Baron Fifth Avenue Growth Fund

Investor Summary

Alex Umansky serves as portfolio manager of Baron Fifth Avenue Growth Fund, bringing over 32 years of research experience to the role since joining Baron Capital in 2011. Prior to Baron, Umansky worked at Morgan Stanley where he co-managed several growth-oriented funds including the Morgan Stanley Opportunity Fund from 2007-2011, Global Opportunity Fund for two years, Morgan Stanley Information Fund from 2005-2006, and served as lead manager of the Morgan Stanley Technology Fund from 2000-2003. His extensive background spans technology and growth investing, with particular expertise in identifying secular growth companies with sustainable competitive advantages. Umansky holds a Bachelor of Science in Finance, Information Systems, and Mathematics from New York University Stern School of Business, earned in 1993. His investment approach emphasizes fundamental research, long-term value creation, and conviction-based portfolio construction focusing on companies positioned to benefit from transformative technology trends. Under his management since November 2011, the fund has maintained a concentrated approach with typically 20-30 high-conviction positions in large-cap growth companies.

Fund Strategy

The Baron Fifth Avenue Growth Fund seeks capital appreciation through investments primarily in securities of large-sized growth companies with market values greater than $5 billion. The fund employs a concentrated, long-term growth investment approach focusing on businesses the adviser believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and attractive valuation. Baron Capital emphasizes a long-term, fundamental, active approach to growth investing including proprietary five-year valuation models. The portfolio typically holds about 20 to 30 appropriately capitalized, competitively advantaged, well-run growth businesses at attractive prices. The investment process focuses on secular growth trends including cloud computing, artificial intelligence, e-commerce, semiconductors, and digital transformation technologies. Baron Capital seeks businesses that can double in value over the next 5-7 years with a threshold annualized return expectation of 15% over time.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
10.86%	24.56%	11.59%

Executive Summary

Baron Fifth Avenue Growth Fund gained 24.6% in Q2 2026, outperforming the Russell 1000 Growth Index by 790 basis points. The quarter mirrored 2025's pattern: a first quarter drawdown driven by geopolitical uncertainty followed by strong second quarter recovery as fears subsided. Stock selection drove all outperformance, contributing 940 basis points, with strength in Communication Services, Information Technology, and Health Care. SpaceX was the top contributor at 404 basis points, benefiting from its $85 billion IPO and landmark AI hosting agreements with Anthropic and Google totaling $26 billion annually. The manager views SpaceX as N=1, positioned at the intersection of AI and space economy with insurmountable competitive advantages. AI-driven companies including CrowdStrike, Datadog, and Snowflake demonstrated accelerating growth as AI creates structural demand. NVIDIA and TSMC continued exceptional performance despite valuation concerns. The portfolio's weighted average multiple expanded 12.2% in the quarter but remains 10.5% below its five-year average, with more than 100% of year-to-date returns driven by fundamental growth rather than multiple expansion. The manager remains focused on long-term value creation through disruptive change investments.

Core Thesis

The Fund invests in high quality, competitively advantaged, well-managed businesses positioned to benefit from disruptive change, with particular focus on companies at the intersection of transformative secular growth trends including AI, space economy, cloud migration, and digital transformation.

Forward Outlook

The manager remains purposefully indifferent to short-term market prognostications and focused on identifying high quality, competitively advantaged, well-managed businesses for the long term. More than 100% of the Fund's year-to-date return has been driven by growth in fundamentals rather than multiple expansion, which bodes well for prospective returns. The portfolio's weighted average multiple is 10.5% below its five-year average. The manager is optimistic about the long-term prospects of portfolio companies and continues to search for new ideas while remaining patient and investing only when companies trade at attractive prices relative to intrinsic values.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Aug 13 2026	2026 Q2	AMZN, APH, AVGO, CPNG, CRWD, DDOG, GOOGL, ISRG, LLY, NVDA, SHOP, SNOW, TSM	AI, Cloud, growth, innovation, large cap, semiconductors, Space, technology	-	Baron Fifth Avenue Growth Fund delivered 24.6% in Q2 2026, driven by SpaceX's transformative IPO and AI hosting deals, semiconductor strength from NVIDIA and TSMC, and accelerating AI adoption across CrowdStrike, Datadog, and Snowflake. The manager views SpaceX as the ultimate N=1 opportunity at the intersection of AI and space economy. Portfolio fundamentals drove returns with valuations remaining 10.5% below five-year averages, supporting continued long-term conviction.
Apr 29 2026	2026 Q1	AMZN, APH, ASML, META, NET, NVDA, SHOP, SNOW, TSM	AI, Cloud, Data centers, growth, large cap, semiconductors, technology	-	Baron Fifth Avenue Growth Fund matched benchmark performance despite 10% decline in Q1 2026. AI adoption accelerated dramatically with clear revenue evidence emerging. Portfolio concentrated on highest conviction AI winners while reducing software exposure. Current valuations 21% below historical averages create attractive opportunity despite geopolitical tensions and oil price volatility.
Feb 11 2026	2025 Q4	ADYEN, AMZN, ASML, AVGO, CPNG, CRWD, GOOGL, ILMN, IOT, KKR, MELI, META, MPWR, NOW, NVDA, SHOP, SNOW, TEAM, TSLA, TSM	AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology	GOOGL AVGO MPWR NVDA SHOP META CPNG MELI	Baron Fifth Avenue Growth Fund gained 18.2% in 2025, outperforming benchmarks by positioning for the AI transformation. The portfolio includes AI infrastructure leaders NVIDIA and new semiconductor positions Broadcom and Monolithic Power Systems, plus e-commerce platforms leveraging AI for competitive advantage. Despite some competitive pressures, the manager remains excited about companies adapting to this historic disruptive change.
Sep 30 2025	2025 Q3	AMZN, CRWD, GOOGL, GTLB, ISRG, KKR, LLY, MBLY, MELI, META, MSFT, NET, NOW, NVDA, ORCL, SHOP, TEAM, TSLA, TSM, TTD	AI, Cloud, growth, innovation, large cap, semiconductors, technology	NVDA SHOP TSLA GOOGL TSM TTD ISRG MELI KKR CRWD META	Baron Fifth Avenue Growth Fund underperformed in Q3 due to stock selection and Magnificent Seven underweight, but maintains strong conviction in AI transformation thesis. Portfolio emphasizes infrastructure providers like NVIDIA and platform companies with data advantages. Manager sees current environment as fundamentally different from dot-com bubble with more rational valuations and favorable rate outlook supporting long-term growth prospects.
Jun 30 2025	2025 Q2	ACAD.ST, ALLFG.L, AOF.DE, BFSA.MC, CELL.MI, DFS.L, DOM.L, EXRO, HEAD.L, INCH.L, MIDW.L, MON.MI, NOEJ.DE, OIE.L, PSG.MC, RHIM.L, RITN.SW, SESA.MI, STAB.DE, TGS.OL, TTK.DE	discount, Europe, Patience, Quality, small caps, value	DPZ.L RIEN.SW	EQUAM Global Value declined 3.9% in Q3 due to zero bank exposure and European small-cap focus. Portfolio of 45 quality companies trades at 112% upside potential. New Domino's UK investment capitalizes on 43% decline. Despite macro headwinds and elevated market valuations, fund positioned as best alternative for capital protection through patient value investing in abandoned European small-caps.
Mar 31 2025	2025 Q1	ALLFG.L, BFSA.MC, CELL.MI, DFS.L, DHG.L, ENO.MC, EXPO, INCH.L, KIN.BR, MRL.L, MTO.L, NOEJ.DE, OGN.L, RHI.L, SESA.MI, STM.DE, TGS.OL	Entertainment, Europe, small cap, Trade Policy, undervaluation, value	KIN.BR	EQUAM Global Value targets undervalued European small and mid-cap companies, gaining 7.1% in Q2 despite trade policy volatility. New cinema investment Kinepolis positioned for blockbuster recovery while multiple holdings unlock value through strategic reviews and takeovers. Fund maintains aggressive deployment with 2% cash, seeing 100% upside potential from persistent valuation discounts.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Aug 13 2026

2026 Q2

AMZN, APH, AVGO, CPNG, CRWD, DDOG, GOOGL, ISRG, LLY, NVDA, SHOP, SNOW, TSM

AI, Cloud, growth, innovation, large cap, semiconductors, Space, technology

Baron Fifth Avenue Growth Fund delivered 24.6% in Q2 2026, driven by SpaceX's transformative IPO and AI hosting deals, semiconductor strength from NVIDIA and TSMC, and accelerating AI adoption across CrowdStrike, Datadog, and Snowflake. The manager views SpaceX as the ultimate N=1 opportunity at the intersection of AI and space economy. Portfolio fundamentals drove returns with valuations remaining 10.5% below five-year averages, supporting continued long-term conviction.

