ewsba.se
Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Health Care Fund”. A copy of the letter is available to download here. Baron Health Care Fund (the Fund) declined 6.97% (Institutional Shares) in the quarter, compared to the 4.88% decline for the Russell 3000 Health Care Index (the Benchmark) and the 3.96% decline for the Russell 3000 Index (the Index). The Fund appreciated 9.39% on an annualized basis since its inception, compared to the 8.97% gain for the Benchmark and the 13.26% gain for the Index. The disappointing stock selection drove the Fund’s underperformance in the quarter. Despite recent challenges, the Fund believes the long-term outlook for health care remains positive due to factors including an aging population, rising chronic disease rates, advances in biotechnology, and increased health care spending. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Baron Health Care Fund highlighted AstraZeneca PLC (NYSE:AZN). AstraZeneca PLC (NYSE:AZN) is a biopharmaceutical company that engages in the discovery and development of prescription medicines. On May 1, 2026, AstraZeneca PLC (NYSE:AZN) closed at $184.74 per share. One-month return of AstraZeneca PLC (NYSE:AZN) was -8.92%, and its shares gained 26.57% over the past 52 weeks. AstraZeneca PLC (NYSE:AZN) has a market capitalization of $286.4 billion.
Baron Health Care Fund stated the following regarding AstraZeneca PLC (NYSE:AZN) in its Q1 2026 investor letter:
"AstraZeneca PLC (NYSE:AZN) is a large, diversified multinational pharmaceutical company with a portfolio of innovative products and a broad pipeline that is driving, and should continue to drive, above-industry growth. Shares increased during the quarter as AstraZeneca's fourth-quarter results and 2026 revenue guidance exceeded consensus expectations, suggesting continued strength from its recently launched products. In March, the company also announced positive Phase 3 data for tozorakimab in chronic obstructive pulmonary disease, showing clinically meaningful reductions in exacerbations and supporting peak sales potential of $3 to $5 billion. We remain positive on AstraZeneca ahead of a number of additional clinical data readouts in the coming years, which should support sustained above-industry growth into the 2030s."
AstraZeneca PLC (NYSE:AZN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 52 hedge fund portfolios held AstraZeneca PLC (NYSE:AZN) at the end of the fourth quarter, compared to 54 in the previous quarter. While we acknowledge the potential of AstraZeneca PLC (NYSE:AZN) 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.
In another article, we covered AstraZeneca PLC (NYSE:AZN) and shared the list of best stem cell therapy stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.