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 Royalty Pharma plc (NASDAQ:RPRX), in the second quarter 2024 investor letter. Royalty Pharma plc (NASDAQ:RPRX) is a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry. The one-month return of Royalty Pharma plc (NASDAQ:RPRX) was 7.19%, and its shares lost 8.74% of their value over the last 52 weeks. On July 23, 2024, Royalty Pharma plc (NASDAQ:RPRX) stock closed at $28.49 per share with a market capitalization of $17.021 billion.
Patient Capital Opportunity Equity Strategy stated the following regarding Royalty Pharma plc (NASDAQ:RPRX) in its Q2 2024 investor letter:
“While Royalty Pharma plc (NASDAQ:RPRX) is in the health care space, it is more like an investment firm that buys royalty assets in the healthcare space. The company has an extremely strong track record, running the business for over 20 years as a private fund before bringing it public. The market opportunity for external royalty funding has only grown as early-stage start-ups need funding and legacy players are looking to lower their debt levels. We think Royalty Pharma is perfectly positioned as the partner of choice. The company is disciplined, maintaining deal internal rate of returns (IRRs) in the low-teens despite the higher interest rate environment. We think as the company continues to deliver as a public company, the market will start paying attention.”
A scientist in a laboratory looking through a microscope, surrounded by petri dishes and beakers while researching new biopharmaceutical advances.
Royalty Pharma plc (NASDAQ:RPRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Royalty Pharma plc (NASDAQ:RPRX) was held by 37 hedge fund portfolios at the end of the first quarter, compared to 38 in the previous quarter, according to our database. Royalty Pharma plc (NASDAQ:RPRX) reported a 14% growth in Royalty Receipts in the first quarter (see the details here). While we acknowledge the potential of Royalty Pharma plc (NASDAQ:RPRX) 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 Royalty Pharma plc (NASDAQ:RPRX) and shared the list of best undervalued stocks to buy along with the expert opinion on the future growth prospects of the US economy. Patient Capital Management built up a position in Royalty Pharma plc (NASDAQ:RPRX) during the Q4 2023. 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.