Apr 29 2026

2026 Q1

AMZN, APH, ASML, META, NET, NVDA, SHOP, SNOW, TSM

AI, Cloud, Data centers, growth, large cap, semiconductors, technology

Baron Fifth Avenue Growth Fund matched benchmark performance despite 10% decline in Q1 2026. AI adoption accelerated dramatically with clear revenue evidence emerging. Portfolio concentrated on highest conviction AI winners while reducing software exposure. Current valuations 21% below historical averages create attractive opportunity despite geopolitical tensions and oil price volatility.

Feb 11 2026

2025 Q4

ADYEN, AMZN, ASML, AVGO, CPNG, CRWD, GOOGL, ILMN, IOT, KKR, MELI, META, MPWR, NOW, NVDA, SHOP, SNOW, TEAM, TSLA, TSM

AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology

GOOGL
AVGO
MPWR
NVDA
SHOP
META
CPNG
MELI

Baron Fifth Avenue Growth Fund gained 18.2% in 2025, outperforming benchmarks by positioning for the AI transformation. The portfolio includes AI infrastructure leaders NVIDIA and new semiconductor positions Broadcom and Monolithic Power Systems, plus e-commerce platforms leveraging AI for competitive advantage. Despite some competitive pressures, the manager remains excited about companies adapting to this historic disruptive change.

Sep 30 2025

2025 Q3

AMZN, CRWD, GOOGL, GTLB, ISRG, KKR, LLY, MBLY, MELI, META, MSFT, NET, NOW, NVDA, ORCL, SHOP, TEAM, TSLA, TSM, TTD

AI, Cloud, growth, innovation, large cap, semiconductors, technology

NVDA
SHOP
TSLA
GOOGL
TSM
TTD
ISRG
MELI
KKR
CRWD
META

Baron Fifth Avenue Growth Fund underperformed in Q3 due to stock selection and Magnificent Seven underweight, but maintains strong conviction in AI transformation thesis. Portfolio emphasizes infrastructure providers like NVIDIA and platform companies with data advantages. Manager sees current environment as fundamentally different from dot-com bubble with more rational valuations and favorable rate outlook supporting long-term growth prospects.

Jun 30 2025

2025 Q2

ACAD.ST, ALLFG.L, AOF.DE, BFSA.MC, CELL.MI, DFS.L, DOM.L, EXRO, HEAD.L, INCH.L, MIDW.L, MON.MI, NOEJ.DE, OIE.L, PSG.MC, RHIM.L, RITN.SW, SESA.MI, STAB.DE, TGS.OL, TTK.DE

discount, Europe, Patience, Quality, small caps, value

DPZ.L
RIEN.SW

EQUAM Global Value declined 3.9% in Q3 due to zero bank exposure and European small-cap focus. Portfolio of 45 quality companies trades at 112% upside potential. New Domino's UK investment capitalizes on 43% decline. Despite macro headwinds and elevated market valuations, fund positioned as best alternative for capital protection through patient value investing in abandoned European small-caps.

Mar 31 2025

2025 Q1

ALLFG.L, BFSA.MC, CELL.MI, DFS.L, DHG.L, ENO.MC, EXPO, INCH.L, KIN.BR, MRL.L, MTO.L, NOEJ.DE, OGN.L, RHI.L, SESA.MI, STM.DE, TGS.OL

Entertainment, Europe, small cap, Trade Policy, undervaluation, value

KIN.BR

EQUAM Global Value targets undervalued European small and mid-cap companies, gaining 7.1% in Q2 despite trade policy volatility. New cinema investment Kinepolis positioned for blockbuster recovery while multiple holdings unlock value through strategic reviews and takeovers. Fund maintains aggressive deployment with 2% cash, seeing 100% upside potential from persistent valuation discounts.

