseases – something that is rarely achieved in the biotechnology space. We expect the share price to increase as argenx proves its product’s effectiveness in multiple autoantibody disorders.

Datadog, Inc. (DDOG) offers an SaaS-based observability platform that helps businesses keep software and applications up and running. Core products include infrastructure, application performance monitoring, log management, and cloud security to provide visibility into and secure IT environments.
Datadog employs a viral go-to-market strategy and an expanding product line to generate growth through its land-and-expand business model. It is also rapidly increasing its platform capabilities with a broad use, single-pane-of-glass strategy. With strong secular trends, a large total addressable market, flexible platform, solid unit economics, and robust product line, we believe Datadog is well positioned to generate significant growth over the coming years.

Zomato Limited (ZOMATO.IN) is India's leading food delivery platform, with roughly 50% market share. The company also has a classified advertising business. 
Zomato is well positioned to benefit from structural growth in online food delivery in India. The industry has become a duopoly between Swiggy and Zomato, which bodes well for future profitability and scale. In our view, the company should generate revenue growth of more than 40% over the next three to five years.

Wix.com Ltd. (WIX) provides cloud-based software to help micro-businesses build and maintain their websites and operate their businesses. Wix has over 240 million registered users and over 6 million premium subscribers.
Wix is a leading do-it-yourself website-design platform, targeting a large market, as most businesses today require an online presence. We think Wix has strong competitive advantages, driven by product innovation, data-driven distribution, and its leading brand. Wix's technological edge, supported by over 2,000 R&D personnel, results in fast iteration with first-to-market features and vertical offerings. Wix's recent push into the do-it-for-me market with its Wix Studio product opens a large new market for the company.

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