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Baron Health Care Fund

Symbol BHCUXCUSIP: 06828M652
Symbol BHCUXCUSIP: 06828M652
SCT
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$17.62

Daily Change $0.19 (1.09%)
As of 07/16/2025

Net Assets

$141.44 M

As of 06/30/2025

Morningstar Rating™

As of 06/30/2025

Morningstar Medalist Rating™

medal Logo

GOLD

Inception date

04/30/2018

Prices & Performance

PricesAs of 07/16/2025

NAVDaily Change ($)Daily Change (%)MTDQTDYTD
$17.62$0.191.09%-1.07%-1.07%-8.47%
NAV$17.62
Daily Change ($)$0.19
Daily Change (%)1.09%
MTD-1.07%
QTD-1.07%
YTD-8.47%

PerformanceAs of 06/30/2025

Portfolio or IndexQTD1YTD11 Year3 Years5 YearsSince Inception 04/30/2018
BHCUX - Baron Health Care Fund - R6-5.06%-7.48%-11.48%0.81%4.67%8.83%
Russell 3000 Health Care Index-6.19%-2.56%-6.13%3.30%6.25%8.25%
Russell 3000 Index10.99%5.75%15.30%19.08%15.96%13.76%

Performance InformationAs of 06/30/2025

Performance statistics3 Years5 YearsSince Inception
Standard Deviation (%)14.4316.5217.66
Sharpe Ratio-0.270.110.35
Alpha (%)-2.29-1.540.57
Beta0.991.061.04
R-Squared (%)90.7083.4182.22
Tracking Error (%)4.416.787.47
Information Ratio-0.56-0.230.08
Upside Capture (%)92.1395.01100.49
Downside Capture (%)103.48101.5897.84
Source: FactSet SPAR. Except for Standard Deviation and Sharpe Ratio, the performance based characteristics above were calculated relative to the Fund's benchmark.

Risk & Return12/31/2019 - 12/31/2024

1 Source: FactSet SPAR.

Portfolio Holdings & Characteristics

HoldingsAs of 06/30/2025

HoldingSector% of Net Assets
Eli Lilly and Company
Eli Lilly and Company (LLY) is a multinational pharmaceutical company developing drugs in diabetes, oncology, immunology, and neuroscience. Its top-selling drugs include Mounjaro/Zepbound, Trulicity, Humalog, Alimta, Taltz, Humulin, and Jardiance.
We are investors in Lilly given its focus on industry-leading growth categories like diabetes, obesity, and oncology. Leading GLP-1 drugs Mounjaro/Zepbound offer superb blood sugar control for diabetics, can drive 20%-plus weight loss in obese patients, and likely improve cardiovascular outcomes in both diabetic and non-diabetic obese patients. We think GLP-1 drugs will become the standard of care for both diabetes and obesity, representing a $150 billion-plus market. We believe Lilly could triple revenues and achieve double-digit EPS growth by 2030.
Health Care13.1%
argenx SE
Argenx SE (ARGX) is a biotechnology company developing antibodies for the treatment of autoimmune disorders. The company is in the early years of the commercial launch of its drug Vyvgart (efgartigimod alfa) for a rare muscle weakness disorder.
Efgartigimod has potentially broad applicability in ameliorating overactive antibody-based diseases. Efgartigimod is a true "pipeline in a product," where the product itself is the platform, as it has the potential to be used against a diverse range of diseases—something that is rarely achieved in the biotechnology space. We expect the share price to increase as argenx proves its product’s effectiveness in multiple autoantibody disorders.
Health Care8.6%
Boston Scientific Corporation
Boston Scientific Corporation (BSX) is a global developer, manufacturer, and marketer of medical devices used in a broad range of interventional medical specialties.
We believe Boston Scientific can grow organically by at least high single digits, driven by new product launches, which, in turn, should generate 50+ basis points in margin growth and double-digits earnings growth annually. We think the combination of top-tier revenue growth and double-digit earnings growth will drive attractive returns in the years ahead.
Health Care6.1%
Stryker Corporation
Stryker Corporation (SYK) is one of the world's leading medical technology companies, known for its orthopedic implants and the Mako robotic system. It also offers a portfolio of medical, surgical, and neurovascular products.
We see Stryker as a high-quality compounder and anticipate long-term high single-digit revenue growth and double-digit EPS growth. It is a leading innovator, with new product launches including the 1788 camera for enhanced endoscopy imaging, System 9 power tools, and Insignia muscle-sparing implants. We believe Stryker is poised to benefit from the growing shift of orthopedic procedures from hospitals to ambulatory surgical centers, where it is well positioned to leverage its unique Mako robotic system.
Health Care5.0%
Intuitive Surgical, Inc.
Intuitive Surgical, Inc. (ISRG) manufactures and markets the da Vinci Surgical System, a robotic surgical system used for minimally invasive surgical procedures.
We believe a large number of medical procedures that are currently performed using open surgery will eventually be performed using Intuitive’s da Vinci system. Robotic surgery is less invasive than open surgery, and patients experience less blood loss, less nerve damage, reduced pain, and faster recovery. Intuitive generates a large and expanding portion of its revenue from recurring procedures. We expect revenue and earnings to grow at attractive rates as procedure volumes increase.
Health Care4.6%
Masimo Corporation
Masimo Corporation (MASI) is a global medical device company that manufactures and sells a variety of non-invasive patient monitoring technologies, including devices measuring pulse oximetry.
Masimo has been gaining market share as clinical studies have demonstrated that its proprietary monitoring technology is superior to competitor products. Masimo's razor-razorblade business model generates a recurring revenue stream from the sale of disposable fingertip sensors. The company operates in a core market of $9 billion for hospital monitoring and automation. In October 2024, activist investor Politan Capital won a proxy vote and is looking to catalyze a clean separation from the consumer audio business, which has been a distraction from the core health care business.
Health Care3.6%
Danaher Corporation
Danaher Corporation (DHR) is a leading manufacturer in the life sciences and diagnostics markets.
The company's key advantage is the Danaher Business System, designed to continuously improve performance in the areas of quality, delivery, cost, growth, and innovation. Through acquisitions, Danaher has built the leading business in bioprocessing, with a broad and diverse portfolio spanning the entire workflow. On the diagnostics side, Cepheid has become a gold standard for molecular testing at the point of care. We think Danaher is well positioned for growth as a pure-play life sciences and diagnostics company following the 2023 spinoff of an unrelated segment.
Health Care3.5%
Waters Corporation
Waters Corporation
Health Care3.5%
McKesson Corporation
McKesson Corporation (MCK) is a leading distributor of pharmaceuticals and medical supplies and also provides prescription technology solutions that connect pharmacies, providers, payers, and biopharmaceutical customers.
McKesson has taken steps to streamline the business and focus on high growth areas, oncology, and biopharma services. Management is targeting 12% to 14% long-term earnings growth, driven by 6% to 8% contribution from organic growth, plus operating leverage and 6% contribution from capital allocation. We believe the stock is inexpensive in light of the company's strong competitive position in growing end markets and earnings growth potential.
Health Care3.4%
Penumbra, Inc.
Penumbra, Inc.
Health Care3.2%
Total
54.5%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Contributors / DetractorsQuarterly as of 06/30/2025

