Here's Why Sands Capital Global Growth Fund Decided to Sell Repligen Corporation (RGEN)

Sands Capital, an investment management company, released its “Sands Capital Global Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities surged in the quarter, although leadership remains concentrated. In this environment, the strategy returned -2.0% compared to 7.6% for the MSCI ACWI. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Global Growth Fund highlighted stocks such as Repligen Corporation (NASDAQ:RGEN). Repligen Corporation (NASDAQ:RGEN) is a life science company that develops and distributes bioprocessing technologies and systems. The one-month return of Repligen Corporation (NASDAQ:RGEN) was 1.94%, and its shares gained 7.30% of their value over the last 52 weeks. On December 16, 2025, Repligen Corporation (NASDAQ:RGEN) stock closed at $158.09 per share, with a market capitalization of $8.899 billion.

Sands Capital Global Growth Fund stated the following regarding Repligen Corporation (NASDAQ:RGEN) in its third quarter 2025 investor letter:

"Repligen Corporation (NASDAQ:RGEN) is a leading supplier of bioprocessing tools for manufacturing biologic drugs. Our research indicates that Repligen has built a strong reputation in the bioprocessing supply chain by differentiating itself within a fragmented field of component providers. However, the business remains heavily tied to the health of its end markets, limiting its ability to “make its own weather”—an important consideration for the Global Growth portfolio. Since our initial investment in 2022, Repligen has faced prolonged end-market weakness, resulting in a 20 percent revenue decline and a 65 percent contraction in adjusted operating income through 2024. While 2025 has shown signs of recovery in revenue and order momentum, ongoing headline risk has amplified downside volatility. Unlike peers whose margins have normalized, Repligen’s profitability remains well below pre-COVID levels and may take several years to recover. We initially expected Repligen to offer a “classic growth” profile—with lower stock and business volatility that could provide ballast to the portfolio. That outcome has not materialized. Given this dynamic, along with the stock’s still-elevated valuation and small portfolio weight (under 1 percent), we used the market’s positive reaction to Repligen’s second-quarter 2025 earnings as an opportunity to reallocate the capital."

Repligen Corporation (NASDAQ:RGEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Repligen Corporation (NASDAQ:RGEN) at the end of the third quarter, which was 49 in the previous quarter. While we acknowledge the potential of Repligen Corporation (NASDAQ:RGEN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Repligen Corporation (NASDAQ:RGEN) and shared the list of top stock recommendations you can’t miss amid growing AI bubble fears. In addition, please check out our hedge fund investor letters Q3 2025 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.