Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as The Cooper Companies, Inc. (NASDAQ:COO) in the third quarter 2024 investor letter. The Cooper Companies, Inc. (NASDAQ:COO) manufactures and markets contact lenses that operate through CooperVision and CooperSurgical segments. The one-month return of The Cooper Companies, Inc. (NASDAQ:COO) was -1.39%, and its shares lost 23.27% of their value over the last 52 weeks. On July 30, 2025, The Cooper Companies, Inc. (NASDAQ:COO) stock closed at $72.28 per share, with a market capitalization of $14.421 billion.
Baron Health Care Fund stated the following regarding The Cooper Companies, Inc. (NASDAQ:COO) in its second quarter 2025 investor letter:
“Offsetting the above was adverse stock selection in life sciences tools & services and health care supplies, where Exact Sciences Corporation and The Cooper Companies, Inc. (NASDAQ:COO) were the top detractors. CooperCompanies is a global medical device company with two business units: CooperVision, a leading manufacturer of soft contact lenses; and CooperSurgical, which focuses on women’s health care and fertility. CooperCompanies’ shares detracted from performance following mixed fiscal Q2 results. While CooperCompanies reported an EPS beat—supported by 7% organic growth at CooperVision versus the Street’s 5.5% estimate—the results were overshadowed by management’s acknowledgment of softening contact lens end markets due to macroeconomic headwinds and tighter channel inventories across the industry. Still, CooperCompanies maintained that it is positioned to outpace the market by approximately 150 basis points in fiscal 2025, driven by robust contact lens demand and stable pricing. Management cited ongoing margin expansion as another bright spot and projected continued strength throughout the year due to efficiency gains and favorable product mix. The global contact lens market benefits from long-term secular trends, including sustained demand for premium lenses, and CooperCompanies, which offers the industry’s broadest portfolio of specialty lenses, continues to gain share. We remain shareholders.”
A doctor wearing gloves and a mask holding a pair of contact lenses in their hand.
The Cooper Companies, Inc. (NASDAQ:COO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held The Cooper Companies, Inc. (NASDAQ:COO) at the end of the first quarter, which was 52 in the previous quarter. The Cooper Companies, Inc. (NASDAQ: COO) reported revenue of $1.002 billion in Q1 2025, reflecting a 6% year-over-year increase, with 7% organic growth. While we acknowledge the risk and potential of The Cooper Companies, Inc. (NASDAQ:COO) 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 The Cooper Companies, Inc. (NASDAQ:COO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Cooper Companies, Inc. (NASDAQ:COO) and shared the list of small-cap healthcare stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q2 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.