Top ContributorsAverage WeightContribution
Insmed Incorporated1.90%0.55%
Intuitive Surgical, Inc.6.40%0.42%
IDEXX Laboratories, Inc.1.89%0.33%
HealthEquity, Inc.1.90%0.30%
RadNet, Inc.2.18%0.27%
Source: FactSet PA.

GICS Sector BreakdownAs of 06/30/2025

Sector

Health Care

93.8%

Cash & Cash Equivalents

6.2%

Sub-Industry

Health Care Equipment28.60%
Biotechnology20.30%
Pharmaceuticals17.30%
Life Sciences Tools & Services14.60%
Health Care Distributors3.40%
Health Care Supplies2.70%
Health Care Services2.40%
Managed Health Care2.20%
Health Care Facilities1.50%
Health Care Technology0.70%
051015202530
Health Care Equipment28.60%
Biotechnology20.30%
Pharmaceuticals17.30%
Life Sciences Tools & Services14.60%
Health Care Distributors3.40%
Health Care Supplies2.70%
Health Care Services2.40%
Managed Health Care2.20%
Health Care Facilities1.50%
Health Care Technology0.70%
051015202530

Portfolio CharacteristicsAs of 06/30/2025

DescriptionBaron Health Care Fund
Inception DateApril 30, 2018
Net Assets$141.44 million
# of Issuers / % of Net Assets35/93.8%
Turnover (3 Year Average)56.46%
Active Share65.9%
Median Market Cap$23.07 billion
Weighted Average Market Cap$164.58 billion
Gross Expense Ratio0.87%
Net Expense Ratio0.85%
As of FYE Current Expense Ratio Date04/30/2025
EPS Growth (3-5 year forecast)12.7%
Price/Earnings Ratio (trailing 12-month)41.3x
Price/Book Ratio5.6x
Price/Sales Ratio3.4x
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Distributions

Record DateEx DatePayable DateIncomeReturn of CapitalShort-Term Capital GainLong-Term Capital GainTotalRe-Invest NAVCalendar-Year Return
09/23/202409/24/202409/25/2024$0.0944$0.0000$0.0000$0.0000$0.0944$21.231.50%
11/22/202111/23/202111/24/2021$0.0000$0.0000$0.0186$0.2002$0.2188$20.7115.79%
09/22/202109/23/202109/24/2021$0.0000$0.0000$0.0842$0.0000$0.0842$22.5015.79%
11/23/202011/24/202011/25/2020$0.0000$0.0000$0.1863$0.0000$0.1863$17.1347.76%
For estimated distributions, visit the Tax Center