![]() Is benefiting from a focus on diabetes and obesity treatments - the company last month released strong new results for next-generation obesity drug tirzepatide - as well as new Alzheimer’s medications, with Lilly’s donanemab slowing disease progression in late-stage trials. One of the fund’s top holdings, Eli Lilly & Co. Which is developing a test that allows for screening for many types of cancer with a single blood draw. A new holding in the fund is Exact Sciences Corp. The managers are also tracking developments in blood-based screening for cancer. Which late last year got FDA clearance for a continuous glucose monitoring system for people aged two and older with all types of diabetes. And continuous glucose monitoring technology “could have utility among the much larger Type 2 diabetes population, including people who don’t use insulin. The technology is being adopted by people with diabetes using all types of insulin. New innovations the managers are watching now include advancements in continuous glucose monitoring, which helps people with diabetes monitor blood sugars. Focusing on the right tools, he said, “you can make real leaps.” “There was a vaccine that was created very, very quickly,” Riegelhaupt said, underscoring “some of the best of what the industry can do.” With the development of the messenger RNA technology used in the COVID shots as well as other types of RNA therapeutics, gene therapy, cell therapy and other advancements, “now we have this toolkit, and every disease needs its own sets of tools,” Riegelhaupt said. Speaking just after the end of the COVID public health emergency, the managers reflected on some of the positive healthcare transformations highlighted by the pandemic. The fund’s retail share class charges annual fees of 1.1%. ![]() The portfolio tends to be relatively concentrated, with about 40 or 50 stocks, and nearly half of assets were in the top 10 holdings as of late April. That doesn’t mean they hold a little bit of everything. Longer term trends like advancements in gene therapy, the aging of the population, the growing prevalence of diabetes and obesity and the increased adoption of Medicare Advantage, the private alternative to traditional Medicare, have helped shape their portfolio. “We tried to stick with what we do best,” said manager Neal Kaufman, by following the Baron Capital philosophy and “buying and holding companies that we think have competitive advantages and great management teams.”Īt the same time, Kaufman and Riegelhaupt keep their eyes on some overarching themes in a sector where innovation, regulation and litigation are constantly making and breaking investment opportunities. And while some competing funds got caught up in a pandemic-fueled IPO frenzy in the sector, “we weren’t spending every Monday morning chasing the next deal,” said Joshua Riegelhaupt, assistant portfolio manager. Many lower-quality companies that achieved lofty valuations over that period came crashing down. One key to that performance: The fund didn’t get distracted by the shiny objects in the sector.
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