QUARTER	THEMES	TAGS
2026 Q2	AI AI is described as a transformative secular growth driver creating structural demand across cybersecurity, cloud platforms, and data infrastructure. The manager highlights AI-driven revenue acceleration in companies like CrowdStrike, Datadog, and Snowflake, with AI adoption strengthening core businesses. SpaceX is positioned at the intersection of AI and space economy, with terrestrial and orbital data center opportunities representing multi-trillion dollar markets.	AI inference AI agents AI adoption AI infrastructure AI models
	Space SpaceX is described as standing at the intersection of AI and space economy with insurmountable competitive advantages through reusable launch technology. The company has reduced launch costs by an order of magnitude and is positioned to dominate connectivity through Starlink, defense through Starshield, and AI hosting through terrestrial and orbital data centers. The manager views SpaceX as N=1 with no rivals in uniqueness and opportunity set.	Launch Starlink Starship Reusability Connectivity
	Semiconductors NVIDIA and Broadcom continue to perform exceptionally with unprecedented demand and strong growth outlooks. NVIDIA's Blackwell is the fastest ramping chip in company history with $500 billion of orders in 4.5 months. TSMC reported stellar results with 35% revenue growth and 58% EPS growth driven by AI demand consuming leading-edge capacity. The manager believes current valuations disconnect from AI bottleneck companies' growth trajectories.	GPUs ASICs Foundries AI chips Blackwell
	Cloud Cloud migration and digital transformation remain long-term secular growth drivers, with AI adding a meaningful new growth layer. AWS has grown to a $150 billion run rate despite competition, demonstrating market expansion rather than zero-sum dynamics. Cloud platforms are seeing AI-driven usage acceleration and strengthening fundamentals across the ecosystem.	AWS Cloud migration Digital transformation Cloud platforms
	Cybersecurity Cybersecurity is experiencing structural demand growth as AI makes bad actors more capable and dangerous. CrowdStrike described the Mythos moment with record sales pipelines and raised full-year revenue growth guidance by over 500 basis points. The manager views AI as driving compounding demand for cybersecurity that accelerates rather than decelerates.	CrowdStrike Mythos Security platforms AI threats
	GLP1 GLP-1 medications for diabetes and obesity represent a vastly underpenetrated market with over one billion people globally who could benefit. Eli Lilly is positioned as the clear leader with the most effective injectable treatment and strongest next-generation pipeline. The manager believes GLP-1s will become standard of care representing a $180 billion-plus category with meaningful optionality beyond obesity across multiple therapeutic areas.	Obesity Diabetes Zepbound Incretin Therapeutics
	Data Centers SpaceX has signed terrestrial data center hosting agreements with Anthropic and Google representing $26 billion of annualized revenue, with potential to scale to 10GW representing $200-400 billion opportunity. The company demonstrated ability to build a 100,000-GPU cluster in 122 days versus industry norm of two years. Orbital data centers represent a longer-term opportunity with unlimited power and space advantages.	AI hosting Compute infrastructure GPU clusters Orbital data centers
	E-commerce Shopify is described as the category-defining platform for modern commerce benefiting from durable secular growth in digital retail. The company posted healthy 30% GMV growth and 32% revenue growth with two decades of proprietary data providing a strong foundation for AI tools. Coupang is recovering from a data breach with 80% of WOW Membership recovered and returning members resuming prior spending levels.	Digital retail Commerce platforms GMV growth Merchant solutions
2026 Q1	AI AI adoption and usage dramatically accelerated in Q1 2026, with companies like Anthropic adding $21 billion in ARR in just over one quarter. Amazon AI reached $15 billion revenue run rate, and AWS custom chips business hit $20 billion ARR. The manager views AI as transformational for portfolio companies and believes we are on the cusp of something extraordinary.	Artificial Intelligence Machine Learning Inference Enterprise Revenue
	Semiconductors TSMC dominates advanced semiconductor foundry market with over 90% share of cutting-edge sub-7nm nodes that power AI servers. The company benefits from a virtuous cycle where massive scale generates capital for R&D and capex, widening technological moat. ASML holds monopoly on EUV lithography technology required for advanced chips.	Foundries Manufacturing Advanced Nodes Equipment Capacity
	Cloud Cloud infrastructure companies are benefiting from AI-driven demand. Amazon's AWS continues to be capacity constrained with growth limited by ability to serve demand. Snowflake's AI product suite became fastest growing offering in company history, generating over $100 million in annualized revenue.	Infrastructure Capacity Growth Services Platforms
	Data Centers Data center infrastructure spending is driving significant growth acceleration for companies like Amphenol, whose IT Datacom segment grew from less than $3 billion to $10 billion annual run rate over two years. The AI buildout is expected to continue driving demand for data center components and infrastructure.	Infrastructure Buildout Components Capacity Growth
2025 Q4	Dividends The Fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. The Investment Manager determines the highest yielding stocks by annualizing the last quarterly or semi-annual ordinary dividend and dividing by market value.	High Yield DJIA Income Dogs of Dow
	Risk Appetite The Fund limits exposure to market risk and volatility by investing approximately 50% of its assets in U.S. Treasury securities with maturity of less than one year. This balanced approach provides downside protection while maintaining equity exposure.	Treasury Volatility Balanced Risk Management
2025 Q3	AI AI infrastructure investment is accelerating with massive scale deals like Oracle's $455 billion backlog and NVIDIA's $100 billion OpenAI investment. Enterprise adoption remains early but tangible impact is growing across the ecosystem with over 50% of global VC investment going to AI startups.	Infrastructure Enterprise Investment Adoption Workloads
	Semiconductors TSMC maintains unmatched competitive positioning in leading-edge manufacturing with 90% market share in advanced nodes. The company benefits from robust demand for next-generation nodes and can raise prices while offsetting margin pressures from US fab expansion.	Manufacturing Advanced Demand Pricing Leadership
	Cloud Cloud computing continues strong growth with Microsoft Azure accelerating to 39% revenue growth despite bringing 2 GW of new datacenter capacity online. Demand continues to outstrip supply as AI workloads drive infrastructure expansion.	Infrastructure Growth Capacity Demand Expansion
	Cybersecurity CrowdStrike is seeing reacceleration in net new annualized recurring revenues driven by strong adoption of Falcon Flex offering. The company expects agentic AI to increase their opportunity by 100 times as asset protection complexity increases exponentially.	Platform Growth Adoption Protection Opportunity
	E-commerce Shopify delivered stellar results with 30% revenue growth driven by sustained market share gains and 29% GMV growth. The company benefits from successful expansion into offline, international, and B2B channels while developing agentic commerce capabilities.	Growth Market Share International Platform Commerce
2025 Q2	Value Fund invests in companies trading at significant discounts to intrinsic value with upside potential of 112%. Portfolio comprises 45 companies trading at attractive multiples with high-quality businesses and low debt levels. Manager emphasizes patience and long-term investment in sound businesses at excellent prices.	Discount Intrinsic Value Multiples Quality Patience
	Small Caps Fund focuses on European small and medium-sized companies, a market sector that has been abandoned by investors. Currently holds investments in 45 companies with concentration in European SMID cap arena for idea generation efforts.	European SMID Abandoned Concentration Opportunities
2025 Q1	Value The fund continues to focus on European small and mid-cap companies trading at unusually low valuations despite quality business models. The manager believes this valuation disconnect will eventually reverse, though timing remains uncertain.	Undervaluation Discount Intrinsic Value European Small Cap
	Trade Policy The first half was marked by US announcements of import duties on trading partners, creating market volatility and uncertainty. While duties were postponed for negotiations, the final impact on businesses remains unclear.	Import Duties Tariffs US Trade Protectionism Volatility
	Entertainment New investment in Kinepolis, a leading cinema operator, positioned to benefit from recovery in audience numbers as Hollywood blockbuster releases normalize after the 2023 actors' strike impact.	Cinema Kinepolis Blockbusters Recovery Entertainment

QUARTER

THEMES

AI

AI is described as a transformative secular growth driver creating structural demand across cybersecurity, cloud platforms, and data infrastructure. The manager highlights AI-driven revenue acceleration in companies like CrowdStrike, Datadog, and Snowflake, with AI adoption strengthening core businesses. SpaceX is positioned at the intersection of AI and space economy, with terrestrial and orbital data center opportunities representing multi-trillion dollar markets.

AI inference AI agents AI adoption AI infrastructure AI models

Space

SpaceX is described as standing at the intersection of AI and space economy with insurmountable competitive advantages through reusable launch technology. The company has reduced launch costs by an order of magnitude and is positioned to dominate connectivity through Starlink, defense through Starshield, and AI hosting through terrestrial and orbital data centers. The manager views SpaceX as N=1 with no rivals in uniqueness and opportunity set.

Launch Starlink Starship Reusability Connectivity

Semiconductors

NVIDIA and Broadcom continue to perform exceptionally with unprecedented demand and strong growth outlooks. NVIDIA's Blackwell is the fastest ramping chip in company history with $500 billion of orders in 4.5 months. TSMC reported stellar results with 35% revenue growth and 58% EPS growth driven by AI demand consuming leading-edge capacity. The manager believes current valuations disconnect from AI bottleneck companies' growth trajectories.

GPUs ASICs Foundries AI chips Blackwell

Cloud

Cloud migration and digital transformation remain long-term secular growth drivers, with AI adding a meaningful new growth layer. AWS has grown to a $150 billion run rate despite competition, demonstrating market expansion rather than zero-sum dynamics. Cloud platforms are seeing AI-driven usage acceleration and strengthening fundamentals across the ecosystem.

AWS Cloud migration Digital transformation Cloud platforms

Cybersecurity

Cybersecurity is experiencing structural demand growth as AI makes bad actors more capable and dangerous. CrowdStrike described the Mythos moment with record sales pipelines and raised full-year revenue growth guidance by over 500 basis points. The manager views AI as driving compounding demand for cybersecurity that accelerates rather than decelerates.

CrowdStrike Mythos Security platforms AI threats

GLP1

GLP-1 medications for diabetes and obesity represent a vastly underpenetrated market with over one billion people globally who could benefit. Eli Lilly is positioned as the clear leader with the most effective injectable treatment and strongest next-generation pipeline. The manager believes GLP-1s will become standard of care representing a $180 billion-plus category with meaningful optionality beyond obesity across multiple therapeutic areas.

Obesity Diabetes Zepbound Incretin Therapeutics

Data Centers

SpaceX has signed terrestrial data center hosting agreements with Anthropic and Google representing $26 billion of annualized revenue, with potential to scale to 10GW representing $200-400 billion opportunity. The company demonstrated ability to build a 100,000-GPU cluster in 122 days versus industry norm of two years. Orbital data centers represent a longer-term opportunity with unlimited power and space advantages.

