BAMCO, Inc. - Baron Emerging Markets Fund on ISC Co., Ltd.
Thesis
ISC is the dominant global supplier of elastomer semiconductor test sockets, which are gaining share as semiconductor complexity increases. The stock weakened despite earnings comfortably exceeding expectations, which Baron views as consolidation rather than deteriorating fundamentals. The manager retains long-term conviction in the company's technology position and exposure to advanced semiconductor testing.
“We see no deterioration in the company's fundamentals and retain long-term conviction.”
Key risks
- Market rotation away from leading-edge semiconductor technologies and AI enablers