Baron Capital, an investment management company, released its Q2 2026 investor letter for the "Baron Health Care Fund". A copy of the letter is available to download here. The Fund gained 11.99% during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index and the 15.44% gain for the Russell 3000 Index. Since inception, the Fund appreciated 10.61% on an annualized basis, compared with 10.02% for the Benchmark and 14.83% for the Index. Strong stock selection in pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the Fund's outperformance, although limited exposure to managed care stocks reduced relative returns. The Fund remains positive on health care due to improving biotechnology funding, strong acquisition activity, recovering managed care margins, and growth from an aging population, chronic disease, medical innovation, and higher health care spending. In addition, please check the Fund's top five holdings to know the best picks in 2026.
In its second-quarter 2026 investor letter, Baron Health Care Fund highlighted Mettler-Toledo International Inc. (NYSE:MTD). Mettler-Toledo International Inc. (NYSE:MTD) manufactures and supplies precision instruments and services in the Americas, Europe, Asia, and internationally. On August 03, 2026, Mettler-Toledo International Inc. (NYSE:MTD) closed at $1,445.00 per share. The one-month return of Mettler-Toledo International Inc. (NYSE:MTD) was 10.84%, and its shares gained 15.44% over the past 52 weeks. Mettler-Toledo International Inc. (NYSE:MTD) has a market capitalization of $28.95 billion..
Baron Health Care Fund stated the following regarding Mettler-Toledo International Inc. (NYSE:MTD) in its Q2 2026 investor letter:
"We added to our position in Mettler-Toledo International Inc. (NYSE:MTD), a company we have owned in the Fund since inception. Mettler is a leading global provider of precision instruments and services. The company's products are used in key R&D, quality control, and manufacturing processes for customers in the life sciences, food, and chemicals industries, among others. We believe Mettler has multiple competitive advantages, including its strong brand, product offering and large installed base; large direct sales and service network; global supply chain; sophisticated sales and marketing programs; longstanding local presence in fast growing emerging markets; and culture of operational excellence and execution. The company has a long track record of generating consistent earnings growth. In the quarter, Mettler's organic revenue growth rate and guidance were slightly below expectations. We thought the negative stock reaction was way overblown, leading to a valuation the stock had not seen in many years. We are confident that over the long-term Mettler can generate mid-teens or better annual earnings growth."

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