Patient Capital Management, a value investing firm, released its “Patient Opportunity Equity Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Patient Opportunity Equity Strategy returned 5.99% net of fees, compared to its unmanaged benchmark, the S&P 500 Index, which returned 2.65%. Through a three-factor performance attribution model, the portfolio’s outperformance was attributed to allocation, selection, and interaction effects. The market ended a strong year with 17.9% returns, marking the seventh-best three-year period in market history. 2025 was a year of AI, extending the benefits to hardware, energy, and component suppliers across the ecosystem. Seven stocks accounted for over half of the S&P 500’s returns, posing difficulties for active managers. Nevertheless, the strategy performed well, outperforming the S&P 500 for the third consecutive year with a return of 26.1%. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Patient Opportunity Equity Strategy highlighted Illumina, Inc. (NASDAQ:ILMN). Illumina, Inc. (NASDAQ:ILMN) is a biotechnology company that focuses on sequencing- and array-based solutions for genetic and genomic analysis. On March 04, 2026, Illumina, Inc. (NASDAQ:ILMN) stock closed at $128.97 per share. One-month return of Illumina, Inc. (NASDAQ:ILMN) was -3.47%, and its shares gained 52.36% over the past 52 weeks. Illumina, Inc. (NASDAQ:ILMN) has a market capitalization of $19.72 billion.
Patient Opportunity Equity Strategy stated the following regarding Illumina, Inc. (NASDAQ:ILMN) in its fourth quarter 2025 investor letter:
“Illumina, Inc. (NASDAQ:ILMN) was a top contributor during the quarter following a stronger-than-expected third quarter earnings report. The company surprised to the upside with a meaningful beat and raise, supported by continued momentum in clinical consumables, which grew faster than expectations as the transition to the high-throughput NovaSeq X continues ramp. We believe that Illumina’s core sequencing business is returning to a more normalized growth and profitability profile following several years of disruption. As confidence improves around the durability of demand and margin recovery, we believe the market is beginning to better appreciate the earnings power of the company’s market-leading platform.”
Illumina, Inc. (NASDAQ:ILMN) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Illumina, Inc. (NASDAQ:ILMN) at the end of the fourth quarter, up from 45 in the previous quarter. Illumina, Inc. (NASDAQ:ILMN) reported revenue of $1.16 billion in Q4 2025, an increase of 5% year over year on a reported basis and 4% on a constant currency basis. While we acknowledge the risk and potential of Illumina, Inc. (NASDAQ:ILMN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Illumina, Inc. (NASDAQ:ILMN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Illumina, Inc. (NASDAQ:ILMN) and shared a list of top oncology stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 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.
