From Kiplinger · · 1m
Tech Stocks Hold This Baron Emerging Markets Fund Back
Tech stocks drag down Baron Emerging Markets fund despite strong 50% gains since 2025.
In brief
Tech stocks drag down Baron Emerging Markets fund despite strong 50% gains since 2025. Baron Emerging Markets fund's 50% gain since 2025 trails MSCI EM Index's 66% return as tech stocks decline. Originally reported by Kiplinger.
Emerging markets stocks surge
Emerging markets stocks returned 39% over 12 months through August.
Baron fund lags benchmark
Baron Emerging Markets fund gained 24% but trails MSCI Emerging Markets Index.
Tech stocks pull back
Tech stocks in the fund declined 13% to 28% over two months.
Key tech holdings drop
Taiwan Semiconductor Manufacturing shares fell 13% while Samsung and SK hynix dropped 28% and 12%.
Fund manager's view
Manager Michael Kass remains 'quite encouraged' by fund's strong performance.
“quite encouraged”
Long-term fund outperforms
Baron Emerging Markets fund's 15-year annualized return of 6.3% ranks top 31% of emerging markets funds.
The bottom line
Baron Emerging Markets fund's 50% gain since 2025 trails MSCI EM Index's 66% return as tech stocks decline.
