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The next section was excerpted from the Baron Worldwide Progress Fund Q3 2025 Shareholder Letter.
Baron Worldwide Progress Fund® (the Fund) gained 6.04% (Institutional Shares) throughout the third quarter of 2025, whereas its major benchmark, the MSCI ACWI ex USA Index (the Benchmark), appreciated 6.89%. The MSCI ACWI ex USA IMI Progress Index (the Proxy Benchmark) gained 5.75% for the quarter. The Fund modestly underperformed the Benchmark whereas barely bettering the Proxy Benchmark throughout a stable quarter for international equities, in our view pushed by the onset of a Federal Reserve (the Fed) easing cycle and ongoing bulletins of large-scale funding associated to AI knowledge heart capability and graphics processing unit (GPU) commitments. We had been happy with our quarterly outcomes, and we stay comfortably forward of the Proxy Benchmark on a year-to-date and one-year trailing foundation.
Prime contributors to efficiency for the quarter
Lynas Uncommon Earths Restricted (OTCPK:LYSCF) is an Australia-based mining and exploration firm targeted on uncommon earth minerals. Shares almost doubled throughout the quarter as geopolitical and commerce tensions underscored the strategic significance of provide sources exterior China, which controls greater than two-thirds of worldwide uncommon earth manufacturing and roughly 80% of processing and refining capability. Costs for uncommon earth minerals and associated equities surged after the U.S. signaled assist for establishing value flooring to encourage non-China mining and manufacturing. We retain long-term conviction in Lynas’ earnings potential and strategic worth and stay shareholders.
Argenx SE (ARGX) is a biotechnology firm greatest recognized for growing Vyvgart, the main FcRn inhibitor for the therapy of autoimmune situations. Shares rose after second-quarter Vyvgart gross sales meaningfully exceeded investor expectations, rebounding from prior weak spot linked to seasonal elements (resembling insurance coverage reverification) and better Medicare Half D utilization and related reductions. Our conversations with administration and neurologists proceed to bolster Vyvgart’s worth as an essential therapy possibility with robust long-term progress potential. The drug continues to launch properly in generalized myasthenia gravis, and its launch in power inflammatory demyelinating polyneuropathy is off to a robust begin. Over time, we count on Vyvgart to display efficacy throughout an increasing vary of autoantibody-driven autoimmune situations, and we’re inspired by argenx’s progress with its subsequent pipeline candidate, ARGX-119, in neuromuscular ailments.
Lundin Mining Company (OTCPK:LUNMF) is a high-growth, international mining operator with an emphasis on copper and gold. Shares rose markedly throughout the quarter, initially following stable working and monetary outcomes. The inventory superior additional after competitor Freeport-McMoRan Inc. suspended manufacturing on the world’s second-largest copper mine as a result of a tragic mudslide, tightening international provide and triggering a market imbalance anticipated to persist for a while. Lundin Mining’s earnings have additionally benefited from the robust rise in gold costs over the previous yr. We retain conviction within the firm’s capital allocation, manufacturing progress, and earnings potential.
Prime detractors from efficiency for the quarter
Constellation Software program Inc. (OTCPK:CNSWF), a holding firm that owns and operates a big portfolio of vertical-market software program companies, detracted from efficiency. The corporate reported stable quarterly monetary outcomes, however shares declined as a result of broader uncertainty across the influence of AI on software program and the surprising announcement that President Mark Leonard would step down for well being causes, although he’ll stay on the board. We retain conviction that Constellation can proceed compounding free money stream per share at a stable price. Whereas the corporate will not be resistant to macroeconomic headwinds, it advantages from a robust stability sheet, strong profitability and free money stream technology, and a diversified end-market combine.
InPost S.A. (OTCPK:INPOF)(OTCPK:INPOY), Poland’s main logistics operator with a quickly increasing pan-European presence, detracted from efficiency throughout the quarter. Allegro, Poland’s high e-commerce platform and InPost’s largest buyer—contributing round 15% of group income—has begun exploring various logistics options and partnering with a number of suppliers. This has raised considerations about potential quantity stress in Poland and additional market share erosion as soon as the present Allegro–InPost contract expires in 2027. Regardless of worst-case fears, we imagine a full exit by Allegro is unlikely. InPost controls roughly 70% of parcel lockers and 90% of out-of-home supply volumes in Poland, making an entire transition away from its community extremely disruptive to service high quality. We stay optimistic on InPost’s market management, increasing worldwide footprint, and rising shopper diversification.
ODDITY Tech Ltd. (ODD) intends to remodel the wonder and wellness market by utilizing proprietary applied sciences to promote completely on-line and launch progressive new merchandise. The corporate is uniquely positioned on the intersection of magnificence, wellness, and know-how, and is poised to capitalize on the patron shift towards e-commerce in classes which have traditionally relied on wholesale and high-touch retail fashions. Whereas ODDITY’s second-quarter outcomes exceeded administration and Road expectations, the magnitude of the beat was smaller than buyers anticipated, prompting shares to fall. Administration additionally supplied further element on prices associated to the launch of its third model and the anticipated stress on first-half 2026 EBITDA margins. We stay shareholders. ODDITY continues to speculate closely in progress whereas outperforming its long-term targets of 20% top-line progress and a 20% EBITDA margin. We keep conviction within the firm’s worth creation potential throughout its IL MAKIAGE and SpoiledChild strains, in addition to its new METHODIQ model.
Editor’s Observe: The abstract bullets for this text had been chosen by Searching for Alpha editors.
Editor’s Observe: This text discusses a number of securities that don’t commerce on a significant U.S. trade. Please pay attention to the dangers related to these shares.