Baron Health Care Fund fell 6.97% in Q1 2026 amid portfolio changes and market declines

In Q1 2026, the Baron Health Care Fund declined 6.97%, underperforming the broader market's 4.88% drop. The fund adjusted its portfolio by adding 9 new positions and exiting 11, ending with 41 holdings. Key moves included reacquiring shares in diagnostics companies Natera and BillionToOne, while selling Penumbra after its acquisition and McKesson due to valuation concerns. These changes reflect the fund's active management approach amid challenging market conditions.