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Baron Health Care Fund’s Q2 results highlight Insmed amid share slide

The Baron Health Care Fund gained 11.9% in Q2 2026, while Insmed, a top focus in the letter, fell 12.6% over one month after Brinsupri sales missed early expectations.

Wednesday, August 5, 2026 · Written up by our desk · Fund Industry

Baron Capital’s Baron Health Care Fund released its Q2 2026 investor letter, showing the fund gained 11.99% during the quarter compared with a 10.48% gain for the Russell 3000 Health Care Index and a 15.44% gain for the Russell 3000 Index.

According to the letter, strong stock selection across pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the fund’s relative performance, while limited exposure to managed care stocks weighed on results.

The letter also discussed Insmed Incorporated, which Baron said detracted from the fund’s performance in Q2. Insmed closed on August 3 at $98.45 per share, the stock fell 12.56% over the prior month, and it is down 11.59% over the past 52 weeks.

Baron attributed the recent pressure on Insmed’s shares to investors focusing on early signs of higher treatment discontinuations after first-quarter Brinsupri sales missed expectations, and it cited Insmed’s exit from the Nasdaq-100 Index as adding technical selling pressure, while maintaining a long-term positive view tied to Brinsupri’s market opportunity.

Latest closeNasdaq Comp. 26,363.44 ▼0.8%

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