Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund declined 6.05% (Institutional Shares) in the quarter compared to a 3.88% loss for the Russell 3000 Health Care Index and a 3.27% loss for the S&P 500 Index. Year-to-date through September 30, 2023, the fund declined 1.17%, compared to a 3.83% decline for the Russell 3000 Health Care Index and a 13.07% increase for the S&P 500 Index. The combination of stock selection and active sub-industry weights drove the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Health Care Fund highlighted stocks like Novo Nordisk A/S (NYSE:NVO) in the third quarter 2023 investor letter. Headquartered in Bagsvaerd, Denmark, Novo Nordisk A/S (NYSE:NVO) is a healthcare company. On October 19, 2023, Novo Nordisk A/S (NYSE:NVO) stock closed at $97.66 per share. One-month return of Novo Nordisk A/S (NYSE:NVO) was 6.97%, and its shares gained 87.41% of their value over the last 52 weeks. Novo Nordisk A/S (NYSE:NVO) has a market capitalization of $438.428 billion.
Baron Health Care Fund made the following comment about Novo Nordisk A/S (NYSE:NVO) in its Q3 2023 investor letter:
“Novo Nordisk A/S (NYSE:NVO) released SELECT trial results in early August showing that its GLP-1 weight loss medicine Wegovy reduced the risk of major adverse cardiovascular events compared to placebo by 20% in adults aged 45 or older who are overweight or obese and have established cardiovascular disease with no prior history of diabetes. Based on these compelling health benefits, investors concluded that the GLP-1 drug class would eventually be broadly covered by payors and broadly adopted in the U.S. This news drove sharp gains in Eli Lilly and Company and Novo Nordisk.
The announcement of Novo Nordisk’s SELECT trial results in early August demonstrated that these newer GLP-1s don’t just treat Type 2 diabetes and cause weight loss, they also benefit patients’ cardiovascular health. GLP-1s are being studied in other outcomes trials to demonstrate whether they have other health benefits. If these trials read out positively, we could be entering a new era with improved public health and lower downstream medical costs. The SELECT news sent shockwaves throughout the market as investors digested the potential impact of widespread adoption of GLP-1s on health care companies, food and beverage manufacturers, restaurants, retailers, and even tobacco and gaming companies.”
A biopharmaceutical laboratory with scientists in lab coats working on medicines. Editorial photo for a financial news article. 8k. –ar 16:9
Novo Nordisk A/S (NYSE:NVO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Novo Nordisk A/S (NYSE:NVO) at the end of second quarter which was 46 in the previous quarter.
We discussed Novo Nordisk A/S (NYSE:NVO) in another article and shared Jim Simons’ stock portfolio and the top stock picks. In addition, please check out our hedge fund investor letters Q3 2023 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.