AI hosting Compute infrastructure GPU clusters Orbital data centers

E-commerce

Shopify is described as the category-defining platform for modern commerce benefiting from durable secular growth in digital retail. The company posted healthy 30% GMV growth and 32% revenue growth with two decades of proprietary data providing a strong foundation for AI tools. Coupang is recovering from a data breach with 80% of WOW Membership recovered and returning members resuming prior spending levels.

Digital retail Commerce platforms GMV growth Merchant solutions

2026 Q1

AI

AI adoption and usage dramatically accelerated in Q1 2026, with companies like Anthropic adding $21 billion in ARR in just over one quarter. Amazon AI reached $15 billion revenue run rate, and AWS custom chips business hit $20 billion ARR. The manager views AI as transformational for portfolio companies and believes we are on the cusp of something extraordinary.

Artificial Intelligence Machine Learning Inference Enterprise Revenue

Semiconductors

TSMC dominates advanced semiconductor foundry market with over 90% share of cutting-edge sub-7nm nodes that power AI servers. The company benefits from a virtuous cycle where massive scale generates capital for R&D and capex, widening technological moat. ASML holds monopoly on EUV lithography technology required for advanced chips.

Foundries Manufacturing Advanced Nodes Equipment Capacity

Cloud

Cloud infrastructure companies are benefiting from AI-driven demand. Amazon's AWS continues to be capacity constrained with growth limited by ability to serve demand. Snowflake's AI product suite became fastest growing offering in company history, generating over $100 million in annualized revenue.

Infrastructure Capacity Growth Services Platforms

Data Centers

Data center infrastructure spending is driving significant growth acceleration for companies like Amphenol, whose IT Datacom segment grew from less than $3 billion to $10 billion annual run rate over two years. The AI buildout is expected to continue driving demand for data center components and infrastructure.

Infrastructure Buildout Components Capacity Growth

2025 Q4

Dividends

The Fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. The Investment Manager determines the highest yielding stocks by annualizing the last quarterly or semi-annual ordinary dividend and dividing by market value.

High Yield DJIA Income Dogs of Dow

Risk Appetite

The Fund limits exposure to market risk and volatility by investing approximately 50% of its assets in U.S. Treasury securities with maturity of less than one year. This balanced approach provides downside protection while maintaining equity exposure.

Treasury Volatility Balanced Risk Management

2025 Q3

AI

AI infrastructure investment is accelerating with massive scale deals like Oracle's $455 billion backlog and NVIDIA's $100 billion OpenAI investment. Enterprise adoption remains early but tangible impact is growing across the ecosystem with over 50% of global VC investment going to AI startups.

Infrastructure Enterprise Investment Adoption Workloads

Semiconductors

TSMC maintains unmatched competitive positioning in leading-edge manufacturing with 90% market share in advanced nodes. The company benefits from robust demand for next-generation nodes and can raise prices while offsetting margin pressures from US fab expansion.

Manufacturing Advanced Demand Pricing Leadership

Cloud

Cloud computing continues strong growth with Microsoft Azure accelerating to 39% revenue growth despite bringing 2 GW of new datacenter capacity online. Demand continues to outstrip supply as AI workloads drive infrastructure expansion.

Infrastructure Growth Capacity Demand Expansion

Cybersecurity

CrowdStrike is seeing reacceleration in net new annualized recurring revenues driven by strong adoption of Falcon Flex offering. The company expects agentic AI to increase their opportunity by 100 times as asset protection complexity increases exponentially.

Platform Growth Adoption Protection Opportunity

E-commerce

Shopify delivered stellar results with 30% revenue growth driven by sustained market share gains and 29% GMV growth. The company benefits from successful expansion into offline, international, and B2B channels while developing agentic commerce capabilities.

Growth Market Share International Platform Commerce

2025 Q2

Value

Fund invests in companies trading at significant discounts to intrinsic value with upside potential of 112%. Portfolio comprises 45 companies trading at attractive multiples with high-quality businesses and low debt levels. Manager emphasizes patience and long-term investment in sound businesses at excellent prices.

Discount Intrinsic Value Multiples Quality Patience

Small Caps

Fund focuses on European small and medium-sized companies, a market sector that has been abandoned by investors. Currently holds investments in 45 companies with concentration in European SMID cap arena for idea generation efforts.

European SMID Abandoned Concentration Opportunities

2025 Q1

Value

The fund continues to focus on European small and mid-cap companies trading at unusually low valuations despite quality business models. The manager believes this valuation disconnect will eventually reverse, though timing remains uncertain.

Undervaluation Discount Intrinsic Value European Small Cap

Trade Policy

The first half was marked by US announcements of import duties on trading partners, creating market volatility and uncertainty. While duties were postponed for negotiations, the final impact on businesses remains unclear.

Import Duties Tariffs US Trade Protectionism Volatility

Entertainment

New investment in Kinepolis, a leading cinema operator, positioned to benefit from recovery in audience numbers as Hollywood blockbuster releases normalize after the 2023 actors' strike impact.

Cinema Kinepolis Blockbusters Recovery Entertainment

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Feb 11, 2026	Fund Letters	Alex Umansky	GOOGL	Alphabet Inc.	Interactive Media & Services	Interactive Media & Services	Bull	NASDAQ	advertising, AI, Autonomous, backlog, cloud, Gemini, monetization, platform, Search	Login
Feb 11, 2026	Fund Letters	Alex Umansky	AVGO	Broadcom Inc.	Semiconductors & Semiconductor Equipment	Semiconductors	Bull	NASDAQ	accelerators, AI, backlog, diversification, hyperscalers, infrastructure, Margins, semiconductors, Software	Login
Feb 11, 2026	Fund Letters	Alex Umansky	MPWR	Monolithic Power Systems, Inc.	Semiconductors & Semiconductor Equipment	Semiconductors	Bull	NASDAQ	AI, Analog, Asp, Content, data centers, Electrification, growth, Power, semiconductors	Login
Feb 11, 2026	Fund Letters	Alex Umansky	NVDA	NVIDIA Corporation	Semiconductors & Semiconductor Equipment	Semiconductors	Bull	NASDAQ	AI, Cadence, CapEx, Competition, Ecosystem, GPUs, infrastructure, Margins, semiconductors	Login
Feb 11, 2026	Fund Letters	Alex Umansky	SHOP	Shopify Inc.	Information Technology	IT Services	Bull	New York Stock Exchange	Checkout, Commerce, Ecosystem, efficiency, innovation, Lending, monetization, Payments, platform	Login
Feb 11, 2026	Fund Letters	Alex Umansky	META	Meta Platforms, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	advertising, AI, CapEx, Engagement, Margins, monetization, ROAS, scale, Targeting	Login
Feb 11, 2026	Fund Letters	Alex Umansky	CPNG	Coupang, Inc.	Consumer Discretionary	Broadline Retail	Bull	New York Stock Exchange	Competition, Consumption, expansion, Fulfillment, investments, Logistics, Margins, scale, Security	Login
Feb 11, 2026	Fund Letters	Alex Umansky	MELI	MercadoLibre, Inc.	Consumer Discretionary	Broadline Retail	Bull	NASDAQ	Competition, ecommerce, Ecosystem, Fintech, Logistics, Margins, Promotions, TakeRates, Volatility	Login
Sep 30, 2025	Fund Letters	Alex Umansky	NVDA	NVIDIA Corporation	Information Technology	Semiconductors	Bull	NASDAQ	AI, datacenters, GPUs, infrastructure, semiconductors	Login
Sep 30, 2025	Fund Letters	Alex Umansky	SHOP	Shopify Inc.	Information Technology	Application Software	Bull	New York Stock Exchange	AI, ecommerce, Merchants, Payments, SaaS	Login
Sep 30, 2025	Fund Letters	Alex Umansky	TSLA	Tesla, Inc.	Consumer Discretionary	Automobile Manufacturers	Bull	NASDAQ	AI, Autonomy, EVs, manufacturing, robotics	Login
Sep 30, 2025	Fund Letters	Alex Umansky	GOOGL	Alphabet Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	advertising, antitrust, cloud, Ecosystem, Search	Login
Sep 30, 2025	Fund Letters	Alex Umansky	TSM	Taiwan Semiconductor Manufacturing Company Limited	Information Technology	Semiconductors	Bull	New York Stock Exchange	AI, Foundry, Geopolitics, Nodes, Pricing	Login
Sep 30, 2025	Fund Letters	Alex Umansky	TTD	The Trade Desk, Inc.	Communication Services	Advertising	Bear	NASDAQ	advertising, Competition, CTV, Fees, Programmatic	Login
Sep 30, 2025	Fund Letters	Alex Umansky	ISRG	Intuitive Surgical, Inc.	Health Care	Health Care Equipment	Bull	NASDAQ	Hospitals, Procedures, Reimbursement, robotics, Surgery	Login
Sep 30, 2025	Fund Letters	Alex Umansky	MELI	MercadoLibre, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail	Bull	NASDAQ	ecommerce, Fintech, LatAm, Logistics, Payments	Login
Sep 30, 2025	Fund Letters	Alex Umansky	KKR	KKR & Co. Inc.	Financials	Asset Management & Custody Banks	Bull	New York Stock Exchange	Credit, Distribution, diversification, Fundraising, Insurance	Login
Sep 30, 2025	Fund Letters	Alex Umansky	CRWD	CrowdStrike Holdings, Inc.	Information Technology	Systems Software	Bull	NASDAQ	cybersecurity, Endpoint, Identity, SIEM, trust	Login
Sep 30, 2025	Fund Letters	Alex Umansky	META	Meta Platforms, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	advertising, AI, CapEx, Engagement, monetization	Login
Sep 30, 2025	Fund Letters	Baron Fifth Avenue Growth Fund	DPZ.L	Domino's Pizza Group PLC	Consumer Discretionary	Restaurants	Bull	London Stock Exchange	Capital-light, Consumer Discretionary, franchise expansion, market leader, market share gains, Master Franchisee, Pizza Delivery, royalties, UK	Login
Sep 30, 2025	Fund Letters	Baron Fifth Avenue Growth Fund	RIEN.SW	Rieter Holding AG	Industrials	Industrial Machinery	Bull	SIX Swiss Exchange	acquisition, arbitrage, Artificial Fibers, Capital Raise, Industrial Equipment, Normalized EBITDA, Switzerland, Textile Machinery	Login
Jun 1, 2025	Fund Letters	Baron Fifth Avenue Growth Fund	KIN.BR	Kinepolis	Communication Services	Movies & Entertainment	Bull	Euronext Brussels	Belgium, Cinema, consolidation, entertainment, FCF yield, operating leverage, premium services, Real Estate, turnaround, Value	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Feb 11, 2026

