5 days ago
5
Soumya Eswaran
Wed, February 11, 2026 astatine 8:14 AM CST 3 min read
Baron Fund, an concern absorption company, released its Q4 2025 missive for “Baron Durable Advantage Fund”. A transcript of the missive tin beryllium downloaded here. The Fund returned 2.6% successful the 4th quarter, which mirrored the S&P 500 Index’s 2.7% return. The Fund returned 16.6% successful 2025, compared to 17.9% for the Index and 16.1% summation for the Peer Group, Morningstar Large Growth Category average. Moving to 2026, successful an situation dominated by geopolitics, changing regulatory trends, and artificial intelligence, the Fund focuses connected investing successful high-quality, large-cap companies with coagulated competitory advantages, proven way record, and accordant shareholder returns. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.
In its fourth-quarter 2025 capitalist letter, Baron Durable Advantage Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) arsenic a notable contributor. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's starring shaper of integrated circuits and different semiconductor devices. On February 10, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) banal closed astatine $361.91 per share. One-month instrumentality of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 10.64%, and its shares are up 75.36% implicit the past 12 months. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a marketplace capitalization of $1.877 trillion.
Baron Durable Advantage Fund stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its 4th fourth 2025 capitalist letter:
"Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed to show during the 4th with shares up 9.0%, and up 55.5% successful 2025, driven by robust request for AI chips. After reporting its astir caller quarterly results, TSMC raised its 2025 gross maturation guidance from “close to mid-20s%” year-on-year successful the archetypal 4th to “around 30%” successful the second, and present to “close to mid-30s%” (in USD terms) arsenic “AI request continues to beryllium precise strong, adjacent stronger than we thought 3 months ago”7. We judge that TSMC’s competitory presumption successful leading-edge semiconductor manufacturing remains unmatched with a 90% marketplace stock (and 65% overall). TSMC’s unsocial positioning successful the marketplace is underlined by the company’s quality to rise prices arsenic request for its adjacent procreation nodes continues to beryllium robust. We besides judge that TSMC volition payment from a agelong duration of maturation underpinned by the AI buildout. Note that TSMC volition payment careless of the eventual marketplace stock divided betwixt NVIDIA, Advanced Micro Devices, OpenAI, oregon Anthropic and whether ASICs would garner immoderate important marketplace share. It’s the eventual picks and shovels supplier to AI."
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