Baron Funds released its second-quarter 2025 investor letter for the Baron Health Care Fund, revealing a 5.06% decline in the quarter. The fund outperformed the Russell 3000 Health Care Index but lagged behind the Russell 3000 Index. Check out the fund’s top five holdings for insights into its 2025 picks.

Argenx SE (NASDAQ:ARGX) was highlighted in the Baron Health Care Fund’s investor letter. The stock, known for its electrical and electronic connectors, saw a 10.20% one-month return and gained 16.02% over the last 52 weeks. As of July 30, 2025, Argenx SE (NASDAQ:ARGX) closed at $598.89 per share, with a market cap of $36.652 billion.

Baron Health Care Fund’s investor letter discussed Argenx SE (NASDAQ:ARGX) as a leading biotech company due to its FcRn inhibitor, Vyvgart, for autoimmune conditions. Despite a recent decline in stock value, Vyvgart remains a promising treatment option with long-term growth potential for various autoimmune conditions, supported by positive Phase 2 myositis data.

Argenx SE (NASDAQ:ARGX) is not among the 30 most popular stocks among hedge funds, with 54 portfolios holding the stock at the end of the first quarter. While acknowledging its investment potential, some AI stocks are seen as offering greater upside with less downside risk. Investors seeking undervalued AI stocks should explore opportunities in the current market trends.

Read more at Yahoo Finance: Should You be Confident in Argenx SE (ARGX)?