Should You Sell Your Holdings in Align Technology (ALGN)?

Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The initial market optimism after the Presidential election gave way to fear and uncertainty in the first quarter of 2025. Against this backdrop, the fund returned -12.38% gross, and -12.65% net of fees compared to the Russell 2500 Growth Index return of -10.80%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Polen US SMID Company Growth Strategy highlighted stocks such as Align Technology, Inc. (NASDAQ:ALGN). Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services. The one-month return of Align Technology, Inc. (NASDAQ:ALGN) was -4.86%, and its shares lost 29.68% of their value over the last 52 weeks. On June 6, 2025, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $180.62 per share, with a market capitalization of $13.033 billion.

Polen US SMID Company Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its Q1 2025 investor letter:

“We also chose to exit our position in Align Technology, Inc. (NASDAQ:ALGN) due to disappointing fundamental performance and increased tariff risks, given Align’s significant manufacturing presence in Mexico. We have exited our position in Booz Allen Hamilton, a management consulting and IT services provider, as uncertainties surrounding DOGE made continued investment less attractive.”

Align Technology, Inc. (ALGN): Among Small-Cap Healthcare Stocks Hedge Funds is Buying

An orthodontist examining a patient’s teeth with a intraoral scanner, demonstrating the precision of the company’s technology.

Align Technology, Inc. (NASDAQ:ALGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Align Technology, Inc. (NASDAQ:ALGN) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the potential of Align Technology, Inc. (NASDAQ:ALGN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Align Technology, Inc. (NASDAQ:ALGN) and shared the list of small-cap healthcare stocks hedge funds are buying. Conestoga Capital Advisors also sold its investment in Align Technology, Inc. (NASDAQ:ALGN) during Q1 2025. In addition, please check out our hedge fund investor letters Q1 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.