Baron Funds, an investment management company, released the “Baron Health Care Fund” in the third quarter of 2022 investor letter. A copy of it can be downloaded here. In the third quarter, the fund fell 6.01% compared to a 4.72% decline for the Russell 3000 Health Care Index. The fund’s poor performance in the quarter was due to poor stock selection. In addition, please review the fund’s top five holdings to find out its best picks in 2022.
Baron Funds featured stocks like Danaher Corporation (NYSE:DHR) in the third quarter 2022 investor letter. Headquartered in Washington, District of Columbia, Danaher Corporation (NYSE:DHR) operates through the Life Sciences, Diagnostics, and Environmental & Applied Solutions segments. On October 17, 2022, Danaher Corporation (NYSE:DHR) stock closed at $259.93 per share. Danaher Corporation (NYSE:DHR)’s one-month return is -5.26% and its shares have lost 15.74% of their value over the past 52 weeks. Danaher Corporation (NYSE:DHR) has a market capitalization of $189.085 billion.
Here’s what Baron Funds had to say specifically about Danaher Corporation (NYSE:DHR) in its Q3 2022 investor letter:
“We started a position at Danaher Corporation (NYSE:DHR). After announcing its intention to spin off its Environmental and Applied Solutions business, Danaher will become a pure play life sciences and diagnostics company. In the life sciences business, Danaher provides instruments for lab research, genomics services, and bioproduction tools. We are particularly interested in Danaher’s market-leading position and broad portfolio within bioprocessing, which addresses a biologics market that is growing by double digits and which we expect to benefit in the near term from a wave of biosimilars entering the market after the main patents expire. In the diagnostics business, Danaher offers instruments to run clinical tests in large core labs, hospitals, pathology labs, and at the point of care. Its systems for nucleic acid testing have particularly benefited from COVID testing, and we think point-of-care molecular testing can continue to drive growth in the diagnostics business. After the separation, we believe Danaher will be a business with 80% recurring revenue and targeting high single-digit organic revenue growth and double-digit EPS growth.”
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Danaher Corporation (NYSE:DHR) was not on our list of the 30 Most Popular Stocks in Hedge Funds. According to our database, 82 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the second quarter, up from 83 last quarter.
We discussed Danaher Corporation (NYSE:DHR) in another article and shared a list of diversified dividend stocks to buy. In addition, please see our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.