Should You Be Tempted To ‘Sell’ IDEXX Laboratories (IDXX) Stock

Polen Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter of 2020, the Polen U.S. SMID Company Growth Composite Portfolio returned 7.11% gross of fees, while the Russell 2500 Growth Index was up 9.37%. You should check out Polen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Polen Capital highlighted a few stocks and IDEXX Laboratories Inc (NASDAQ:IDXX) is one of them. IDEXX Laboratories Inc (NASDAQ:IDXX) is a veterinary services company. Year-to-date, IDEXX Laboratories Inc (NASDAQ:IDXX) stock gained 72% and on November 12th it had a closing price of $449.22. Here is what Polen Capital said:

“We exited our position in IDEXX Laboratories. We believe this company remains fundamentally strong and has had solid business performance during the pandemic. However, the company reached $31B market cap, more than 3x the weighted average market cap of the Portfolio. Given our commitment to stay in the SMID category, it was time to recycle the assets into smaller market cap companies. IDEXX has been a strong performer since the Portfolio’s inception, having outperformed the benchmark and contributing to attractive returns.”

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In Q2 2020, the number of bullish hedge fund positions on IDEXX Laboratories Inc (NASDAQ:IDXX) stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in IDEXX Laboratories’ growth potential. Our calculations showed that IDEXX Laboratories Inc (NASDAQ:IDXX) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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