Baron International Growth Strategy

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 (efgartigimod alfa) for a rare muscle weakness disorder.
Efgartigimod 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.

Linde plc (LIN.GY) is the largest global independent industrial gas operator.
Industrial gas producers benefit from strong pricing power due to the industry's consolidated structure and high barriers to entry. We believe Linde is making a major contribution toward lowering greenhouse gas emissions and will benefit from a wave of hydrogen projects as well as carbon capture and sequestration projects, which should supplement double-digit earnings growth for the company’s base industrial gas business.

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.

Constellation Software Inc. (CSU.CN) is a holding company that owns and operates a large number of small- and medium-sized software businesses. These businesses allow customers across a wide range of verticals to automate key activities with the goal of saving on labor costs.
Constellation has valuable experience to offer acquisition targets, primarily around building high-touch, low-cost modules and contract pricing. We view this experience as a durable competitive advantage while the company continues to acquire targets. With over 20,000 small owner-operated vertical market software businesses in the U.S. and Europe, Constellation's successful acquisition program and moat should remain intact, in our view. We believe management can meet its goal of compounding free cash flow per share at greater than 12% over time.

EDreams ODIGEO SA (EDR.SM) is one of the largest online travel companies in the world and e-commerce businesses in Europe. The company serves customers across 44 markets under four brands—eDreams, GO Voyages, Opodo, and Travellink—as well as the metasearch engine Liligo.
EDreams is transforming from a transactional to a subscription-based business and has already reached 6.5 million subscribers, ahead of its original schedule. It is on pace to reach its target of 7.25 million Prime members by fiscal 2025, double our original forecast. The company should continue to grow through new customer acquisition and product offerings that could increase its value proposition to consumers, including through entering the fragmented European hotel market and offering more personalized and effective customer experiences with its use of AI.

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company providing property & casualty insurance, reinsurance, and mortgage insurance.
Arch is led by an experienced management team with a successful track record across insurance cycles. The company excels at underwriting specialized policies and can nimbly shift its business mix to target the most profitable lines as market conditions change. It operates in a large global market and benefits from favorable pricing trends across many of its product lines. In our view, management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility.

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.

Experian plc (EXPN LN) provides data and analytical tools to manage credit risk, prevent fraud, target marketing offers, and automate decision-making. The company is one of three credit bureaus in the U.S. and is the largest credit bureau in the U.K.
Experian is growing by introducing new products, entering new customer verticals, and expanding internationally. The company has aggressively expanded in developing countries by launching new credit bureaus and acquiring existing bureaus. Experian has visible revenue growth, expanding margins, and strong cash flow to fund dividends and share repurchases.

BNP Paribas S.A. (BNP.FP) is a French bank with leading positions in France, Belgium, and Italy. It offers retail banking, corporate investment banking, and asset management, among other financial services. BNP has smaller operations throughout Europe, as well as in the U.S., through its subsidiary Bancwest.
BNP offers a diversified earning mix, above-average execution track record, and high-quality management, in our view. It holds strong franchises in its three main activities: retail banking, corporate and institutional banking, and investment solutions, positioning it to benefit from an expected eventual recovery in the Eurozone. We think BNP will experience ROE improvement through increasing efficiencies. We also think there is upside to management’s strategic plan for achieving 10% ROE, as it is based on conservative assumptions on growth and interest rates.

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.