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

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Soumya Eswaran

Mon, May 4, 2026 astatine 7:14 AM CDT 3 min read

Baron Capital, an concern absorption company, released its Q1 2026 capitalist missive for the “Baron Health Care Fund”. A transcript of the missive is disposable to download here. Baron Health Care Fund (the Fund) declined 6.97% (Institutional Shares) successful the quarter, compared to the 4.88% diminution for the Russell 3000 Health Care Index (the Benchmark) and the 3.96% diminution for the Russell 3000 Index (the Index). The Fund appreciated 9.39% connected an annualized ground since its inception, compared to the 8.97% summation for the Benchmark and the 13.26% summation for the Index. The disappointing banal enactment drove the Fund’s underperformance successful the quarter. Despite caller challenges, the Fund believes the semipermanent outlook for wellness attraction remains affirmative owed to factors including an aging population, rising chronic illness rates, advances successful biotechnology, and accrued wellness attraction spending. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

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

Baron Health Care Fund stated the pursuing regarding Argenx SE (NASDAQ:ARGX) successful its Q1 2026 capitalist letter:

"Higher vulnerability to lagging beingness sciences tools & services stocks and anemic banal enactment successful biotechnology and wellness attraction services besides contributed to the comparative shortfall. Within biotechnology, a fistful of holdings weighed connected performance, with the main detractor being Argenx SE (NASDAQ:ARGX), a institution champion known for processing Vyvgart, the starring FcRn inhibitor for the attraction of autoimmune conditions. The banal sold disconnected owed to operating disbursal guidance being supra capitalist expectations and income guidance for a seasonally anemic Q1, neither of which interaction our affirmative semipermanent concern thesis. Another crushed for stock terms weakness was the unexpected status of beloved CEO Tim Van Hauwermeiren, who volition go the non-executive Chairman. We deliberation that the caller CEO Karen Massey (formerly COO) is highly susceptible and represents a continuation of the company's strategy.

We reduced the presumption successful argenx SE to negociate hazard aft the presumption size had accrued from multi-year stock terms appreciation, though we support a precocious level of condemnation successful the investment."

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