Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned -7.85 % in the quarter significantly underperforming -3.21% return for the Russell Midcap Growth Index. The strategy focuses on EGCs with strong revenue growth, competitive advantages, and differentiated products that save time, and money or deliver significant value to consumers. In addition, check the fund’s top five holdings to know its best picks in 2024.
Brown Capital Management Mid Company Fund highlighted stocks like Insulet Corporation (NASDAQ:PODD), in the second quarter 2024 investor letter. Insulet Corporation (NASDAQ:PODD) develops and manufactures insulin delivery systems. The one-month return of Insulet Corporation (NASDAQ:PODD) was 17.87%, and its shares gained 24.91% of their value over the last 52 weeks. On September 6, 2024, Insulet Corporation (NASDAQ:PODD) stock closed at $214.75 per share with a market capitalization of $15.169 billion.
Brown Capital Management Mid Company Fund stated the following regarding Insulet Corporation (NASDAQ:PODD) in its Q2 2024 investor letter:
“Insulet Corporation (NASDAQ:PODD) is a medical-device company that produces the Omnipod Insulin Management System, the first commercial, tubeless, insulin-patch pump. Insulin-dependent diabetics historically relied on syringes or tubed insulin pumps to administer the medicine. The Omnipod offers a distinct form factor for insulin delivery: a sleek, disposable, multiday pod that attaches to the body. As technology advanced, these pumps were paired with continuous glucose monitoring (CGM) systems that automatically transmit glucose data wirelessly to the insulin pump. Pumps could then use this real-time information to dynamically adjust the insulin-infusion rate, mimicking the function of a healthy pancreas and dramatically improving a patient’s quality of life. After reeling late last year over concerns that GLP-1s, the popular weight-loss drugs, will curb diabetes and reduce insulin-pump demand, Insulet’s shares have slowly rebounded as the company’s results have remained strong.
During the quarter, both sales and margins exceeded consensus estimates. Management also raised full-year guidance for both. Revenue jumped 23% in constant currency, led by much stronger international sales underpinned by the launch in Europe of Omnipod 5, the company’s latest model. Operating margin rose a whopping 740 basis points year over year on an adjusted basis, as strong volume growth and manufacturing efficiencies drove gross margins markedly higher. The specter of GLP-1s shrinking Insulet’s addressable market remains a long-term risk, but we believe it is a manageable one. The global pump market is large, with an estimated patient population of 11 million people, and growing 9% to 12% annually. Insulet is the market leader and growing twice as fast as the industry but boasts less than 500,000 total patients. We believe the company has a long runway and we are comfortable with our position.”
A pharmacy worker placing wireless handheld personal diabetes managers against the light.
Insulet Corporation (NASDAQ:PODD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Insulet Corporation (NASDAQ:PODD) at the end of the second quarter which was 40 in the previous quarter. Insulet Corporation’s (NASDAQ:PODD) revenue grew by 23% year 0ver year, in the second quarter, fueled by Omnipod growth of 26%. While we acknowledge the potential of Insulet Corporation (NASDAQ:PODD) 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 cheapest AI stock.
In another article, we discussed Insulet Corporation (NASDAQ:PODD) and shared the ClearBridge Select Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2024 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.
