Baron Funds, an investment management company, released its “Baron Health Care Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund declined 2.55% (Institutional Shares) in the quarter compared to a 1.02% decline for the Russell 3000 Health Care Index (benchmark) and a 3.22% gain for the Russell 3000 Index (the Index). The underperformance in the quarter was due to active sub-industry/market cap weights. 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 Q2 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 8.35%, and its shares gained 67.81% of their value over the last 52 weeks. On August 1, 2024, Arcellx, Inc. (NASDAQ:ACLX) stock closed at $58.65 per share with a market capitalization of $3.138 billion.
Baron Health Care Fund stated the following regarding Arcellx, Inc. (NASDAQ:ACLX) in its Q2 2024 investor letter:
“Arcellx, Inc. (NASDAQ:ACLX) is a biotechnology company dedicated to the manufacturing of cell therapies for multiple myeloma. Shares fell on a lack of news in the quarter. There have been no fundamental new issues in the space over the past few quarters beyond the well-telegraphed dynamics around competitor programs scaling the complex manufacturing involved in cell therapy. The next significant news flow will occur later in 2024 when Arcellx releases updates with partner Kite from the pivotal Phase 3 trial of its iMMagine-3 treatment for multiple myeloma. This trial is widely expected to work and will be the penultimate event required before filing for FDA approval.”
A laboratory with workers in masks and lab coats focused on analyzing cell therapies.
Arcellx, Inc. (NASDAQ:ACLX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Arcellx, Inc. (NASDAQ:ACLX) at the end of the first quarter which was 33 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. Baron Health Care Fund initiated a position in Arcellx, Inc. (NASDAQ:ACLX) during Q2 2023. In addition, please check out our hedge fund investor letters Q2 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.
