Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSoumya EswaranWed, August 5, 2026 at 2:17 PM GMT+2 3 min readBaron Capital, an investment management company, released its Q2 2026 investor letter for the "Baron Health Care Fund". A copy of the letter is available to download here. The Fund gained 11.99% during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index and the 15.44% gain for the Russell 3000 Index. Since inception, the Fund appreciated 10.61% on an annualized basis, compared with 10.02% for the Benchmark and 14.83% for the Index. Strong stock selection in pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the Fund's outperformance, although limited exposure to managed care stocks reduced relative returns. The Fund remains positive on health care due to improving biotechnology funding, strong acquisition activity, recovering managed care margins, and growth from an aging population, chronic disease, medical innovation, and higher health care spending. In addition, please check the Fund's top five holdings to know the best picks in 2026.In its second-quarter 2026 investor letter, Baron Health Care Fund highlighted Apogee Therapeutics, Inc. (NASDAQ:APGE). Apogee Therapeutics, Inc. (NASDAQ:APGE) a clinical stage biotechnology company, develops novel biologics for the treatment of atopic dermatitis, asthma, eosinophilic esophagitis, chronic obstructive pulmonary disease, and other inflammatory and immunology indications. On August 04, 2026, Apogee Therapeutics, Inc. (NASDAQ:APGE) closed at $134.19 per share. One-month return of Apogee Therapeutics, Inc. (NASDAQ:APGE) was 1.05% and its shares gained 269.47% over the past 52 weeks. Apogee Therapeutics, Inc. (NASDAQ:APGE) has a market capitalization of $10.11 billion with a 52-week trading range between $34.34 - $134.46.Baron Health Care Fund stated the following regarding Apogee Therapeutics, Inc. (NASDAQ:APGE) in its Q2 2026 investor letter:"Favorable stock selection in biotechnology, mostly attributable to acquisition target Apogee Therapeutics, Inc. (NASDAQ:APGE), was partly offset by higher exposure to this underperforming sub-industry. In June, Apogee announced an agreement to be acquired by AbbVie Inc. for $135.11 per share, representing a 49.5% premium over the prior day's closing stock price. We sold Apogee Therapeutics, Inc. following announcements that it was being acquired by AbbVie Inc."Is Palvella Therapeutics Inc. (PVLA) the Best Performing NASDAQ Stock So Far in 2025?Apogee Therapeutics, Inc. (NASDAQ:APGE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Apogee Therapeutics, Inc. (NASDAQ:APGE) at the end of the first quarter which was 35 in the previous quarter. While we acknowledge the potential of Apogee Therapeutics, Inc. (NASDAQ:APGE) 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.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info