Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter, the strategy returned -1.9% net of fees compared to the S&P 500’s 4.3% return. According to a three-factor performance attribution model, allocation and interaction effects led to the portfolio’s underperformance which was partially offset by selection effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Patient Capital Opportunity Equity Strategy highlighted stocks like Biogen Inc. (NASDAQ:BIIB), in the second quarter 2024 investor letter. Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. The one-month return of Biogen Inc. (NASDAQ:BIIB) was -0.08%, and its shares lost 15.44% of their value over the last 52 weeks. On July 23, 2024, Biogen Inc. (NASDAQ:BIIB) stock closed at $224.29 per share with a market capitalization of $32.656 billion.
Patient Capital Opportunity Equity Strategy stated the following regarding Biogen Inc. (NASDAQ:BIIB) in its Q2 2024 investor letter:
“Biogen Inc. (NASDAQ:BIIB) is another name that we believe is underappreciated. As a global biopharmaceutical business, the company is most well known for their products in multiple sclerosis, spinal muscular atrophy, and most recently Alzheimer’s disease. The new CEO, Christopher Viehbacher, is working to improve the company’s pipeline, most recently with their acquisition of Human Immunology Biosciences Inc. in May. Chris has a strong track record of successful M&A and we expect him to continue that tradition. More importantly, we think the market is currently giving the company no credit for success in their Alzheimer’s indication. While the uptake in Leqembi, their Alzheimer’s product, has been slow, we still see strong long-term potential for a patient population that is dramatically underserved. We find the risk/reward extremely attractive.”
A patient receiving physical therapy for a neurological disease.
Biogen Inc. (NASDAQ:BIIB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Biogen Inc. (NASDAQ:BIIB) at the end of the first quarter which was 51 in the previous quarter. The total revenue of Biogen Inc. (NASDAQ:BIIB) in the first quarter was $2.3 billion, representing a decrease of 7% in actual and constant currency. While we acknowledge the potential of Biogen Inc. (NASDAQ:BIIB) 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 Biogen Inc. (NASDAQ:BIIB) and shared ClearBridge Value Equity Strategy’s views on the company. Patient Capital Opportunity Equity Strategy initiated a position in Biogen Inc. (NASDAQ:BIIB) during Q1 2024. 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.
