Yale University Stock Portfolio: Top 5 Picks

4. Progyny, Inc. (NASDAQ:PGNY)

Number of Hedge Fund Holders: 39    

Progyny, Inc. (NASDAQ:PGNY) is a benefits management firm that focuses on fertility and family building benefits. Berenberg recently initiated coverage of the stock with a Buy rating and a price target of $81, implying upside potential of close to 46%. Analyst Iris Zhilin noted that the firm had already established a reputation in the health industry and was set to benefit from the growth of the fertility market in the US because of delayed parenthoods and the increase in demand for egg freezing. 

According to the latest data, Yale University owned more than 26,000 shares in Progyny, Inc. (NASDAQ:PGNY) at the end of the second quarter of 2021 worth $1.57 million, representing 0.56% of the portfolio. 

At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $290 million in Progyny, Inc. (NASDAQ:PGNY), up from 26 in the previous quarter worth $221 million.

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Progyny, Inc. (NASDAQ:PGNY) was one of them. Here is what the fund said:

“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We also added Progyny, a leading provider of fertility benefit management services to self-insured employers. This is an increasingly important, albeit relatively underpenetrated benefit for employers, particularly those seeking to improve access and support diversity, inclusion and equity initiatives.

Progyny realizes substantially better outcomes for patients (higher pregnancy rates, lower miscarriage rates and lower twins rates), which leads to significant cost savings for payers along with the obvious better outcomes for patients and families.

Progyny’s mission is to improve the employee experience around fertility issues in order to aid clients in employee recruitment and retention. The company offers a rare win-win-win for employers, employees and health systems, with clear savings and quality improvements. With the company still relatively underpenetrated in its total addressable market and with logical adjacencies (labs/diagnostics, return-to-work support) and demographic tailwinds (families getting started later leads to higher infertility risk), Progyny should sustain its elevated top-line growth profile.”