Does BillionToOne (BLLN) Have Another Major Growth Engine Beyond Prenatal Testing?

Does BillionToOne (BLLN) Have Another Major Growth Engine Beyond Prenatal Testing?

Tue, August 4, 2026 at 6:30 PM GMT+3 3 min read

• BLLN +2.16%

Baron Capital, an investment management company, released its Q2 2026 investor letter for the "Baron Health Care Fund". A copy of the letter is available to download here. The Fund gained 11.99% during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index and the 15.44% gain for the Russell 3000 Index. Since inception, the Fund appreciated 10.61% on an annualized basis, compared with 10.02% for the Benchmark and 14.83% for the Index. Strong stock selection in pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the Fund's outperformance, although limited exposure to managed care stocks reduced relative returns. The Fund remains positive on health care due to improving biotechnology funding, strong acquisition activity, recovering managed care margins, and growth from an aging population, chronic disease, medical innovation, and higher health care spending. In addition, please check the Fund's top five holdings to know the best picks in 2026.

In its second-quarter 2026 investor letter, Baron Health Care Fund highlighted BillionToOne, Inc. (NASDAQ:BLLN). BillionToOne, Inc. (NASDAQ:BLLN), a precision diagnostics company leveraging its technology to quantify biology to create molecular diagnostics, delivered strong performance during the quarter. On August 03, 2026, BillionToOne, Inc. (NASDAQ:BLLN) closed at $137.32 per share. The one-month return of BillionToOne, Inc. (NASDAQ:BLLN) was 16.33%, and YTD its shares gained 67.79% over the past 52 weeks. BillionToOne, Inc. (NASDAQ:BLLN) has a market capitalization of $6.32 billion.

Baron Health Care Fund stated the following regarding BillionToOne, Inc. (NASDAQ:BLLN) in its Q2 2026 investor letter:

"BillionToOne, Inc. (NASDAQ:BLLN) is a diagnostics company that is disrupting the market with more accurate prenatal and oncology genetic tests. Today, the vast majority of the company's revenue is generated by UNITY, a unique prenatal test that can screen for recessive single gene disorders from a maternal blood draw and identify fetal antigen status across both red blood cell and platelet antigens. Shares rose in the second quarter after the company reported robust first-quarter results (revenue up 84% year over year with 22% operating margins) and announced a meaningful expansion of commercial insurance coverage for its UNITY test and new UNITY Confirm product, which can replace amniocentesis or chorionic villus sampling to confirm a genetic diagnosis following a high-risk UNITY screening result. We continue to believe that BillionToOne's differentiated "quantitative counting template" technology enables more sensitive genetic testing. The company is making early headway in oncology with its SELECT therapy selection and RESPONSE therapy monitoring tests, which we think will be important future growth drivers."

BillionToOne, Inc. (NASDAQ:BLLN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held BillionToOne, Inc. (NASDAQ:BLLN) at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the potential of BillionToOne, Inc. (NASDAQ:BLLN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered BillionToOne, Inc. (NASDAQ:BLLN) and shared the list of stocks Jim Cramer discussed. Baron Health Care Fund added BillionToOne, Inc. (NASDAQ:BLLN) in the previous quarter, citing its disruptive QCT technology, strong UNITY prenatal test adoption, early oncology traction, and impressive financial discipline. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.