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 Biogen Inc. (NASDAQ:BIIB). Biogen Inc. (NASDAQ:BIIB) is a biotechnology company specializing in developing therapies for neurological and neurodegenerative diseases. On March 04, 2026, Biogen Inc. (NASDAQ:BIIB) stock closed at $189.94 per share. One-month return of Biogen Inc. (NASDAQ:BIIB) was 2.47%, and its shares gained 28.89% over the past 52 weeks. Biogen Inc. (NASDAQ:BIIB) has a market capitalization of $27.88 billion.
Patient Opportunity Equity Strategy stated the following regarding Biogen Inc. (NASDAQ:BIIB) in its fourth quarter 2025 investor letter:
“This quarter we entered three new positions and exited one position. We increased our exposure to Biogen Inc. (NASDAQ:BIIB) in the quarter by buying long-dated call options expiring in 2028 with a strike price of $150. We continue to think Biogen is an attractive asset over the long term. The company has a number of late-stage pipeline assets that should reach the market over the next few years, at the same time that its Alzheimer’s franchise should continue to ramp as blood-based biomarkers and subcutaneous injections broaden the potential treatable universe. Longer term, we believe Biogen is positioning itself to own multiple stages of the Alzheimer’s disease lifecycle, similar to its historical approach in multiple sclerosis. With a cleaned-up cost structure, a more focused research effort, and a growing late-stage pipeline, we continue to view the risk/reward as attractive.”
Biogen Inc. (NASDAQ:BIIB) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Biogen Inc. (NASDAQ:BIIB) at the end of the fourth quarter, up from 59 in the previous quarter. While we acknowledge the risk and potential of Biogen Inc. (NASDAQ:BIIB) 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 Biogen Inc. (NASDAQ:BIIB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Biogen Inc. (NASDAQ:BIIB) and shared a list of best medical research stocks to buy according to hedge funds. 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.
