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. Its 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.

EDreams ODIGEO SA (EDR.SM) is one of the largest online travel companies in the world and among the leading 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 6.8 million subscribers, ahead of its original schedule. The company has over 7.25 million Prime members, surpassing its multi-year target and more than doubling our initial forecast. EDreams should continue to grow through new customer acquisitions 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.

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.

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. We believe management can meet its goal of compounding free cash flow per share at more than 12% over time.

Deutsche Bank AG

Waga Energy SA (WAGA.FP) is an independent biomethane producer that upgrades landfill gas into cost-competitive, grid-compliant biomethane. Biomethane helps combat climate change by reducing methane emissions from landfills and serving as a renewable substitute for natural gas and other fossil fuels.
The company develops, finances, builds, commissions, and operates purification units using its patented proprietary WAGABOX® technology, which enables the capture of biomethane from nearly any landfill site. Industry experts forecast a 25-fold increase in renewable natural gas consumption by 2040, driven by government policies. The company currently has 28 WAGABOX units in operation and has secured contracts for 11 more, representing a combined 100 million euros in annual fixed-price sales. In addition, the company has a project pipeline covering 165 additional sites.

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (009540.KS), a sub-holding company of HD Hyundai, oversees key affiliates like HD Hyundai Heavy Industries, the world's largest shipbuilder by order book size and a 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.

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.

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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