Baron International Growth Strategy

Taiwan Semiconductor Manufacturing Company Limited (TSM), known as TSMC, 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. The company's successful track record of deploying new technology faster than competitors helps it maintain market share and pricing power. We believe TSMC’s investments in advanced nodes will strengthen its market leadership and support long-term profitability.

Lundin Mining Corporation (LUN.CN) is a diversified base metals producer primarily focused on copper, with the majority of its operating assets located in South America.
We are bullish on the long-term outlook for copper and expect a multi-year deficit driven by structural demand growth from global electrification. Electric vehicles need roughly four times more copper than internal combustion engine vehicles, while wind and solar power installations use about five times more copper per megawatt than conventional power plants. We view Lundin Mining favorably given its strategic portfolio transition, copper production growth potential, and the transformational joint venture with BHP to develop the Vicuña District copper deposits in Argentina.

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.

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 improve returns on equity (ROE) 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.

TotalEnergies SE

Ajinomoto Co., Inc. (2802.JT), a Japanese multinational, is one of the most profitable food companies in the world. The company has expanded into a wide range of products and services across seasonings, pharmaceutical contract development and manufacturing, and semiconductor functional materials.
We believe that Ajinomoto’s core food business will maintain steady growth, supported by Southeast Asia’s emerging middle class. We are particularly optimistic about the growth prospects for Ajinomoto Build-up Film (ABF), an insulating material used in the packaging of high-performance semiconductors. We expect ABF’s high-margin revenue to surge over the next five years, driven by robust demand for AI accelerators. Overall, we forecast that Ajinomoto can more than double its EPS over this period, with ABF accounting for the majority of profit growth.

Arch Capital Group Ltd. (ACGL) is a Bermuda-based insurance company providing property and 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. Operating in a large global market, Arch benefits from favorable pricing trends across many of its product lines. Management has demonstrated strong underwriting discipline and capital stewardship, allowing Arch to maintain industry-leading returns on equity with less volatility.

AstraZeneca PLC (AZN) is a global biopharmaceutical company with a strategy based on pipeline-driven transformation and a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses.
We think AstraZeneca’s focused strategy could potentially produce a best-in-class growth profile. The company is a leader in economically attractive markets, particularly oncology, and has an opportunity to participate in emerging transformative markets, such as China's modernizing health care system. Current growth comes from multiple avenues as AstraZeneca is one of the rare companies to have pipeline optionality, new product cycles, and no existential loss of exclusivity risk for a key asset.

Tokyo Electron Limited (8035.JP) is an advanced semiconductor equipment manufacturer based in Japan.
As a market leader in photoresist coating, deposition, and etching equipment serving global logic and memory chipmakers, Tokyo Electron’s growth should accelerate in the next 5 to 10 years, driven by surging chip demand and rising complexity of semiconductor manufacturing requiring high-end tools.

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.

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