Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The first quarter was difficult for the fund, as it failed to participate in the broader market rally and declined 3.69% compared to the 3.27% decline for the benchmark Russell 3000 Health Care Index and a 7.50% increase for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Health Care Fund highlighted stocks like Zoetis Inc. (NYSE:ZTS) in the first quarter 2023 investor letter. Headquartered in Parsippany, New Jersey, Zoetis Inc. (NYSE:ZTS) is an animal health medicines, vaccines, and diagnostic products manufacturer. On May 17, 2023, Zoetis Inc. (NYSE:ZTS) stock closed at $178.94 per share. One-month return of Zoetis Inc. (NYSE:ZTS) was 2.60%, and its shares gained 12.80% of their value over the last 52 weeks. Zoetis Inc. (NYSE:ZTS) has a market capitalization of $82.69 billion.
Baron Health Care Fund made the following comment about Zoetis Inc. (NYSE:ZTS) in its Q1 2023 investor letter:
“Zoetis Inc. (NYSE:ZTS) is a global leader in the discovery, development, and manufacturing of companion and farm animal health medicines and vaccines, selling in more than 120 countries across eight core species. Shares rose after the company reported a fourth quarter revenue beat and issued 2023 guidance that met Street forecasts, calling for 6% to 8% operational growth and 7% to 9% adjusted net income growth despite higher R&D spend on late-stage pipeline products and manufacturing spend. Zoetis, which is growing 100 to 200 basis points above the industry’s 4% to 5% CAGR, should benefit from expanding demand for animal health products, driven by increasing consumption of animal proteins and the humanization of pets. Five key catalysts include products for osteoarthritis pain, parasiticides, dermatology, diagnostics, and emerging markets. Longer term, Zoetis should be able to achieve double-digit earnings growth on consistent revenue increases and an improving cost structure due to a more favorable product/species mix and manufacturing efficiencies. Strong operating cash flow helps facilitate capital deployment opportunities to supplement expansion.”
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Zoetis Inc. (NYSE:ZTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of the fourth quarter which was 62 in the previous quarter.
We discussed Zoetis Inc. (NYSE:ZTS) in another article and shared Morgan Stanley’s top five stock picks for 2023. In addition, please check out our hedge fund investor letters Q1 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.
