Baron Health Care Fund Exits Doximity Position
Baron Funds said in its Feb. 6, 2026 investor letter that the Baron Health Care Fund rose 13.10% (Institutional Shares) in Q4, outperforming the Russell 3000 Health Care Index's 11.92% and returning 10.28% for the full year versus the indexes' 14.56% and 17.15%. The letter identified Doximity (NYSE:DOCS) as a leading detractor—its shares closed at $33.32 on Feb. 5, 2026, down 23.91% one month and 57.95% over three months with a $6.273 billion market cap—and said Baron exited the position after disappointing guidance and budget uncertainty.
Key Points
- 1Reported 13.10% Q4 gain, outperforming Russell 3000 Health Care Index's 11.92% return
- 2Attributed strong quarterly performance to biotechnology stock selection, despite lagging full-year returns
- 3Exited Doximity after guidance cut and budget uncertainty, signaling cautious healthcare exposure for practitioners
Scoring Rationale
Official fund letter provides credible performance and exit details, but offers limited novelty and narrow investor scope.
Sources
Public references used for this report.
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