The one that hurt us the most cut 99 basis points off the Fund’s return. This stock was Regeneron Pharmaceuticals (REGN, Financial), which is a very interesting case. The stock actually went up during the year from our cost of $335 to $375 by the end of the year. What caused the loss was a sale of a lot of our shares at an average price of $315. The stock hit a low of $277 in September, and we became very discouraged about the prospects for the company. By the time it traded up to $315, we started selling, happy that it had gained quite bit from the low point of $277. As it turned out, we should have held on longer. Most of the time we have more patience with our stocks, and that’s why our long-term performance has been excellent. We’re taking the case of Regeneron as a cautionary tale and a reminder not to act too quickly. Regeneron is a biotechnology company that focuses on treatments for the eye, heart diseases, cancer and inflammation. Its blockbuster drug, Eyelea, faces pressure from a competing drug by Novartis, as well as a loss of patent exclusivity in 2023. The stock raced higher in the fourth quarter after a strong commercial launch and expanded indications for Dupixent, Regeneron’s drug for adolescent eczema.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) fourth-quarter 2019 commentary.