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 Argenx SE (NASDAQ:ARGX). Argenx SE (NASDAQ:ARGX) designs and manufactures electrical, electronic, and fiber optic connectors. The one-month return of Argenx SE (NASDAQ:ARGX) was 10.20%, and its shares gained 16.02% of their value over the last 52 weeks. On July 30, 2025, Argenx SE (NASDAQ:ARGX) stock closed at $598.89 per share, with a market capitalization of $36.652 billion.
Baron Health Care Fund stated the following regarding Argenx SE (NASDAQ:ARGX) in its second quarter 2025 investor letter:
“Argenx SE (NASDAQ:ARGX is a biotechnology company best known for developing Vyvgart, the leading FcRn inhibitor for the treatment of autoimmune conditions. Shares declined after Q1 Vyvgart sales came in below elevated investor expectations due to a combination of seasonal factors (such as insurance reverification) and higher Medicare Part D utilization and associated discounts. Our conversations with management and neurologists continue to reinforce Vyvgart’s value as an important treatment option with strong long-term growth potential. The drug continues to launch well in both generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. Over time, we expect Vyvgart to demonstrate efficacy across an expanding range of autoantibody-driven autoimmune conditions, supported by encouraging Phase 2 myositis data recently presented by argenx at a major medical conference.”
A lab setting filled with scientific equipment and researchers in lab coats working together to develop new therapies for autoimmune diseases.
Argenx SE (NASDAQ:ARGX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Argenx SE (NASDAQ:ARGX) at the end of the first quarter, which was 47 in the previous quarter. While we acknowledge the potential of Argenx SE (NASDAQ:ARGX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.