Long Leaf Partners Fund’s Comment on Regeneron (REGN)

Core Insights - Longleaf Partners Fund reported a return of -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The fund focuses on investments in real assets and brands that generate growing free cash flow (FCF) per share, with an expectation that the FCF multiple could rise from ~10x to the mid-teens [1] Fund Performance - The fund's performance in Q3 2025 was disappointing, with a return of -0.33% compared to significant gains in broader indices [1] - The firm is implementing strategies to improve margins and increase share repurchases to enhance future performance [1] Regeneron Pharmaceuticals, Inc. Insights - Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) had a one-month return of 3.19% but experienced a significant decline of 37.64% over the past 52 weeks, closing at $575.69 per share with a market cap of $61.316 billion on October 23, 2025 [2] - The fund views Regeneron as having regained value per share and highlights its strong pipeline candidates and share repurchase activity [3] Market Position and Revenue - Regeneron Pharmaceuticals, Inc. was held by 73 hedge fund portfolios at the end of Q2 2025, an increase from 66 in the previous quarter [4] - The company reported total revenues of $3.7 billion in Q2 2025, reflecting a 4% growth year-over-year [4]