Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund appreciated 5.81%% (Institutional Shares) in the quarter compared to a 6.74% gain for the Russell 3000 Health Care Index (benchmark) and a 6.23% gain for the Russell 3000 Index (the Index). Since inception, the fund appreciated 13.02% on an annualized basis compared to an 11.47% gain for the benchmark and a 14.03% gain for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baron Health Care Fund highlighted stocks like Arcellx, Inc. (NASDAQ:ACLX) in its Q3 2024 investor letter. Headquartered in Redwood City, California, Arcellx, Inc. (NASDAQ:ACLX) engages in the development of various immunotherapies for patients with cancer and other incurable diseases. The one-month return of Arcellx, Inc. (NASDAQ:ACLX) was 10.59%, and its shares gained 106.70% of their value over the last 52 weeks. On October 31, 2024, Arcellx, Inc. (NASDAQ:ACLX) stock closed at $84.27 per share with a market capitalization of $4.53 billion.
Baron Health Care Fund stated the following regarding Arcellx, Inc. (NASDAQ:ACLX) in its Q3 2024 investor letter:
“Arcellx, Inc. (NASDAQ:ACLX) is a biotechnology company focused on cell therapies for multiple myeloma. Shares contributed this quarter after the company confirmed that data from its iMMagine-1 trial in late-line multiple myeloma will be presented at the American Society for Hematology conference later this year. This is the first set of pivotal data for Arcellx’s lead CAR-T treatment, and we expect it will look good. We are looking for superior safety data and comparable or better efficacy data than that of Legend/ Johnson & Johnson’s competing product Carvykti. Arcellx and partner Gilead/Kite have reported that they have not seen any significant neurological side effects, which would be a meaningful point of differentiation for the product.”
A scientist in a lab coat examining a microscope, looking at the details of the biotechnology company’s immunotherapies.
Arcellx, Inc. (NASDAQ:ACLX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Arcellx, Inc. (NASDAQ:ACLX) at the end of the second quarter which was 36 in the previous quarter. While we acknowledge the potential of Arcellx, Inc. (NASDAQ:ACLX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Arcellx, Inc. (NASDAQ:ACLX) and shared Baron Health Care Fund’s views on the company in the previous quarter. In its Q1 2024 investor letter Baron Health Care Fund expressed optimism about the future of multiple myeloma treatment highlighting Arcellx, Inc.’s (NASDAQ:ACLX) promising cell therapy platform, which could significantly advance this field. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.