Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Small Company Fund returned 8.48% in the quarter, roughly in line with the Russell 2000 Growth index’s 8.41% return. The Fund has only gained 1.80% year to date, far behind the benchmark’s return of 13.22%, despite this quarter representing a minor move toward a fundamentally driven market. In addition, check the fund’s top five holdings to know its best picks in 2024.
The Brown Capital Management Small Company Fund highlighted stocks like Repligen Corporation (NASDAQ:RGEN) in the third quarter 2024 investor letter. Repligen Corporation (NASDAQ:RGEN) develops and distributes bioprocessing technologies and systems. The one-month return of Repligen Corporation (NASDAQ:RGEN) was 2.78%, and its shares lost 19.80% of their value over the last 52 weeks. On December 6, 2024, Repligen Corporation (NASDAQ:RGEN) stock closed at $146.54 per share with a market capitalization of $8.21 billion.
The Brown Capital Management Small Company Fund stated the following regarding Repligen Corporation (NASDAQ:RGEN) in its Q3 2024 investor letter:
“Repligen Corporation (NASDAQ:RGEN) is a life-sciences company that develops and manufactures products used throughout the complex process of making biological drugs, helping its customers increase efficiency and reduce costs. Toward the end of 2023, a year in which Repligen’s revenue declined 20%, there were some positive signs suggesting that demand might recover in 2024, but that recovery has not yet occurred, causing the stock price to decline 17% year to date through Sept. 30. Repligen revenue declined 17% during the first quarter of 2024 and fell 3% in the second quarter. Management pointed to continued weakness among CDMO (Contract Development and Manufacturing Organization) customers as the pace of R&D investments among smaller biotechs has slowed due to the tough funding environment from high interest rates. Analyzing the results of companies we own in this space, 10X Genomics (TXG), Cryoport (CYRX) and Bio-Techne (TECH), as well as peers like Thermo Fisher Scientific, Danaher and large CDMOs like Catalent and Lonza, it is evident that the slowdown in spending is an industry-wide phenomenon and not specific to Repligen.”
A technician in a lab inspecting an ELISA test kit for use in biopharmaceutical diagnostics.
Repligen Corporation (NASDAQ:RGEN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Repligen Corporation (NASDAQ:RGEN) at the end of the third quarter which was 37 in the previous quarter. In the third quarter, Repligen Corporation (NASDAQ:RGEN) reported $155 million in revenues, up 10% from Q3 2023. While we acknowledge the potential of Repligen Corporation (NASDAQ:RGEN) 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 Repligen Corporation (NASDAQ:RGEN) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.