Fund Letters

Alex Umansky

GOOGL

Alphabet Inc.

Interactive Media & Services

Bull

NASDAQ

advertising, AI, Autonomous, backlog, cloud, Gemini, monetization, platform, Search

Feb 11, 2026

Fund Letters

Alex Umansky

AVGO

Broadcom Inc.

Semiconductors & Semiconductor Equipment

Semiconductors

Bull

NASDAQ

accelerators, AI, backlog, diversification, hyperscalers, infrastructure, Margins, semiconductors, Software

Feb 11, 2026

Fund Letters

Alex Umansky

MPWR

Monolithic Power Systems, Inc.

Semiconductors & Semiconductor Equipment

Semiconductors

Bull

NASDAQ

AI, Analog, Asp, Content, data centers, Electrification, growth, Power, semiconductors

Feb 11, 2026

Fund Letters

Alex Umansky

NVDA

NVIDIA Corporation

Semiconductors & Semiconductor Equipment

Semiconductors

Bull

NASDAQ

AI, Cadence, CapEx, Competition, Ecosystem, GPUs, infrastructure, Margins, semiconductors

Feb 11, 2026

Fund Letters

Alex Umansky

SHOP

Shopify Inc.

Information Technology

IT Services

Bull

New York Stock Exchange

Checkout, Commerce, Ecosystem, efficiency, innovation, Lending, monetization, Payments, platform

Feb 11, 2026

Fund Letters

Alex Umansky

META

Meta Platforms, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

advertising, AI, CapEx, Engagement, monetization

Sep 30, 2025

Fund Letters

Baron Fifth Avenue Growth Fund

DPZ.L

Domino's Pizza Group PLC

Consumer Discretionary

Restaurants

Bull

London Stock Exchange

Capital-light, Consumer Discretionary, franchise expansion, market leader, market share gains, Master Franchisee, Pizza Delivery, royalties, UK

Sep 30, 2025

Fund Letters

Baron Fifth Avenue Growth Fund

RIEN.SW

Rieter Holding AG

Industrials

Industrial Machinery

Bull

SIX Swiss Exchange

acquisition, arbitrage, Artificial Fibers, Capital Raise, Industrial Equipment, Normalized EBITDA, Switzerland, Textile Machinery

Jun 1, 2025

Fund Letters

Baron Fifth Avenue Growth Fund

KIN.BR

Kinepolis

Communication Services

Movies & Entertainment

Bull

Euronext Brussels

Belgium, Cinema, consolidation, entertainment, FCF yield, operating leverage, premium services, Real Estate, turnaround, Value

