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Baron Emerging Markets returned 24% over the 12 months through August, compared with 39% for the MSCI Emerging Markets Index. Recent declines in several major technology holdings have weighed on the fund, although its 15-year annualized return remains slightly ahead of the index.
Baron Emerging Markets returned 24% over the 12 months through August, trailing the 39% gain in the MSCI Emerging Markets Index, as recent declines in several large technology holdings weighed on the fund. The performance figures, reported by Kiplinger, mark a shift from a few months earlier, when the fund had been keeping better pace with its benchmark.
Technology shares that had helped the fund earlier in 2025 and 2026 became a source of pressure in recent months. At the portfolio’s last reported date, Taiwan Semiconductor Manufacturing accounted for 16% of assets. Its shares fell 13% over the two months cited in the report. Samsung Electronics, at 8% of the portfolio, declined 28% over the same period, while SK hynix, at 7%, fell 12%.
The report also identified Alibaba Group Holding and Tencent Holdings as drags on performance since the start of 2026. It did not give portfolio weights or return figures for those companies, so their individual contributions cannot be quantified from the information provided. The declines in the named holdings offer one explanation for the fund’s recent lag, but the report does not break down the entire performance gap by stock or sector.
The comparison looks different over other time frames. Since the start of 2025, the fund had gained a cumulative 50%, compared with a 66% return for the MSCI EM Index. Over 15 years, Baron Emerging Markets had an annualized return of 6.3%, slightly above the index’s 6.0%, and ranked among the top 31% of diversified emerging-markets stock funds, according to Kiplinger.
Recent Gains Reversed by Tech Weakness
The comparison shows how a fund’s performance can diverge from a broad market benchmark when a limited number of large holdings move sharply. TSMC, Samsung and SK hynix together represented 31% of assets at the last reported date, making their share-price declines relevant to the fund’s results. The report links those pullbacks to the recent underperformance, while also noting Chinese technology companies as additional drags.
For investors comparing the fund with emerging-market indexes, the time period matters. The 24% versus 39% figures cover the 12 months through August, while the 50% versus 66% comparison runs from the beginning of 2025. The longer-term annualized figures cover 15 years. These measurements describe different windows and should not be treated as interchangeable evidence of a lasting trend.
The figures also show why a strong absolute gain does not necessarily mean a fund has kept up with its benchmark. Baron’s 24% return was positive, but it was 15 percentage points below the index for the stated 12-month period. Past performance, including the fund’s longer-term record, does not establish how it will perform in the future. Emerging-market equities can be volatile, and investors can lose money.
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A Fund With a Longer-Term Lead
Baron Emerging Markets, ticker BEXFX, is a no-load mutual fund and a member of Kiplinger’s 25, the publication’s list of recommended no-load funds. That designation is editorial context rather than a guarantee of future results. The report’s central comparison is between the fund and the MSCI Emerging Markets Index, a benchmark for emerging-market equities.
In a report covering the quarter ended in June, manager Michael Kass said he remained “quite encouraged by the strong absolute performance of the fund.” His comment came as the fund’s cumulative return since the start of 2025 stood at 50%, even though the index was up 66% over that period. Kiplinger’s data also show a narrower, slight fund advantage across the 15-year annualized comparison: 6.3% against 6.0% for the index.
The timeline helps explain the mixed picture. The report says Baron had been keeping better pace with its benchmark a few months earlier, before recent weakness in prominent technology holdings. It does not provide a full month-by-month return series, so the exact point when the fund’s relative performance turned is not specified.
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The Full Performance Breakdown
The available figures do not establish how much each holding contributed to the fund’s benchmark shortfall. Kiplinger identifies several technology stocks and gives selected portfolio weights and share-price declines, but it does not supply a complete holdings-level attribution or explain how other sectors affected returns.
The precise dates behind some comparisons also remain limited: the report describes the stock declines as occurring over the “past two months” and identifies the broader fund comparison as the 12 months through August, but the supplied material does not specify the year for every reference point. Portfolio weights are reported only as of the fund’s last report, so they may not reflect current allocations. The material provides no later performance update or forecast.
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Watch the Next Fund Update
The next relevant evidence will be the fund’s subsequent performance and portfolio disclosures, which can show whether the named holdings remain large positions and whether their share-price moves continue to affect returns. Readers comparing results should match the same reporting dates and distinguish annualized long-term figures from cumulative gains over shorter periods.
No forecast or next milestone is provided in the source report. Until newer figures are available, the confirmed picture is limited to returns through August, the cited recent stock declines, the last-reported portfolio weights and the manager’s comments on the quarter ended in June.
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Key Questions
How did Baron Emerging Markets perform over the 12 months through August?
The fund gained 24%, compared with a 39% gain for the MSCI Emerging Markets Index over the same period, according to Kiplinger.
Which technology holdings weighed on the fund?
Kiplinger cited declines in Taiwan Semiconductor Manufacturing, Samsung Electronics and SK hynix. It also said Alibaba and Tencent had been drags since the start of 2026.
Was the fund behind its benchmark over every period cited?
No. It trailed over the 12 months through August and since the start of 2025, but its reported 15-year annualized return was 6.3%, slightly above the index’s 6.0%.
What did manager Michael Kass say about the fund?
In a report for the quarter ended in June, Kass said he was “quite encouraged by the strong absolute performance of the fund.”
Do the reported returns indicate how the fund will perform next?
No. The figures describe past performance and do not predict future results. Emerging-market investments can be volatile, and investors may lose money.
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