Baron Funds, an investment management company, released its “Baron Health Care Fund” fourth quarter 2024 investor letter. The Fund performed roughly in line with the Benchmark, during a challenging quarter for the larger health care industry. A copy of the letter can be downloaded here. The fund declined 9.58% (Institutional Shares) in the quarter compared to a 9.75% decline for the Russell 3000 Health Care Index (benchmark) and a 2.63% gain for the Russell 3000 Index (the Index). For the full year 2024, the fund appreciated 1.55% compared to 3.48% and 23.81% gains for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Baron Health Care Fund emphasized stocks such as Arcellx, Inc. (NASDAQ:ACLX). 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 -2.42%, and its shares gained 7.15% of their value over the last 52 weeks. On February 18, 2025, Arcellx, Inc. (NASDAQ:ACLX) stock closed at $64.26 per share with a market capitalization of $3.475 billion.
Baron Health Care Fund stated the following regarding Arcellx, Inc. (NASDAQ:ACLX) in its Q4 2024 investor letter:
“We added to the position in Arcellx, Inc. (NASDAQ:ACLX), a biotechnology company dedicated to developing cell therapies for multiple myeloma. Data presented at a recent medical conference showed that the company’s cell therapy is roughly as effective as the leading competitor cell therapy but without the risks of delayed neurotoxicity symptoms. In addition, through the company’s partnership with Gilead, the global leader in cell therapy, Arcellx may have a manufacturing advantage. We continue to think Arcellx is well positioned to capture a significant share of the $12 billion market opportunity for cell therapy for multiple myeloma.”
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 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Arcellx, Inc. (NASDAQ:ACLX) at the end of the third quarter which was 35 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.
Baron healthcare fund initiated a position in Arcellx, Inc. (NASDAQ:ACLX) during Q2 2023, focusing on cell therapy’s potential for multiple myeloma care. In Q1 2024, the fund increased its stake, but Arcellx, Inc. (NASDAQ:ACLX) dropped in Q2 2024 due to lack of news and competitor programs. However, Arcellx, Inc. (NASDAQ:ACLX) surged in Q3 2024, as its iMMagine-1 trial data for late-line multiple myeloma was confirmed for presentation at the American Society for Hematology conference later this year. In addition, please check out our hedge fund investor letters Q4 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.