ETFs & Funds
Home›ETFs & Funds›Fund Industry›Baron Health Care Fund points to Yeztugo expectations…
Baron Health Care Fund points to Yeztugo expectations behind Gilead pullback
Gilead shares closed at $131.15 on August 3, and the fund said conservative 2026 Yeztugo sales guidance came in below investor expectations.
Baron Health Care Fund, part of investment manager Baron Capital, discussed Gilead Sciences in its Q2 2026 investor letter, citing a pullback in the HIV drug Yeztugo story after guidance shifted.
According to the letter, the fund had previously seen a strong first-quarter move tied to enthusiasm around the Yeztugo launch for HIV prevention, but Gilead detracted in the second quarter as shares fell after management issued what the fund described as conservative 2026 guidance in February.
The investor letter said management’s outlook included expectations for approximately $800 million of Yeztugo sales, which came in below investor expectations, contributing to the stock’s second-quarter underperformance versus the fund’s health care peers.
The fund’s broader performance in Q2 2026 was supported by stock selection across pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services, the letter said, while limited exposure to managed care stocks reduced relative returns. Yahoo Finance data cited alongside the letter showed Gilead closed at $131.15 per share on August 3, with a one-month return of -3.8% and a 52-week gain of 16.6%.