Baker Brothers Portfolio Q2 2025 Update: Quarterly Analysis

Baker Brothers' Q2 2025 portfolio update shows changes in their stock holdings. The article analyzes the 13F Form filings to provide insights into the company's investment strategy and performance. It highlights the addition of new stocks and the reduction of existing holdings, providing a comprehensive overview of Baker Brothers' portfolio.

Baker Brothers, a prominent biotech investment firm, has released its latest quarterly 13F portfolio update, providing insights into its investment strategy and performance. The firm's portfolio value increased from $9.36 billion to $10.31 billion, with a significant concentration in a few large stakes. This article analyzes the changes in stock holdings, highlighting additions and reductions, to offer a comprehensive overview of Baker Brothers' Q2 2025 portfolio.

Key Changes in Q2 2025

Additions and Increases:

1. Summit Therapeutics (SMMT): Baker Brothers added a 3.44% stake in Summit Therapeutics during Q2 2024, which saw a 38% increase this quarter at prices between $16 and $37. The stock currently trades at $18.94.

2. Madrigal Pharmaceuticals (MDGL): The 5.80% MDGL stake saw a 30% increase in Q1 2020, followed by a similar increase in Q4 2023. The stock is now at $426, and there was a marginal increase this quarter.

3. Revolution Medicines (RVMD): Baker Brothers built a 3.34% stake in Revolution Medicines during the two quarters through Q1 2024, which saw an 18% increase this quarter at prices between $29 and $44. The stock currently trades at $46.20.

4. Kymera Therapeutics (KYMR): The 2.82% KYMR stake was built during H1 2023, followed by a 26% increase in Q4 2023 and an 11% increase this quarter. The stock currently trades at $47.28.

5. Alkermes plc (ALKS): ALKS is a 1.78% stake purchased during Q2 2024, which saw a 7% increase last quarter and a 43% increase this quarter. The stock is now at $26.52.

6. Edgewise Therapeutics (EWTX): EWTX is a 0.93% stake that saw an 88% increase during Q1 2024 and a 20% increase this quarter. The stock is now at $13.70.

Reductions:

1. Insmed Incorporated (INSM): The 7.53% INSM stake was primarily built during Q2 2024, but it saw a 40% reduction in the next quarter and a significant 85% reduction this quarter. The stock is now at $143.

2. argenx SE (ARGX): ARGX saw a 10% increase in Q1 2021, followed by a 75% reduction in Q3 2022 and a 45% selling during Q3 2023. Q2 2024 saw another 25% reduction, followed by a 30% selling last quarter and a 50% reduction this quarter. The stock currently trades at $757, and the stake is now very small at 0.20% of the portfolio.

Stake Increases and Decreases

Stake Increases:

1. Incyte Corporation (INCY): The 1.67M share stake in INCY has seen significant increases over the years, with the latest marginal increase this quarter. The stock currently trades at $83.14 and is now the second-largest stake at ~21% of the portfolio.

2. ACADIA Pharmaceuticals (ACAD): The ~9% ACAD stake was established in the 2012-2013 timeframe and saw a ~40% increase in Q4 2018. The stock currently trades at $24.67.

3. BeOne Medicines (ONC): The ~21% of the portfolio stake in BGNE has been in the portfolio since their US listing in Q1 2016. The stock currently trades at $332.

Stake Decreases:

1. Insmed Incorporated (INSM): INSM saw a significant reduction in the portfolio, with the position sold down by ~85% this quarter.

2. argenx SE (ARGX): ARGX saw multiple reductions in the portfolio, with the latest 50% reduction this quarter.

Conclusion

Baker Brothers' Q2 2025 portfolio update reveals a strategic approach to investment, with a focus on a few large stakes and significant increases in certain positions. The firm's ability to manage portfolio concentration and maintain high conviction picks has been a key factor in its past performance. As the portfolio continues to evolve, investors and financial professionals should closely monitor these changes for potential insights into future market movements.

References

Tracking Baker Brothers Portfolio - Q2 2025 Update^[1] https://seekingalpha.com/article/4823126-tracking-baker-brothers-portfolio-q2-2025-update