TICKER	COMMENTARY
CRWD	The discussion evolved from 'is AI going to disrupt cybersecurity' to organizations and even the frontier AI labs relying on Falcon as their AI-powered defender for the post-Mythos era. Even more consequential is how adversaries can use these new and future models to democratize destruction. Now, any human or agent can be a vibe hacker, or worse, wage serious cyber-attacks that threaten enterprise survival, nation/state continuity, and critical infrastructure operations... What I see is AI driving structural demand for cybersecurity that compounds, not decelerates. The AI enterprise is unfolding in real-time, and CrowdStrike is a necessity to secure it... It's on the backs of our strong Q1 results and the unprecedented market dynamics I see that we are raising our growth expectations for the full year net new ARR (annualized recurring revenue) by more than 500 basis points. CrowdStrike continues to be a core long-term holding in the Fund.
GOOGL	We did well in Communication Services (SpaceX and Alphabet). Broadcom signed a new long-term agreement with Alphabet, reducing the risk of Google insourcing. On the earnings call, Hock Tan, Broadcom's CEO, described it as 'a very, very strong agreement and it basically reflects the strength of the partnership we have simply because of the products we do... and any intellectual property we deploy into this whole program... it's a commitment that is very substantial in dollars. Very, very substantial amount of dollars.' SpaceX has recently signed its first terrestrial data center hosting agreements with Anthropic and Google, together representing $26 billion of annualized revenue.
AMZN	Amazon Web Services (AWS) is a useful case study. It began as the only major cloud provider and now competes with Azure and Google Cloud Platform, yet its revenue has grown to a $150 billion run rate as of the first quarter of 2026 as the overall cloud market expanded, making AWS a key driver of Amazon's success. Amazon is seeing growing success with Trainium. SpaceX has signed a partnership with Amazon to bring Cerebras' fast inference to AWS.
TSM	Taiwan Semiconductor Manufacturing Company Limited is the world's largest contract chipmaker and the leading manufacturer of advanced logic semiconductors used in modern AI accelerators. Shares rose 41.6% during the quarter as the company continues to report stellar financial results underpinned by AI demand with revenue growth of 35% year-on-year and EPS growth of 58%, with 66% gross margins and 58% operating margins. High-performance computing now represents the majority of TSMC's business. AI demand is consuming so much leading-edge capacity that smartphone and PC production is increasingly shifting to older technology nodes, reversing a dynamic that defined the foundry industry for much of the past decade. Management also raised its full-year outlook and increased capital spending to support demand that remains well above available supply. We retain long-term conviction in TSMC and view its leading-edge manufacturing monopoly, pricing power, and technology roadmap as durable advantages that support a long duration of growth.
DDOG	There is no change to our overall view that digital transformation and cloud migration are long-term secular growth drivers for our business, but we now have an additional secular growth driver with AI as we help our customers deliver more value with this transformative new technology. Observability and cloud monitoring platform Datadog, Inc. contributed to performance with the stock up 121.3% during the quarter after reporting its strongest results in years. Revenue accelerated to 32% year-over-year growth, marking the fourth consecutive quarter of acceleration and meaningfully exceeding consensus estimates. Operating margins and free cash flow also surpassed expectations. Management raised full-year revenue guidance by roughly $240 million against a $50 million beat, with next-quarter guidance implying continued strength. Critically, the strength was broad-based: non-AI core customer revenue growth accelerated into the mid-20% range at scale, while Datadog's AI-native customer cohort diversified and expanded to 22 customers spending more than $1 million annually. Net revenue retention reaccelerated into the low-120% range, and unit economics remained best-in-class with 80% gross margins and high-20% free cash flow margins. We view observability as a structural beneficiary of the AI buildout through cloud migration, faster application deployment, and an increasingly complex technology stack. These broadening growth drivers reinforce our conviction in the long-term thesis. Datadog continues to be a core long-term holding in the Fund.
NVDA	Since Google introduced its first TPU in 2016, investors have repeatedly worried that ASICs would disrupt NVIDIA. Yet NVIDIA's data center revenue has grown 225-fold, from about $830 million in 2016 to $187 billion in 2025. Have TPUs gained share over the past decade? Sure. Has NVIDIA lost as a result? Not even close. The market expanded dramatically, and NVIDIA's ecosystem has proven difficult to displace. It has the largest installed base, the broadest developer adoption, models are consistently optimized for its architecture, customers benefit from strong total cost of ownership and reliability, and utilization remains high because its architecture supports the widest range of use cases. The current price of NVIDIA's stock implies a terminal growth rate of 3% (GDP or less?), assuming weighted average cost of capital of 10%, starting next year. In other words, from 100%-plus growth this year, to 3% growth next year. We believe there is a disconnect between the valuation of NVIDIA, and for that matter, Broadcom and those of the AI bottleneck companies. If the market is right about NVIDIA, it is necessarily wrong about the AI bottleneck names, unless future AI demand is met by chips other than NVIDIA's GPUs or Broadcom's ASICs, which together effectively account for the entire market today, or unless their margins are effectively competed away. The reverse is also true. NVIDIA and Broadcom cannot trade as if AI is not real or not sustainable, while the broader AI buildout beneficiaries trade as if AI is just beginning. That said, both companies' growth outlooks are so strong that we do not need multiple expansion, though we believe that risk is skewed to the upside. Fundamentally, both companies continue to perform exceptionally well. NVIDIA's Blackwell, its latest generation GPU, is the fastest ramping chip in the company's history, gaining significant share in networking, where revenues tripled year-over-year, and demand remains unprecedented, with approximately $500 billion of orders booked in roughly 4.5 months, just as AI is beginning to demonstrate real ROI with roughly $175 billion of ARR. Lilly has made a landmark $1 billion co-innovation lab with NVIDIA, which is designed to virtually simulate complex molecular dynamics in silico before beginning physical trials and should help accelerate early-stage drug discovery.
SNOW	Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY 2027 outlook from 27% to 31% year-over-year growth... Across our business, AI is strengthening Snowflake on multiple levels simultaneously. Usage-based revenue businesses such as Datadog and Snowflake reported increased AI adoption and accelerating growth, leading to significant multiple expansion. Snowflake continues to be a core long-term holding in the Fund.
AVGO	We believe there is a disconnect between the valuation of NVIDIA, and for that matter, Broadcom and those of the AI bottleneck companies. NVIDIA and Broadcom cannot trade as if AI is not real or not sustainable, while the broader AI buildout beneficiaries trade as if AI is just beginning. That said, both companies' growth outlooks are so strong that we do not need multiple expansion, though we believe that risk is skewed to the upside. Broadcom also reported exceptional results, with semiconductor revenues up 79% year-over-year and AI semiconductor revenues up 143%. The company signed a new long-term agreement with Alphabet, reducing the risk of Google insourcing. On the earnings call, Hock Tan, Broadcom's CEO, described it as 'a very, very strong agreement and it basically reflects the strength of the partnership we have simply because of the products we do... and any intellectual property we deploy into this whole program... it's a commitment that is very substantial in dollars. Very, very substantial amount of dollars.'
SHOP	Shopify Inc., a leading global commerce platform serving merchants across online and offline channels, detracted from performance in the second quarter with the stock down 3.7%. The decline was driven by multiple compression (its P/E was down 8.5%) rather than any deterioration in the underlying business or fundamental outlook. Shopify continued to post healthy growth in gross merchandise volume and revenue, which were up 30% and 32% year-on-year, respectively. Instead, the pressure reflected investor concerns about the company's long-term positioning in a future state of e-commerce that may rely more heavily on AI-driven applications than traditional websites. We view those concerns as misplaced and see Shopify as an AI winner. Two decades of proprietary data across millions of merchants provide Shopify with a strong foundation for AI tools that improve merchant outcomes. Recent product releases also embed the platform more deeply within the emerging agentic commerce ecosystem while creating new monetization opportunities. We continue to believe that Shopify is the category-defining platform for modern commerce, benefiting from durable secular growth in digital retail, an expanding suite of merchant solutions, improving free cash flow, and a widening competitive moat.
ISRG	Intuitive Surgical, Inc. sells robotic-assisted surgical systems. Shares declined 13.7% after the company's first-quarter U.S. system placements came in below investor expectations. Medical device stocks also broadly underperformed the market amid concerns that health care utilization trends could decelerate following the expiration of Affordable Care Act subsidies. Concerns were further compounded by the potential impact of Medicaid work requirements expected to take effect in 2027. Despite these headwinds, which we view as short-term in nature, we believe Intuitive can continue to grow revenue at a mid-teens rate for many years and remain positive on the company's long-term growth outlook.
CPNG	Coupang, Inc., Korea's largest e-commerce platform, detracted from performance with shares down 7.7%. The stock came under pressure following first-quarter results, where in-line revenue was overshadowed by softer second-quarter guidance as capacity and supply chain investments made ahead of Coupang's 2025 data breach weighed on margins while customer volumes recovered. Sentiment was further weighed down by a record KRW 624.7 billion (about US $430 million) privacy fine stemming from an investigation into the breach, while a rotation of fast money into AI and semiconductor names added to the weakness. Despite these headwinds, our conviction remains intact. We view the margin pressure as temporary, and the fine removes a key overhang and reinforces our belief that the breach does not reflect a structural loss of market share. By the end of April, Coupang recovered roughly 80% of the post-breach decline in WOW Membership (its paid subscription program), with returning members resuming prior spending levels. We continue to view Coupang as a competitively advantaged e-commerce business gaining share in its core market while scaling Taiwan operations.
APH	We continued building our Amphenol Corporation position in the second quarter after initiating it in the first quarter. As a reminder, Amphenol is a leading provider of mission critical interconnect, sensor, and antenna solutions across a diverse set of end markets. The stock continues to be volatile as investor narratives shift around the relative value of copper versus optical architectures for AI. We continue to believe the market underestimates Amphenol's long-standing ability to innovate and adapt across cycles and end markets. Fundamentally, the company reported strong first quarter results, with 33% year-over-year organic growth and record orders of $9.4 billion. With book-to-bill well above 1.0 times, these results suggest a clear growth trajectory ahead.
LLY	We added to Eli Lilly & Company in the second quarter as we believe it remains a compelling big idea. Eli Lilly is best known for its GIP/GLP-1 medications for diabetes and obesity. Although awareness and adoption of these medications has grown rapidly in the past few years, the market remains vastly underpenetrated. In the U.S. alone, there are roughly 135 million obese or diabetic patients who would qualify for GLP-1 drugs, yet less than 15% are on a GLP-1 drug today. Globally, over one billion people could benefit from GLP-1 therapy, and international markets are even less penetrated. We think these drugs will continue to launch well as awareness and insurance coverage grows, and as Lilly generates more data to show the dramatic impact GLP-1 drugs can have on other medical comorbidities. We think that these drugs will become the standard of care and a $180 billion-plus category. We view Lilly as a clear leader in GLP-1s. Zepbound/Mounjaro appears to be the most effective injectable treatment currently available, while Orforglipron is positioned as the most convenient oral option. Lilly's U.S. market share has risen from below 50% at the start of 2025 to more than 60% today. Beyond Zepbound and Orforglipron, we believe Lilly has the strongest next-generation obesity pipeline, led by Retatrutide, a high-efficacy triple-agonist injectable, and Eloralintide, an amylin agonist that demonstrated Zepbound-like efficacy with excellent tolerability and could likely be combined with Zepbound. Lilly's incretin franchise also has meaningful optionality beyond obesity and type 2 diabetes. Zepbound has already shown efficacy in obstructive sleep apnea and heart failure, and we believe it could also prove useful in fatty liver disease and cardiovascular disease. Lilly is also studying brenipatide, a brain-penetrant GIP/GLP-1 agonist, in alcohol use disorder, major depressive disorder, opioid use disorder, schizophrenia, tobacco use disorder, bipolar disorder, and asthma. We also see potential use cases across autoimmune conditions and even in preventing inflammation-related cancers. Beyond obesity and GLP-1s, Lilly is building a highly diversified portfolio, reinforcing its position as one of the fastest-growing pharmaceutical companies even excluding its GLP-1 franchise. The company has made meaningful pipeline progress, with promising programs in early Alzheimer's, breast cancer, and cardiology that could each become $10 billion-plus opportunities over time. Management is also using Lilly's substantial cash flow to pursue aggressive, strategic business development that can further extend long-term growth. Year to date, Lilly has announced more than 10 strategic deals totaling over $25 billion in value. While most target early-stage platforms for long-term pipeline growth, the Centessa acquisition stands out as a nearer-term opportunity. The $6.3 billion upfront deal secures a de-risked potential blockbuster therapy for sleep and wake disorders slated for a 2028 launch, with additional upside in sleep apnea. We would also highlight Lilly's landmark $1 billion co-innovation lab with NVIDIA, which is designed to virtually simulate complex molecular dynamics in silico before beginning physical trials and should help accelerate early-stage drug discovery.

