Core Insights - Baron Health Care Fund reported a 13.10% increase in the fourth quarter, outperforming the Russell 3000 Health Care Index's 11.92% and the Russell 3000 Index's 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks gained 14.56% and 17.15% respectively [1] - The Fund focuses on investing in businesses with sustainable competitive advantages and strong management, particularly in the healthcare sector, which is expected to show positive momentum through 2026 [1] Company Specifics - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted as a key stock in the Fund's fourth-quarter letter, with a one-month return of -12.36% and a 52-week loss of 5.09% [2] - As of February 5, 2026, Thermo Fisher's stock closed at $542.36, with a market capitalization of $203.769 billion [2] - The Fund has increased its position in Thermo Fisher, citing improving end markets for life sciences tools and stable biopharmaceutical R&D investment [3] - Management of Thermo Fisher anticipates organic revenue growth of 3% to 6% for 2026 and 2027, with potential for mid-to-high single-digit adjusted operating income growth [3] - Long-term growth drivers in the life sciences tools industry are expected to enable Thermo Fisher to achieve over 7% organic revenue growth beyond 2027 [3]