Performance Overview - Baron International Growth Fund gained 16.91% during Q2 2025, outperforming its benchmark MSCI ACWI ex USA Index, which appreciated 12.03% [3] - The Fund has exceeded both the Benchmark and Proxy Benchmark on a one-year trailing basis [3] Annualized Performance - For the 1-year period ended June 30, 2025, the Fund's Institutional Shares returned 19.72%, compared to 17.72% for the MSCI ACWI ex USA Index [4] - Over the last 3 years, the Fund's Institutional Shares returned 10.34%, while the Benchmark returned 13.99% [4] Market Catalysts - The U.S. trade/tariff policy pivot and strong momentum towards a pro-growth tax reduction and fiscal spending bill were key drivers of global capital markets [5] - Despite tariff deferrals, there remains a risk of retaliation and a weaker U.S. dollar, which could shift capital flows towards non-dollar assets [5] Sector Performance - The Energy sector, particularly investments in Waga Energy SA, was the largest contributor to the Fund's relative performance [6] - Strong stock selection in Consumer Staples and Industrials sectors also contributed positively, while Health Care sector allocation detracted from performance [6] Country Contributions - Overweight positioning in Korea, particularly in shipbuilding, significantly contributed to relative performance [7] - Positive stock selection in France, India, and Israel also bolstered results, while China showed modest adverse stock selection effects [7] Top Contributors - HD Korea Shipbuilding & Offshore Engineering Co., Ltd. contributed 1.66% to returns, driven by improving profit margins and backlog growth [8] - Waga Energy SA and ODDITY Tech Ltd. also made significant contributions, with returns of 1.48% and 1.01% respectively [9] Top Detractors - Alibaba Group Holding Limited detracted 0.26% from performance due to results that fell short of investor expectations amid geopolitical uncertainty [12] - Full Truck Alliance Co. Ltd. and Argenx SE also detracted from performance due to revised earnings guidance and sales below expectations, respectively [13][14] Recent Activity - New investments were made in Centum Electronics Limited and XP Inc., focusing on global security and fintech disruption themes [22][24] - Increased exposure to existing positions, including AMG Critical Materials N.V. and SK hynix Inc., while exiting several positions to concentrate on higher conviction investments [26] Outlook - The Fund anticipates continued relative outperformance of non-U.S. equities, driven by changing U.S. priorities and fiscal expansion in the EU [30] - The focus remains on sectors and companies positioned to benefit from geopolitical shifts and technological advancements, particularly in Korea and India [32]

Core Insights - An Amazon vice president overseeing a significant project in artificial general intelligence is resigning, as confirmed by the company following a Reuters inquiry [1] Group 1 - The resignation is related to one of Amazon's highest profile projects, indicating the importance of leadership in this area [1]

Core Insights - Alphabet, the parent company of Google, has significant growth opportunities ahead, particularly in artificial intelligence (AI), self-driving technology, healthcare, and quantum computing [10][11][12] Company History and Growth - Google was founded in 1998 by Sergey Brin and Larry Page, quickly becoming a dominant player in internet search and generating substantial advertising revenue, which still constitutes nearly 75% of Alphabet's total revenue [4][5] - The company has successfully developed or acquired several key products, including Android, Chrome, Gmail, Google Maps, and YouTube, enhancing its market position [6] Revenue Streams - Google Cloud, launched in 2008, is now the fastest-growing major cloud services provider, contributing 14% to Alphabet's total revenue [7] - Advertising remains the primary revenue source, with a strong foundation established since the company's IPO in 2004 [5] Future Opportunities - Alphabet is exploring new markets, particularly in AI, with a focus on agentic AI and artificial general intelligence (AGI), which could revolutionize technology [10] - The Waymo unit is a leader in self-driving car technology, currently operating autonomous ride-hailing services in five cities [10] - In healthcare, Alphabet's initiatives like AlphaFold and Calico aim to advance drug discovery and extend human lifespan, while Verily focuses on precision health [11] - Google Quantum AI is making strides in quantum computing, with ambitions to develop a large-scale quantum computer by the end of the decade [12] Investment Potential - Alphabet's current market cap is approximately $3 trillion, and for a $10,000 investment to grow to $1 million, the company would need to reach a market cap of $300 trillion, which is considered improbable [13] - However, a larger initial investment, such as $100,000, could yield millionaire status over the next 20 years, driven by advancements in AI, robotaxis, and quantum computing [14]

Nvidia is preparing one of the largest investments in the history of artificial intelligence, pledging up to $100 billion in funding for OpenAI, the creator of ChatGPT. The deal comes hot on the heels of Nvidia pledging a $5 billion investment into Intel, its one-time rival and former American semiconductor champion. The companies jointly announced they had signed a letter of intent for a strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure ...