TICKER

COMMENTARY

CRWD

The discussion evolved from 'is AI going to disrupt cybersecurity' to organizations and even the frontier AI labs relying on Falcon as their AI-powered defender for the post-Mythos era. Even more consequential is how adversaries can use these new and future models to democratize destruction. Now, any human or agent can be a vibe hacker, or worse, wage serious cyber-attacks that threaten enterprise survival, nation/state continuity, and critical infrastructure operations... What I see is AI driving structural demand for cybersecurity that compounds, not decelerates. The AI enterprise is unfolding in real-time, and CrowdStrike is a necessity to secure it... It's on the backs of our strong Q1 results and the unprecedented market dynamics I see that we are raising our growth expectations for the full year net new ARR (annualized recurring revenue) by more than 500 basis points. CrowdStrike continues to be a core long-term holding in the Fund.

GOOGL

We did well in Communication Services (SpaceX and Alphabet). Broadcom signed a new long-term agreement with Alphabet, reducing the risk of Google insourcing. On the earnings call, Hock Tan, Broadcom's CEO, described it as 'a very, very strong agreement and it basically reflects the strength of the partnership we have simply because of the products we do... and any intellectual property we deploy into this whole program... it's a commitment that is very substantial in dollars. Very, very substantial amount of dollars.' SpaceX has recently signed its first terrestrial data center hosting agreements with Anthropic and Google, together representing $26 billion of annualized revenue.

AMZN

Amazon Web Services (AWS) is a useful case study. It began as the only major cloud provider and now competes with Azure and Google Cloud Platform, yet its revenue has grown to a $150 billion run rate as of the first quarter of 2026 as the overall cloud market expanded, making AWS a key driver of Amazon's success. Amazon is seeing growing success with Trainium. SpaceX has signed a partnership with Amazon to bring Cerebras' fast inference to AWS.

TSM

Taiwan Semiconductor Manufacturing Company Limited is the world's largest contract chipmaker and the leading manufacturer of advanced logic semiconductors used in modern AI accelerators. Shares rose 41.6% during the quarter as the company continues to report stellar financial results underpinned by AI demand with revenue growth of 35% year-on-year and EPS growth of 58%, with 66% gross margins and 58% operating margins. High-performance computing now represents the majority of TSMC's business. AI demand is consuming so much leading-edge capacity that smartphone and PC production is increasingly shifting to older technology nodes, reversing a dynamic that defined the foundry industry for much of the past decade. Management also raised its full-year outlook and increased capital spending to support demand that remains well above available supply. We retain long-term conviction in TSMC and view its leading-edge manufacturing monopoly, pricing power, and technology roadmap as durable advantages that support a long duration of growth.

DDOG

There is no change to our overall view that digital transformation and cloud migration are long-term secular growth drivers for our business, but we now have an additional secular growth driver with AI as we help our customers deliver more value with this transformative new technology. Observability and cloud monitoring platform Datadog, Inc. contributed to performance with the stock up 121.3% during the quarter after reporting its strongest results in years. Revenue accelerated to 32% year-over-year growth, marking the fourth consecutive quarter of acceleration and meaningfully exceeding consensus estimates. Operating margins and free cash flow also surpassed expectations. Management raised full-year revenue guidance by roughly $240 million against a $50 million beat, with next-quarter guidance implying continued strength. Critically, the strength was broad-based: non-AI core customer revenue growth accelerated into the mid-20% range at scale, while Datadog's AI-native customer cohort diversified and expanded to 22 customers spending more than $1 million annually. Net revenue retention reaccelerated into the low-120% range, and unit economics remained best-in-class with 80% gross margins and high-20% free cash flow margins. We view observability as a structural beneficiary of the AI buildout through cloud migration, faster application deployment, and an increasingly complex technology stack. These broadening growth drivers reinforce our conviction in the long-term thesis. Datadog continues to be a core long-term holding in the Fund.

NVDA

Since Google introduced its first TPU in 2016, investors have repeatedly worried that ASICs would disrupt NVIDIA. Yet NVIDIA's data center revenue has grown 225-fold, from about $830 million in 2016 to $187 billion in 2025. Have TPUs gained share over the past decade? Sure. Has NVIDIA lost as a result? Not even close. The market expanded dramatically, and NVIDIA's ecosystem has proven difficult to displace. It has the largest installed base, the broadest developer adoption, models are consistently optimized for its architecture, customers benefit from strong total cost of ownership and reliability, and utilization remains high because its architecture supports the widest range of use cases. The current price of NVIDIA's stock implies a terminal growth rate of 3% (GDP or less?), assuming weighted average cost of capital of 10%, starting next year. In other words, from 100%-plus growth this year, to 3% growth next year. We believe there is a disconnect between the valuation of NVIDIA, and for that matter, Broadcom and those of the AI bottleneck companies. If the market is right about NVIDIA, it is necessarily wrong about the AI bottleneck names, unless future AI demand is met by chips other than NVIDIA's GPUs or Broadcom's ASICs, which together effectively account for the entire market today, or unless their margins are effectively competed away. The reverse is also true. NVIDIA and Broadcom cannot trade as if AI is not real or not sustainable, while the broader AI buildout beneficiaries trade as if AI is just beginning. That said, both companies' growth outlooks are so strong that we do not need multiple expansion, though we believe that risk is skewed to the upside. Fundamentally, both companies continue to perform exceptionally well. NVIDIA's Blackwell, its latest generation GPU, is the fastest ramping chip in the company's history, gaining significant share in networking, where revenues tripled year-over-year, and demand remains unprecedented, with approximately $500 billion of orders booked in roughly 4.5 months, just as AI is beginning to demonstrate real ROI with roughly $175 billion of ARR. Lilly has made a landmark $1 billion co-innovation lab with NVIDIA, which is designed to virtually simulate complex molecular dynamics in silico before beginning physical trials and should help accelerate early-stage drug discovery.

