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 Focus Growth Composite Portfolio returned 10.15% gross of fees, while the Russell 1000 Growth Index was up 13.22% and the S&P 500 Index was up 8.93%. 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 Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of them. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is a biotechnology company. Year-to-date, Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) stock gained 51.2% and on November 11th it had a closing price of $567.73. Here is what Polen Capital said:
“Regeneron was our largest absolute detractor in the third quarter, although year to date, the shares have appreciated nearly 60%. Before the end of the third quarter, Regeneron released early data on its COVID-19 antibody cocktail therapy. Data showed a strong reduction in viral load for patients who had not yet produced their own antibodies and almost no adverse events in approximately 275 patients. Soon after Regeneron’s data was released, it was announced that the President received the same therapy early in his own COVID battle.
We have not included revenues from this drug in our expectations for Regeneron as we are unsure how big or how long any sales would last. That said, we believe the speed and accuracy of bringing this drug to market is a testament to Regeneron’s R & D prowess. In six months, this therapy went from idea to development to real patient treatment with strong efficacy data thus far.
We believe Regeneron’s proprietary VelocImmune technology is a key reason the company was able to bring such a targeted therapy to patients so quickly. Furthermore, Regeneron has developed effective therapies for a wide array of diseases, including age-related macular degeneration, atopic dermatitis, asthma, hypercholesteremia, lung cancer, Ebola, and now COVID19. Its proprietary technology has allowed the company to work on a variety of diseases that have a large unmet medical need and bring many of these candidates into the clinic faster than competitors.”
Nestor Rizhniak/Shutterstock.com
This isn’t the first time Polen Capital talked about Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) favorably either. The investment firm has been a long time Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) bull. In April 2020, we shared Polen Capital’s bullish Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) thesis in this article.
In Q2 2020, the number of bullish hedge fund positions on Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) stock increased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Regeneron’s growth potential. Our calculations showed that Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
