Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Polen Capital is Bullish on Regeneron Pharmaceuticals (REGN) and MSCI (MSCI)

Polen Capital Management, LLC, an independently-owned global investment manager, recently published its first-quarter focus growth commentary – a copy of which can be downloaded here. During the first quarter of 2020, the Polen Focus Growth Composite Portfolio returned -13.03% gross of fees, while the Russell 1000 Growth and S&P 500 indices were down 14.10% and 19.60%, respectively.

In the said letter, Polen Capital highlighted a few stocks and Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of them. Regeneron Pharmaceuticals is a biotechnology company based in New York. Year-to-date, REGN stock gained 43.1% and on April 27th it had a closing price of $547.52. Its market cap is of $59.1 billion. Here is what Polen Capital said:

“Regeneron Pharmaceuticals appreciated 30% in a challenging quarter. In recent years, concerns over increased competition for Eylea, Regeneron’s most significant drug, have weighed on shares. Early in the quarter, however, a competitor warned that its alternative to Eylea could potentially cause serious side effects, pushing Regeneron stock higher. From our perspective, this news highlights the difficulty in bringing safe eye care drugs to market and potentially extends the period of little competition for Eylea. Shares also received a boost when the firm announced it had identified several potential antibodies that could become the first effective preventative therapy for COVID-19 and that one of its existing products, Kevzara, could potentially be used to treat already sick COVID-19 patients. Regeneron was a strong performer in the first quarter, partly due to potentially premature COVID-19 enthusiasm (although this news helps demonstrate the strength of Regeneron’s drug development platform). We will continue to weigh the strength of Regeneron’s existing product portfolio and its differentiated drug discovery platform against some of the future headwinds the company could face.”

In Q4 2019, the number of bullish hedge fund positions on REGN stock increased by about 6% from the previous quarter (see the chart here).

Polen Capital’s comments on MSCI

In the said letter, Polen Capital also highlighted MSCI Inc. (NYSE:MSCI) stock. MSCI is a finance company based in New York. Here is what Polen Capital said:

“MSCI also appreciated by double-digits in the first quarter. MSCI is mostly insulated from equity market gyrations because 90% of its revenue is recurring and subscription-based. Also, the company can flex its expense structure in periods of stress. We believe MSCI offers a level of stability similar to our software and services businesses, which have highly recurring revenue, strong customer lock-in, and very little client attrition even in tough times.”

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.