Here’s What Drove Baron Health Care Fund to Add AbbVie (ABBV) to Its Portfolio

Core Insights - Baron Health Care Fund reported a 5.39% increase in Q3 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% [1] - The fund's performance was impacted by stock selection and negative effects from active sub-industry allocations and cash holdings during a rising market [1] Group 1: AbbVie Inc. Overview - AbbVie Inc. is a research-based biopharmaceutical company with a market capitalization of $385.18 billion and a stock price of $218.04 as of October 31, 2025 [2] - The one-month return for AbbVie was -5.28%, while it gained 8.76% over the last 52 weeks [2] Group 2: Growth Drivers and Financial Performance - AbbVie has key growth drivers including Skyrizi and Rinvoq, with no major patent expirations until the mid-2030s, following a recent settlement that delayed generic competition for Rinvoq to 2037 [3] - The company is expected to achieve high single-digit top-line growth and low double-digit bottom-line growth for many years [3] Group 3: Market Position and Hedge Fund Interest - AbbVie was held by 89 hedge fund portfolios at the end of Q2 2025, an increase from 86 in the previous quarter [4] - AbbVie reported total net revenues of $15.4 billion in Q2 2025, exceeding expectations by over $400 million [4]