Baron Health Care Fund Sold Option Care Health (OPCH) After Acquisition Announcement

Baron Funds, an investment management company, released its “Baron Health Care Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund advanced 9.22% (Institutional Shares) in the quarter compared to a 3.44% gain for the Russell 3000 Health Care Index (benchmark) and an 8.74% gain for the S&P 500 Index. Since its inception, on April 30, 2018, the fund gained 13.58% on an annualized basis, compared to the benchmark’s 10.85% gain and the S&P 500 Index’s 12.54% return. Favorable stock selection led the fund to outperform in the quarter. Investments in biotechnology, pharmaceuticals, and healthcare equipment accounted for most of the relative gains of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Health Care Fund highlighted stocks like Option Care Health, Inc. (NASDAQ:OPCH) in the second quarter 2023 investor letter. Headquartered in Bannockburn, Illinois, Option Care Health, Inc. (NASDAQ:OPCH) provides home and alternate site infusion services. On July 24, 2023, Option Care Health, Inc. (NASDAQ:OPCH) stock closed at $32.78 per share. One-month return of Option Care Health, Inc. (NASDAQ:OPCH) was 2.86%, and its shares gained 1.36% of their value over the last 52 weeks. Option Care Health, Inc. (NASDAQ:OPCH) has a market capitalization of $5.896 billion.

Baron Health Care Fund made the following comment about Option Care Health, Inc. (NASDAQ:OPCH) in its second quarter 2023 investor letter:

“We sold Option Care Health, Inc. (NASDAQ:OPCH) after the company announced its decision to acquire Amedisys, a publicly traded home health operator, because the acquisition would have increased the company’s exposure to Medicare reimbursement, which has been under pressure.”

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Option Care Health, Inc. (NASDAQ:OPCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Option Care Health, Inc. (NASDAQ:OPCH) at the end of first quarter which was 35 in the previous quarter.

We discussed Option Care Health, Inc. (NASDAQ:OPCH) in another article and shared the list of most promising medical stocks according to analysts. In addition, please check out our hedge fund investor letters Q2 2023 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.