SNOW

Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY 2027 outlook from 27% to 31% year-over-year growth... Across our business, AI is strengthening Snowflake on multiple levels simultaneously. Usage-based revenue businesses such as Datadog and Snowflake reported increased AI adoption and accelerating growth, leading to significant multiple expansion. Snowflake continues to be a core long-term holding in the Fund.

AVGO

We believe there is a disconnect between the valuation of NVIDIA, and for that matter, Broadcom and those of the AI bottleneck companies. NVIDIA and Broadcom cannot trade as if AI is not real or not sustainable, while the broader AI buildout beneficiaries trade as if AI is just beginning. That said, both companies' growth outlooks are so strong that we do not need multiple expansion, though we believe that risk is skewed to the upside. Broadcom also reported exceptional results, with semiconductor revenues up 79% year-over-year and AI semiconductor revenues up 143%. The company signed a new long-term agreement with Alphabet, reducing the risk of Google insourcing. On the earnings call, Hock Tan, Broadcom's CEO, described it as 'a very, very strong agreement and it basically reflects the strength of the partnership we have simply because of the products we do... and any intellectual property we deploy into this whole program... it's a commitment that is very substantial in dollars. Very, very substantial amount of dollars.'

SHOP

Shopify Inc., a leading global commerce platform serving merchants across online and offline channels, detracted from performance in the second quarter with the stock down 3.7%. The decline was driven by multiple compression (its P/E was down 8.5%) rather than any deterioration in the underlying business or fundamental outlook. Shopify continued to post healthy growth in gross merchandise volume and revenue, which were up 30% and 32% year-on-year, respectively. Instead, the pressure reflected investor concerns about the company's long-term positioning in a future state of e-commerce that may rely more heavily on AI-driven applications than traditional websites. We view those concerns as misplaced and see Shopify as an AI winner. Two decades of proprietary data across millions of merchants provide Shopify with a strong foundation for AI tools that improve merchant outcomes. Recent product releases also embed the platform more deeply within the emerging agentic commerce ecosystem while creating new monetization opportunities. We continue to believe that Shopify is the category-defining platform for modern commerce, benefiting from durable secular growth in digital retail, an expanding suite of merchant solutions, improving free cash flow, and a widening competitive moat.

ISRG

Intuitive Surgical, Inc. sells robotic-assisted surgical systems. Shares declined 13.7% after the company's first-quarter U.S. system placements came in below investor expectations. Medical device stocks also broadly underperformed the market amid concerns that health care utilization trends could decelerate following the expiration of Affordable Care Act subsidies. Concerns were further compounded by the potential impact of Medicaid work requirements expected to take effect in 2027. Despite these headwinds, which we view as short-term in nature, we believe Intuitive can continue to grow revenue at a mid-teens rate for many years and remain positive on the company's long-term growth outlook.

CPNG

Coupang, Inc., Korea's largest e-commerce platform, detracted from performance with shares down 7.7%. The stock came under pressure following first-quarter results, where in-line revenue was overshadowed by softer second-quarter guidance as capacity and supply chain investments made ahead of Coupang's 2025 data breach weighed on margins while customer volumes recovered. Sentiment was further weighed down by a record KRW 624.7 billion (about US $430 million) privacy fine stemming from an investigation into the breach, while a rotation of fast money into AI and semiconductor names added to the weakness. Despite these headwinds, our conviction remains intact. We view the margin pressure as temporary, and the fine removes a key overhang and reinforces our belief that the breach does not reflect a structural loss of market share. By the end of April, Coupang recovered roughly 80% of the post-breach decline in WOW Membership (its paid subscription program), with returning members resuming prior spending levels. We continue to view Coupang as a competitively advantaged e-commerce business gaining share in its core market while scaling Taiwan operations.

APH

We continued building our Amphenol Corporation position in the second quarter after initiating it in the first quarter. As a reminder, Amphenol is a leading provider of mission critical interconnect, sensor, and antenna solutions across a diverse set of end markets. The stock continues to be volatile as investor narratives shift around the relative value of copper versus optical architectures for AI. We continue to believe the market underestimates Amphenol's long-standing ability to innovate and adapt across cycles and end markets. Fundamentally, the company reported strong first quarter results, with 33% year-over-year organic growth and record orders of $9.4 billion. With book-to-bill well above 1.0 times, these results suggest a clear growth trajectory ahead.

LLY

We added to Eli Lilly & Company in the second quarter as we believe it remains a compelling big idea. Eli Lilly is best known for its GIP/GLP-1 medications for diabetes and obesity. Although awareness and adoption of these medications has grown rapidly in the past few years, the market remains vastly underpenetrated. In the U.S. alone, there are roughly 135 million obese or diabetic patients who would qualify for GLP-1 drugs, yet less than 15% are on a GLP-1 drug today. Globally, over one billion people could benefit from GLP-1 therapy, and international markets are even less penetrated. We think these drugs will continue to launch well as awareness and insurance coverage grows, and as Lilly generates more data to show the dramatic impact GLP-1 drugs can have on other medical comorbidities. We think that these drugs will become the standard of care and a $180 billion-plus category. We view Lilly as a clear leader in GLP-1s. Zepbound/Mounjaro appears to be the most effective injectable treatment currently available, while Orforglipron is positioned as the most convenient oral option. Lilly's U.S. market share has risen from below 50% at the start of 2025 to more than 60% today. Beyond Zepbound and Orforglipron, we believe Lilly has the strongest next-generation obesity pipeline, led by Retatrutide, a high-efficacy triple-agonist injectable, and Eloralintide, an amylin agonist that demonstrated Zepbound-like efficacy with excellent tolerability and could likely be combined with Zepbound. Lilly's incretin franchise also has meaningful optionality beyond obesity and type 2 diabetes. Zepbound has already shown efficacy in obstructive sleep apnea and heart failure, and we believe it could also prove useful in fatty liver disease and cardiovascular disease. Lilly is also studying brenipatide, a brain-penetrant GIP/GLP-1 agonist, in alcohol use disorder, major depressive disorder, opioid use disorder, schizophrenia, tobacco use disorder, bipolar disorder, and asthma. We also see potential use cases across autoimmune conditions and even in preventing inflammation-related cancers. Beyond obesity and GLP-1s, Lilly is building a highly diversified portfolio, reinforcing its position as one of the fastest-growing pharmaceutical companies even excluding its GLP-1 franchise. The company has made meaningful pipeline progress, with promising programs in early Alzheimer's, breast cancer, and cardiology that could each become $10 billion-plus opportunities over time. Management is also using Lilly's substantial cash flow to pursue aggressive, strategic business development that can further extend long-term growth. Year to date, Lilly has announced more than 10 strategic deals totaling over $25 billion in value. While most target early-stage platforms for long-term pipeline growth, the Centessa acquisition stands out as a nearer-term opportunity. The $6.3 billion upfront deal secures a de-risked potential blockbuster therapy for sleep and wake disorders slated for a 2028 launch, with additional upside in sleep apnea. We would also highlight Lilly's landmark $1 billion co-innovation lab with NVIDIA, which is designed to virtually simulate complex molecular dynamics in silico before beginning physical trials and should help accelerate early-stage drug discovery.

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FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

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