Here’s Why Argenx SE (ARGX) Slipped in Q1

Baron Capital, an investment management company, released its Q1 2026 investor letter for the “Baron Health Care Fund”. A copy of the letter is available to download here. Baron Health Care Fund (the Fund) declined 6.97% (Institutional Shares) in the quarter, compared to the 4.88% decline for the Russell 3000 Health Care Index (the Benchmark) and the 3.96% decline for the Russell 3000 Index (the Index). The Fund appreciated 9.39% on an annualized basis since its inception, compared to the 8.97% gain for the Benchmark and the 13.26% gain for the Index. The disappointing stock selection drove the Fund’s underperformance in the quarter. Despite recent challenges, the Fund believes the long-term outlook for health care remains positive due to factors including an aging population, rising chronic disease rates, advances in biotechnology, and increased health care spending. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Baron Health Care Fund highlighted stocks like Argenx SE (NASDAQ:ARGX). Argenx SE (NASDAQ:ARGX) is a commercial-stage biopharma company. On May 1, 2026, Argenx SE (NASDAQ:ARGX) closed at $783.50 per share. One-month return of Argenx SE (NASDAQ:ARGX) was 4.71%, and its shares gained 19.32% over the past 52 weeks. Argenx SE (NASDAQ:ARGX) has a market capitalization of $48.96 billion.

Baron Health Care Fund stated the following regarding Argenx SE (NASDAQ:ARGX) in its Q1 2026 investor letter:

“Higher exposure to lagging life sciences tools & services stocks and weak stock selection in biotechnology and health care services also contributed to the relative shortfall. Within biotechnology, a handful of holdings weighed on performance, with the principal detractor being Argenx SE (NASDAQ:ARGX), a company best known for developing Vyvgart, the leading FcRn inhibitor for the treatment of autoimmune conditions. The stock sold off due to operating expense guidance being above investor expectations and sales guidance for a seasonally weak Q1, neither of which impact our positive long-term investment thesis. Another reason for share price weakness was the unexpected retirement of beloved CEO Tim Van Hauwermeiren, who will become the non-executive Chairman. We think that the new CEO Karen Massey (formerly COO) is highly capable and represents a continuation of the company’s strategy.

We reduced the position in argenx SE to manage risk after the position size had increased from multi-year share price appreciation, though we maintain a high level of conviction in the investment.”