Baron Capital, an investment management company, released its Q2 2026 investor letter for the “Baron Health Care Fund”. A copy of the letter is available to download here. The Fund gained 11.99% during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index and the 15.44% gain for the Russell 3000 Index. Since inception, the Fund appreciated 10.61% on an annualized basis, compared with 10.02% for the Benchmark and 14.83% for the Index. Strong stock selection in pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the Fund’s outperformance, although limited exposure to managed care stocks reduced relative returns. The Fund remains positive on health care due to improving biotechnology funding, strong acquisition activity, recovering managed care margins, and growth from an aging population, chronic disease, medical innovation, and higher health care spending. In addition, please check the Fund’s top five holdings to know the best picks in 2026.
In its second-quarter 2026 investor letter, Baron Health Care Fund highlighted argenx SE (NASDAQ:ARGX). argenx SE (NASDAQ:ARGX) is a commercial-stage biopharma company that develops various therapies for the treatment of autoimmune diseases in the United States and internationally. On August 03, 2026, argenx SE (NASDAQ:ARGX) closed at $830.79 per share. The one-month return of argenx SE (NASDAQ:ARGX) was -9.69% and its shares gained 23.10% over the past 52 weeks. argenx SE (NASDAQ:ARGX) has a market capitalization of $51.66 billion with a 52-week trading range between $631.47 – $953.58.
Baron Health Care Fund stated the following regarding argenx SE (NASDAQ:ARGX) in its Q2 2026 investor letter:
“Biotechnology company argenx SE (NASDAQ:ARGX) is best known for developing Vyvgart, the leading FcRn inhibitor for the treatment of autoimmune conditions. Shares rose after a period of prior weakness, which may have been partly driven by the retirement of longtime CEO Tim Van Hauwermeiren in early 2026. We view the transition to Karen Massey, who previously led the company’s operations, as largely non-disruptive and believe she is well positioned to continue executing the company’s strategy. Shares also benefited from optimism ahead of several clinical readouts, including data from studies of Vyvgart in immune-mediated necrotizing myopathy and dermatomyositis, expected in the third quarter of 2026, as well as empasibrupart in multifocal motor neuropathy, expected in the fourth quarter of 2026. Vyvgart continues to launch well in generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy, where we believe it has established itself as an important treatment option. We expect Vyvgart to demonstrate efficacy across an expanding range of autoantibody-driven autoimmune conditions over time and remain encouraged by argenx’s pipeline progress.”
Argenx SE (NASDAQ:ARGX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held argenx SE (NASDAQ:ARGX) at the end of the first quarter which was 48 in the previous quarter. While we acknowledge the risk and potential of argenx SE (NASDAQ:ARGX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than argenx SE (NASDAQ:ARGX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered argenx SE (NASDAQ:ARGX) and shared the list of most promising growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
