Longleaf Partners Fund Increased its Holdings in Regeneron Pharmaceuticals (REGN) on a Dip

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.33% in the second quarter, compared to the S&P 500’s 10.94% return and the Russell 1000 Value’s 3.79% return. The firm’s stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. Since markets have recovered and portfolio holdings remain high-quality and discounted, the firm believes maintaining its current cautious stance, as reflected in the recent strong results during turbulent times, is prudent, despite not fully matching recent market highs. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biopharmaceutical company that discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. The one-month return of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was 10.01%, and its shares lost 46.04% of their value over the last 52 weeks. On July 23, 2025, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock closed at $572.39 per share, with a market capitalization of $61.798 billion.

Longleaf Partners Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its second quarter 2025 investor letter:

“Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) – Healthcare company Regeneron detracted in the quarter. While we have followed the company for a long time, Regeneron is a newer holding. The company has a net cash balance sheet and great owner-partners. Unlike most others in its industry, it has sworn off large M&A, and it recently began a share repurchase program. This quarter’s performance was disappointing to the market due to a significant focus on Eylea, a retinal disease medication which constitutes less than 20% of the company’s valuation. Later in the quarter, the company also had a negative clinical trial outcome for a potential new product. We took the opportunity to increase our position on the share price weakness when the stock price decline far outpaced the value per share impacts of these items.”

Why Regeneron Pharmaceuticals, Inc. (REGN) Crashed Last Week

A pharmacist in a lab coat carefully analyzing a vial of medicine for its quality.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of the first quarter, which was 68 in the previous quarter. While we acknowledge the risk and potential of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) 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 Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and shared the list of best extremely profitable stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.