Baron Funds released its third-quarter 2025 investor letter for the Baron Health Care Fund, which rose 5.39% compared to the Russell 3000 Health Care Index. Solid stock selection was offset by negative effects from active sub-industry allocations and cash holdings in a rising market. Check out the fund’s top five holdings.

Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted in the Baron Health Care Fund’s investor letter, with a one-month return of 4.31% and a market capitalization of $214.253 billion. The company offers life sciences solutions, analytical instruments, specialty diagnostics, and biopharma services. Thermo Fisher Scientific Inc. stock closed at $567.39 per share on October 31, 2025.

Baron Health Care Fund added to its position in Thermo Fisher Scientific Inc. (NYSE:TMO) during the third quarter. The company offers life sciences tools and management expects growth to accelerate after a challenging period. Thermo Fisher is seen as a competitively advantaged business trading at a reasonable valuation with strong growth potential in the long term.

Thermo Fisher Scientific Inc. (NYSE:TMO) is ranked 26th on the list of 30 Most Popular Stocks Among Hedge Funds. In the second quarter, 117 hedge fund portfolios held TMO. The company’s revenue in the same quarter grew 3% to $10.85 billion. While TMO has investment potential, some AI stocks could offer greater upside with less downside risk.

Read more at Yahoo Finance: Here’s Why Baron Health Care Fund Added Thermo Fisher Scientific (TMO) to Its Portfolio