Tareno Health­care Funds monthly report May 2026

Market review

The health­care sector returned +1.9% in May, driven by the Q1 earnings season and supported by industry and scien­tific confe­rences. Follo­wing the close of the reporting season, the EPS trends seen in April continued with 76% of compa­nies beating expec­ta­tions and delive­ring higher positive surprises than in Q4. On the revenue side, 63% exceeded forecasts, with a level of positive variance similar to the previous quarter. M&A activity remained robust over the course of the month. A consor­tium led by CVC and GBL agreed to acquire Recordati for USD 12.5 billion, while Angelini acquired Catalyst for USD 4.1 billion. Large pharmaceu­tical compa­nies were also active: Eli Lilly agreed to acquire Curevo, LimmaTech and Vaccine Company for a total of up to USD 3.8 billion as part of a renewed offen­sive in the vaccine sector, while Bayer took over Perfuse (up to USD 2.5 billion) and Roche PathAI (up to USD 1.5 billion). UCB also planned to acquire Candid (up to USD 2.2 billion), and Esperion was taken private by Archimed for USD 1.1 billion. In Medtech, Boston Scien­tific invested USD 1.5 billion in MiRus, acqui­ring 34% and retur­ning to the TAVR market after the ACURATE platform was discon­tinued in 2025.

Life Sciences Tools & Services (+6.7%) recorded a volatile but strong May overall, with 12 out of 13 index compon­ents in positive terri­tory. A strong start was followed by a mid-month decline and a recovery by the end of the month. The initial rally was driven by strong results from Waters and Illumina, while the weakness in the middle of the month was due to a sector-wide rotation. The subse­quent recovery was supported by positive momentum such as Elliott’s invest­ment in Bio-Rad, a strong Q1 from Merck KGaA, a convin­cing Investor Day from Thermo Fisher and solid numbers from Agilent.

Pharma gained +4.1%, driven by heavy­weight Eli Lilly (+18.4%). The company reached a new all-time high follo­wing expanded insurance coverage for Zepbound and inclu­sion in preferred lists by CVS, inclu­ding additional coverage for the new weight loss pill Foundayo. Lilly also released updated long-term data on the triple‑G agonist, with weight loss of 28.3% at 80 weeks and 30.3% at 108 weeks. Abstract releases in the run-up to the ASCO confe­rence in Chicago (May 29-June 2) also influenced perfor­mance in the oncology sector.

Provi­ders & Services rose +0.3%, supported by continued strength in Managed Care (+5.0%) and solid Q1 results from CVS. Weakness in Drug Distri­bu­tors (-6.8%) follo­wing figures from Cencora and McKesson and in the Hospital sector (-12.9%) had an offset­ting effect. The latter was impacted by a weaker case mix and lower HIX volumes at HCA as well as concerns around Medicaid supple­mental directed payments (SDPs).

Biotech remained virtually unchanged (+0.1%) and was driven by solid M&A activity, ASCO abstracts and positive regula­tory news such as the depar­ture of Dr. Makary from the FDA.

MedTech (-3.7%) remained under pressure due to subdued senti­ment and capital rotation. Hearing aids were a bright spot, with the three main suppliers delive­ring returns of 17–24%, supported by strong results and impro­ving market condi­tions. Funda­mental trends remain intact, supported by demogra­phics, intact demand, stable prices and strong innova­tion momentum in cardio­logy, diabetes and robotic surgery.

Review Tareno Sustainable Health­care Fund

Last month, we added to one position in Alnylam and did not close any existing positions. In May, the fund achieved a return of 2.7%, while the bench­mark index rose 1.9%.

The biggest positive attri­bu­tion drivers compared to the index were:

• Dexcom (+31 bps): Positive momentum after strong long-term growth outlook at Investor Day; additional entry of Elliott Invest­ment Manage­ment
• Zoetis (+23 bp): Not invested
• J&J (+18 bp): Share fell by 9.8%, under­weight compared to the index

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

• Eli Lilly (-42 bp): Share up 18.4%, under­weight relative to the index
• Cencora (-28 bp): Weaker than expected results driven by a weaker US Health­care Solutions segment; later recovery thanks to adjusted EPS guidance driven by share buybacks
• Boston Scien­tific (-21 bp): The CEO declared just a few weeks after the Q1 figures that WATCHMAN heart implants, viewed in isola­tion, were not growing after all, raising doubts about the visibi­lity of the trends. The confirmed annual outlook could not compen­sate for the negative investor senti­ment.

Review Tareno Impact Health­care Fund

Last month, we did not add any new positions and did not close any existing ones. In May, the Tareno Impact Health­care Fund achieved a return of 9.2%.

The biggest positive contri­bu­tions were:

• Guardant (+156 bps): Beat-and-raise quarter and earlier-than-expected FDA approval for the expanded Guardant360 test; also inclu­sion of Guardant Shield in new scree­ning guide­lines
• Agilon (+146 bps): Share price up 230% in May thanks to strong Q1 figures and analyst upgrade
• Humana (+120 bps): Positive momentum after strong Q1 results and support from CVS results

The biggest negative contri­bu­tions were:

• Tandem (-39 bp): Share price decline despite solid figures, as investors see 2026 as a transi­tion year, charac­te­rized by two changes: PAYGO in the US and GODIRECT inter­na­tio­nally. However, the share recovered over the course of the month and had recovered most of its losses by June 1
• ResMed (-34 bps): Better-than-expected results, but weaker US device sales and GLP‑1 concerns weighed on senti­ment
• BioNTech (- 25 bp): Weaker Q1 sales due to decli­ning COVID-19 vaccine sales