Core Insights - OpenAI and NVIDIA have announced a strategic partnership to deploy at least 10 gigawatts of NVIDIA systems for OpenAI's next-generation AI infrastructure, with NVIDIA planning to invest up to $100 billion progressively as each gigawatt is deployed [1][10] - The first phase of this deployment is expected to come online in the second half of 2026, utilizing the NVIDIA Vera Rubin platform [1][10] - This partnership aims to enhance AI capabilities and infrastructure, supporting OpenAI's mission to develop artificial general intelligence that benefits humanity [3][10] Company Collaboration - OpenAI will collaborate with NVIDIA as its preferred strategic compute and networking partner, co-optimizing their roadmaps for AI models and infrastructure software [2][3] - The partnership builds on a decade-long relationship between OpenAI and NVIDIA, which has included the development of AI systems used by hundreds of millions of people [2][3] Market Impact - OpenAI has achieved over 700 million weekly active users, indicating strong adoption across various sectors, including global enterprises and small businesses [3] - The partnership is expected to significantly advance the capabilities of AI infrastructure, potentially leading to new breakthroughs and scaling benefits to a wider audience [2][3]

Core Viewpoint - Alibaba Group Holding Ltd. is intensifying efforts to attract established brands from Amazon to its global e-commerce platform AliExpress, aiming to expand its presence in key markets like Europe and Latin America [1][2][5] Group 1: Strategy and Initiatives - AliExpress is promising lower shipping fees and a smaller cut of sales compared to Amazon to entice major brands [2] - The initiative is part of a broader strategy to increase customer acquisition and sales in competitive markets [2][5] - Alibaba plans to leverage its existing brand partnerships from its domestic platform T-Mall to enhance AliExpress offerings [3] Group 2: Market Context - Alibaba's previous attempts to penetrate the US market were unsuccessful, leading to the sale of its US platform to a competitor [5] - Despite challenges, the growth of international units and the success of competitors like PDD Holdings Inc.'s Temu and Shein Group Ltd. may motivate Alibaba to re-enter these markets [5][6] - Alibaba's foreign operations are primarily focused on regionally specific businesses such as Lazada in Southeast Asia and Trendyol in Turkey [6] Group 3: Financial Commitment - Alibaba has indicated a willingness to invest significantly in its e-commerce initiatives, with plans to allocate up to 50 billion yuan (approximately $7 billion) in subsidies to compete against JD.com [7]

Industry Overview - The rise of artificial intelligence (AI) has led to a significant tech boom, particularly in Australia, where 30,000 individuals are currently employed in the AI sector, with many start-ups attracting billions in venture capital [1][19] - The Australian tech industry's lobby group, Tech Council of Australia, aims to increase AI jobs to 200,000 by 2030, emphasizing the need for further investment [17][19] Company Spotlight: Apate - Apate, a start-up founded from Macquarie University, has recently secured $2.5 million in seed funding and is known for deploying tens of thousands of AI-powered chatbots to combat global scams [1][2][32] - The founder, Dali Kaafar, developed a large language model (LLM) that trains chatbots to engage with scammers, utilizing real-life conversation videos for training [5][7][32] - Apate's chatbots exhibit various personalities and languages, designed to waste scammers' time and disrupt their operations [4][7][32] Company Spotlight: Heidi Health - Heidi Health, another AI start-up based in Melbourne, has developed a platform for the healthcare industry that assists doctors and veterinarians in generating patient notes from recorded conversations [13][14] - The company has gained significant clients globally and received funding from Blackbird, aiming to alleviate clinician burnout by saving time [14][16] Market Dynamics - The valuation of major tech companies has surged, with Nvidia reaching a valuation of $4 trillion, indicating the immense financial potential of the AI sector [20] - Concerns about the sustainability of AI valuations exist, with some analysts suggesting that the current hype may not reflect the true productivity of AI technologies [21][25] Regulatory and Ethical Considerations - There is an ongoing debate regarding the ethical implications of AI, particularly concerning the use of copyrighted material for training AI systems without compensating original creators [27][31][32] - The Tech Council of Australia is advocating for a balanced approach to regulation that considers the unique challenges posed by AI technologies [31]

Core Insights - Atlassian Corporation announced the appointment of Jason Warner to its Board of Directors, effective October 1, 2025 [1] - Jason Warner is the co-founder and co-CEO of poolside, an AI lab focused on developing foundation models for artificial general intelligence [1] Company Developments - The addition of Jason Warner to the Board is expected to enhance Atlassian's leadership in technology and growth [1] - Warner's experience at the intersection of technology and leadership aligns with Atlassian's strategic goals [1]

In the rosiest scenario artificial general intelligence will arrive and usher in a new world of economic growth of perhaps 20% a year.More mundane scenarios should also be considered, however https://t.co/R7bD5mWwlb ...

Partnership Agreement - Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) to advance their partnership and are working on finalizing a definitive agreement [2] - The focus remains on delivering AI tools with a commitment to safety [2] Corporate Structure and Funding - OpenAI plans to evolve its structure, allowing the nonprofit to control and have an equity stake in a public benefit corporation (PBC) [2][3] - The new equity stake for OpenAI is projected to exceed $100 billion, positioning it as one of the most well-resourced philanthropic organizations globally [3] - This recapitalization aims to raise capital to fulfill OpenAI's mission and enhance the nonprofit's resources for community impact [3] Regulatory and Legal Considerations - OpenAI is collaborating with the attorneys general of California and Delaware on its corporate structure [4] - The decision to maintain nonprofit control over the for-profit arm was influenced by feedback from civic leaders and regulators [4] Investment and Revenue Sharing - Microsoft has invested billions in OpenAI and has an agreement to share revenue until 2030 [5] - OpenAI is reportedly reworking its multi-billion-dollar agreement with Microsoft, which is critical to its restructuring plans [5] Timeline and Challenges - OpenAI's corporate restructuring may be delayed until next year due to ongoing negotiations with Microsoft [6]