Baron Funds: “We Retain Conviction in AbbVie (ABBV)”

Baron Funds, an asset management firm, published its “Baron Health Care Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended March 31, 2022, Baron Health Care Fund (the “Fund”) declined 9.93% (Institutional Shares), compared with the 4.56% decline for the Russell 3000 Health Care Index (the “Benchmark”) and the 4.60% decline for the S&P 500 Index. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Health Care Fund mentioned AbbVie Inc. (NYSE:ABBV) and explained its insights for the company. Founded in 2013, AbbVie Inc. (NYSE:ABBV) is a North Chicago, Illinois-based publicly-traded biopharmaceutical company with a $246.3 billion market capitalization. AbbVie Inc. (NYSE:ABBV) delivered a 2.97% return since the beginning of the year, while its 12-month returns are up by 20.81%. The stock closed at $139.42 per share on June 13, 2022.

Here is what Baron Health Care Fund has to say about AbbVie Inc. (NYSE:ABBV) in its Q1 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a large pharmaceutical company best known for its product Humira, which has been the largest selling drug for over a decade. There has been investor concern around the Humira patent cliff starting in 2023, but AbbVie has done a nice job diversifying its pipeline with its acquisition of Allergan and development of other drugs. Investors have begun to rotate into AbbVie, given a single-digit earnings multiple in an environment of greater uncertainty. We retain conviction in AbbVie given its durable cash flow streams.”

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Our calculations show that AbbVie Inc. (NYSE:ABBV) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. AbbVie Inc. (NYSE:ABBV) was in 76 hedge fund portfolios at the end of the first quarter of 2022, compared to 82 funds in the previous quarter. AbbVie Inc. (NYSE:ABBV) delivered a -8.34% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on AbbVie Inc. (NYSE:ABBV) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.