Baron Health Care Fund’s Q2 2026 Investor Letter

Baron Capital, an investment management company, released its Q2 2026 investor letter for the “Baron Health Care Fund”. The Fund gained 11.99% (Institutional Shares) during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index (the Benchmark) and the 15.44% gain for the Russell 3000 Index (the 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.

A copy of Baron Health Care Fund’s Q2 2026 investor letter can be downloaded here.