Core Viewpoint - Baron Health Care Fund's performance in Q3 2025 was 5.39%, slightly outperforming the Russell 3000 Health Care Index at 5.05%, but lagging behind the broader Russell 3000 Index at 8.18% [1] Fund Performance - The fund's performance was primarily impacted by solid stock selection, which was offset by negative effects from active sub-industry allocations and cash holdings during a rising market [1] - The fund's top five holdings were highlighted as key picks for 2025 [1] Company Focus: Masimo Corporation - Masimo Corporation (NASDAQ:MASI) is a medical technology company known for its non-invasive patient monitoring technologies, particularly pulse oximeters [2][3] - In the last month, Masimo's stock returned -3.52%, and over the past 52 weeks, it lost 4.35% of its value, closing at $144.96 with a market capitalization of $7.87 billion on November 3, 2025 [2] - The fund noted that poor stock selection in health care equipment, including Masimo, was a significant drag on performance, contributing to a 160 basis point decline [3] Performance Concerns - Masimo's recent quarterly results raised concerns about a steep decline in incremental contract value, although the company maintains a strong backlog of unrecognized contract revenue [3] - The company aims to more than double its earnings per share within five years through stable compounding in its core business and disciplined spending [3] Hedge Fund Interest - Masimo Corporation was held by 36 hedge fund portfolios at the end of Q2 2025, a slight decrease from 37 in the previous quarter [4] - While Masimo is recognized for its potential, the company is not considered among the most popular stocks among hedge funds, with certain AI stocks viewed as having greater upside potential and less downside risk [4]