Tareno Health­care Funds Monthly Report, June 2026

Market review

In June, the health­care sector rose 5.0% and outper­formed global stock markets by 5.7%. This perfor­mance was largely driven by a rotation into the health­care sector as investors reduced their momentum-driven positions in the memory and semicon­ductor sectors. The health­care sector was also supported by a number of broker and industry confe­rences, as well as robust M&A activity. The most signi­fi­cant transac­tions included the acqui­si­tion of Bio-Techne by Merck KGaA (USD 11.3 billion), the acqui­si­tion of Apogee Thera­peu­tics by AbbVie (USD 10.9 billion), and the acqui­si­tion of Nuvalent by GSK (USD 10.6 billion). Other deals included Incytes’ planned acqui­si­tion of Vega (USD 2 billion) as well as transac­tions by Biogen, Johnson & Johnson, and Zymeworks, each valued at appro­xi­m­ately USD 1 billion. Roche also secured upfront rights to bexobrut­ideg (a BTK degrader) from Nurix Thera­peu­tics for USD 700 million. In the capital markets, Parabilis Medicines (USD 670 million) and Kardian (USD 400 million) had successful initial public offerings.

Biotech­no­logy stocks rose 8.6%, driven by large-cap compa­nies such as AbbVie, Vertex, and Amgen, as well as supportive regula­tory develo­p­ments, positive clinical data, and ongoing M&A activity. The rally was broad-based, with parti­cu­larly strong gains among SMID-cap compa­nies (XBI +15.9%). On the regula­tory front, the FDA appears to be taking a more flexible approach toward previously halted develo­p­ment programs. The recent consul­ta­tion with Regenxbio regar­ding a gene therapy for Hunter syndrome, as well as the clari­fi­ca­tion of regula­tory uncer­tain­ties surroun­ding uniQures’ Huntington’s disease candi­dates, suggest a greater willing­ness to re-evaluate programs under new leader­ship that had previously received Complete Response Letters. In addition, the sector benefited from a strong flow of clinical data across various indica­tions, inclu­ding autism spectrum disor­ders and major depres­sive disorder (MDD). Compa­nies focused on future depres­sion thera­pies performed strongly, supported by positive Phase III data on DT120 from Definium Thera­peu­tics. In oncology, signi­fi­cant progress was made in pancreatic cancer: a combi­na­tion therapy consi­sting of Tango Thera­peu­tics’ PRMT5 inhibitor and Revolu­tion Medicines’ RAS(ON) inhibi­tors achieved an objec­tive response rate of 92%.

Provi­ders & Services rose 8.0%, with broad-based gains across all subsec­tors. Managed Care (+9.4%) continued its positive momentum, supported by favorable broker comments. Services also performed strongly (+8.1%), driven by CVS and U.S. Labora­to­ries, while Drug Distri­bu­tors rebounded (+6.4%). Hospi­tals (+3.2%) got off to a weaker start to the month after Ardent Health pointed to lower volumes in Q2. However, remarks by HCA’s CFO at a confe­rence reassured investors: Under­lying demand remains solid, while the current pressure is prima­rily attri­bu­table to an unfavorable payer mix related to expiring HIX subsi­dies.

The pharmaceu­tical sector (4.9%) was driven by scien­tific confe­rences and a rotation into the sector. Large-cap stocks led the way, with signi­fi­cant price gains for J&J (+12.7%), Merck (+9.0%), and Eli Lilly (+8.5%). Toward the end of the month, however, momentum slowed as the U.S. Congress’s incre­a­sing scrutiny of clinical trials conducted in China weighed on the sector. Of parti­cular note is Bayer, whose stock rose 29.8% after a U.S. Supreme Court ruling blocked thousands of state-level lawsuits related to the Roundup herbicide.

Life Sciences Tools & Services rose 3.3%, buoyed by a strong rebound in the second half of the month. The drivers were optimi­stic state­ments at confe­rences regar­ding the industry outlook, positive news on cancer diagno­stics, and solid Q1 results from ICON. The acqui­si­tion of Bio-Techne by Merck KGaA provided additional momentum.

In the MedTech sector (-0.6%), the diver­gence among large-cap stocks continued. Medtronic, Abbott, Becton Dickinson, Edwards, and Stryker posted gains in the low to high single digits, while Intui­tive Surgical and Boston Scien­tific declined in the mid-single digits to low double digits. Additional insights came from broker confe­rences as well as from Medtronic itself: The company beat expec­ta­tions and reported that volumes remained stable overall through April—an important signal given ongoing concerns about capacity utilization in the MedTech sector. Since the results are expected to reflect trends through May, this conti­nues to point to stable volumes.

Review Tareno Sustainable Health­care Fund

Last month, we estab­lished a position in Neuro­crine and did not close any existing positions. In June, the fund generated a return of 4.0%, while the bench­mark index rose 5.0%.

The biggest positive attri­bu­tion drivers compared to the index were:

• Pfizer (+27 bps): Not invested
• Gilead (+24 bps): Not invested
• Vertex ( +16 basis points): Positive broker comments and a rotation into large-cap biopharma

The biggest negative attri­bu­tion drivers in relation to the index were:

• Abbvie ( -50 bps): Not invested
• J&J ( -37 bps): The stock rose 18.4%, while the position was under­weight relative to the index
• Dexcom ( -25 bps): Despite positive results from the CONNECT study and regula­tory progress on the Stelo biosensor, concerns about short-term volume growth, incre­a­sing compe­ti­tion, and general volati­lity in the medtech sector weighed on the stock.

Review Tareno Impact Health­care Fund

Last month, we estab­lished a position in Compass Pathways and did not close any existing positions. In June, the Tareno Impact Health­care Fund generated a return of 5.5%.

The biggest positive contri­bu­tions were:

• Humana ( +118 bps): Continued positive momentum, supported by upward revisions to price targets, confirmed forecasts, and a new Medicaid contract in the state of Illinois
• Natera ( +72 bps): The NCCN updated its guide­lines for bladder cancer and included Signa­tera for ctDNA-based MRD testing. Combined with the Japanese approval of Signa­tera for colorectal cancer and a positive broker initia­tion, this supported the stock price
• Guardant ( +68 basis points): Continued positive momentum from the previous month, supported by positive broker comments

The biggest negative contri­bu­tions were:

• Tandem ( -40 Bp): No specific news
• Ambu ( -37 basis points): Broker downgrade
• Dexcom ( -28 bps): Despite positive results from the CONNECT study and regula­tory progress on the Stelo biosensor, concerns about short-term volume growth, incre­a­sing compe­ti­tion, and general volati­lity in the medtech sector weighed on the stock.