Baron
Baron Health Care Fund
US Large-cap Healthcare
Dec 2024 → Sep 2026
Our archive holds 9 letters from this strategy, behind 52 investment theses and positions in 50 companies. Every quote below is copied verbatim from the letter it came from.
9 letters in 3 years · follow all of Baron for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Institutional Shares
- YTD+8.4%index +11.6%
- 1Y+22.6%index +24.9%
- 3Y · /yr+9.3%index +12.3%
- 5Y · /yr+1.8%index +6.5%
- Inception · /yr+10.8%index +10.5%
Index: Russell 3000 Health Care Index
| YTD | 1Y | 3Yper year | 5Yper year | Since inceptionper year | |
|---|---|---|---|---|---|
| Baron Health Care Fund | +8.4% | +22.6% | +9.3% | +1.8% | +10.8% |
| Russell 3000 Health Care Index | +11.6% | +24.9% | +12.3% | +6.5% | +10.5% |
Since inception: Since Inception (4/30/2018)
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We sold Madrigal Pharmaceuticals, Inc. to manage risk ahead of a competitor’s clinical trial readout.
We initiated a position in Biogen Inc., a neuroscience and immunology-focused biopharmaceutical company that we believe is in the early stages of a transformation.
We sold AstraZeneca PLC for the reasons discussed earlier.
We initiated a position in Humana Inc., the largest pure-play Medicare Advantage insurer in the U.S., because we believe the stock offers compelling margin recovery opportunities.
- TrimmedBillionToOne, Inc.Sep 2026
We reduced the positions in BillionToOne, Inc. and RadNet, Inc. due to valuation, though we maintain conviction in both companies.
We reduced the positions in BillionToOne, Inc. and RadNet, Inc. due to valuation, though we maintain conviction in both companies.
We added to positions in Johnson & Johnson (J&J), Merck & Co., Inc., and Vertex Pharmaceuticals Incorporated.
We added to positions in Johnson & Johnson (J&J), Merck & Co., Inc., and Vertex Pharmaceuticals Incorporated.
- ExitedXenon Pharmaceuticals Inc.Sep 2026
We chose to exit our position.
We sold Gilead Sciences, Inc. because of concerns about slowing growth of key growth driver Yeztugo.
We added to positions in Johnson & Johnson (J&J), Merck & Co., Inc., and Vertex Pharmaceuticals Incorporated.
We established a new position in Sartorius Stedim Biotech S.A. , which supplies equipment and reagents to biopharmaceutical companies for the production of biologic drugs.
We added to our position in Mettler-Toledo International Inc ., a company we have owned in the Fund since inception.
We sold Apogee Therapeutics, Inc. and Terns Pharmaceuticals, Inc. following announcements that they were being acquired, Apogee by AbbVie Inc. and Terns by Merck & Co., Inc. , another Fund holding .
We reduced our positions in AstraZeneca PLC and Ionis Pharmaceuticals, Inc. due to valuation.
We sold Apogee Therapeutics, Inc. and Terns Pharmaceuticals, Inc. following announcements that they were being acquired, Apogee by AbbVie Inc. and Terns by Merck & Co., Inc. , another Fund holding .
We reestablished positions in UnitedHealth and Elevance during the quarter as discussed below in the Recent Activity section.
We sold Stryker Corporation because of concerns about slowing hospital inpatient trends and hospital capex spending due to expiration of the ACA subsidies and stricter Medicaid eligibility requirements.
We added to our position in Revolution Medicines, Inc. , a biotechnology company developing medicines to treat cancers driven by rat sarcoma (RAS) mutations.
We reduced our positions in AstraZeneca PLC and Ionis Pharmaceuticals, Inc. due to valuation.
We reestablished positions in UnitedHealth and Elevance during the quarter as discussed below in the Recent Activity section.
Also held
- Mettler-Toledo International Inc.
- Thermo Fisher Scientific Inc.
- Eli Lilly and Company
- Teva Pharmaceutical Industries Limited
- UnitedHealth Group Incorporated
- Elanco Animal Health Incorporated
- Insmed Incorporated
- Intuitive Surgical, Inc.
- RadNet, Inc.
- Guardant Health, Inc.
- argenx SE
- BillionToOne, Inc.
- Roivant Sciences Ltd.
- Gilead Sciences, Inc.
- Welltower Inc.
- IDEXX Laboratories, Inc.
- Merck & Co., Inc.
- Johnson & Johnson
Its investment theses
- RadNet, Inc.Sep 2026RadNet, Inc. operates outpatient diagnostic imaging centers and is supported by secular growth in advanced imaging, new clinical indications, capacity expansion, and AI-enabled technology.
- Thermo Fisher Scientific Inc.Sep 2026Thermo Fisher Scientific Inc. is a life sciences tools company with scale, disciplined capital allocation, and margin expansion positioned to lead an उद्योग recovery.
- Teva Pharmaceutical Industries LimitedSep 2026Teva Pharmaceutical Industries Limited is transforming into a diversified innovative biopharmaceutical company with strong branded growth and a deepening pipeline.
- UnitedHealth Group IncorporatedSep 2026UnitedHealth Group Incorporated is a diversified health care and benefits company with long-term conviction supported by pricing power, Star positioning, and EPS growth targets.
- Eli Lilly and CompanySep 2026Eli Lilly and Company is a pharmaceutical leader with a strong GLP-1 franchise and next-generation metabolic pipeline targeting a very large market.
- Biogen Inc.Sep 2026Biogen Inc. is a neuroscience and immunology biopharmaceutical company in early transformation with a deep Phase 3 pipeline and expanding Alzheimer’s opportunity.
- Humana Inc.Sep 2026Humana Inc. is the largest pure-play Medicare Advantage insurer, with a margin recovery story, improving Stars, and attractive normalized earnings power.
- Revolution Medicines, Inc.Jun 2026Revolution Medicines develops RAS-targeted cancer drugs, with breakthrough pancreatic data and potential for rapid adoption and large peak sales.
- UnitedHealth Group IncorporatedJun 2026UnitedHealth provides diversified managed care services, with improving insurance-cycle fundamentals, AI-driven cost savings, and margin recovery potential.
- Elevance Health, Inc.Jun 2026Elevance Health offers diversified managed care services, with a favorable insurance cycle, AI cost benefits, and margin recovery upside.