Baron Funds, an investment management company, released its fourth-quarter investor letter for the “Baron Health Care Fund”. A copy of the letter can be downloaded here. The fund rose 13.10% (Institutional Shares) in the quarter, compared to a 11.92% gain for the Russell 3000 Health Care Index (benchmark) and a 2.40% gain for the Russell 3000 Index (the Index). The Fund returned 10.28% for the full year, compared to 14.56% and 17.15% gains for the indexes, respectively. Strong stock selection in biotechnology contributed to the Fund’s relative gains in the quarter. The Fund seeks to invest in businesses with secular growth opportunities, a sustainable competitive edge, and strong management. The firm believes that healthcare is a strong sector in the U.S. economy, offering attractive investment opportunities with positive momentum heading into 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Baron Health Care Fund highlighted Teva Pharmaceutical Industries Limited (NYSE:TEVA). Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israel-based pharmaceutical company. On February 5, 2026 Teva Pharmaceutical Industries Limited (NYSE:TEVA) stock closed at $34.80 per share. Teva Pharmaceutical Industries Limited (NYSE:TEVA) was 8.72%, and its shares gained 106.77% of their value over the last three months. Teva Pharmaceutical Industries Limited (NYSE:TEVA) has a market capitalization of $36.63 billion.
Baron Health Care Fund stated the following regarding Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its fourth quarter 2025 investor letter:
“Within pharmaceuticals, positive stock selection, driven by Teva Pharmaceutical Industries Limited (NYSE:TEVA), was mostly offset by underexposure to this better performing sub-industry. Teva has historically been known for its large generics business but is increasingly focused on growing its innovative pharmaceutical business, which now represents roughly half of the company’s profits. Austedo continues to see strong adoption in a significantly underpenetrated and underdiagnosed tardive dyskinesia market, Ajovy has gained share in chronic migraine, and Uzedy has launched successfully in schizophrenia. In addition, Teva is preparing to launch a long-acting formulation of olanzapine in the schizophrenia market. We are also encouraged by Teva’s internally developed duvakitug, now partnered with Sanofi, which has the potential to become a pipeline-in-a-product across multiple autoimmune conditions, including inflammatory bowel disease. Shares rose during the quarter as the outcome of Medicare drug price negotiations for Austedo proved more favorable than investors had feared, removing a meaningful overhang. We continue to believe Teva shares are undervalued relative to the long-term growth potential of its branded business.”
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held Teva Pharmaceutical Industries Limited (NYSE:TEVA) at the end of the third quarter, up from 57 in the previous quarter. While we acknowledge the risk and potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Teva Pharmaceutical Industries Limited (NYSE:TEVA) and shared a bullish thesis on the company. Teva Pharmaceutical Industries Limited (NYSE:TEVA) contributed to Greenlight Capital’s performance in Q4 2025. In addition, please check out our hedge fund investor letters Q4 2025 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.
