Renaissance Funding Administration, an funding administration firm, launched its Q1 2025 “Massive Cap Development Technique” investor letter. A replica of the letter could be downloaded right here. The S&P 500 skilled a 4.3% loss in Q1 resulting from uncertainty in know-how inventory valuations and US financial insurance policies. Nonetheless, seven sectors confirmed optimistic returns, with Vitality, Well being Care, and Utilities sectors exhibiting the strongest efficiency. The S&P 500 has not skilled a major correction since 2023, which could be anticipated to happen each couple of years. Nonetheless, there are nonetheless good funding alternatives in high-quality, moderately priced shares that haven’t matched concentrated market indices. The S&P 500 (-4.3%) and Russell 1000 Development Index (-10%) declined in Q1, with large-cap shares outperforming smaller-cap shares and Worth outperforming Development. For the quarter, the technique exceeded the Russell 1000 Development benchmark and lagged the S&P 500. For extra info on the fund’s finest picks in 2025, please verify its prime 5 holdings.
In its first-quarter 2025 investor letter, Renaissance Massive Cap Development Technique highlighted shares resembling AbbVie Inc. (NYSE:ABBV). AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical firm. The one-month return of AbbVie Inc. (NYSE:ABBV) was 0.79%, and its shares gained 14.87% of their worth over the past 52 weeks. On Could 21, 2025, AbbVie Inc. (NYSE:ABBV) inventory closed at $181.80 per share with a market capitalization of $321.132 billion.
Renaissance Massive Cap Development Technique said the next relating to AbbVie Inc. (NYSE:ABBV) in its Q1 2025 investor letter:
“We additionally added a brand new place within the Well being Care sector with AbbVie Inc. (NYSE:ABBV), a big biopharmaceutical firm centered on immunology, virology, and oncology. We’re drawn to AbbVie’s secure and extremely worthwhile enterprise mannequin which generates a excessive free cash-flow yield. AbbVie is coming off current subdued progress following the patent expiration of Humira, its largest drug. We anticipate progress from its pharmaceutical portfolio to start reaccelerating this 12 months, with a strong drug pipeline that may be additive to future progress.”
A pharmacist handing out a pharmaceutical drug to a affected person in a drug retailer or chemist.
AAbbVie Inc. (NYSE:ABBV) isn’t on our checklist of 30 Most Standard Shares Amongst Hedge Funds. As per our database, 85 hedge fund portfolios held AbbVie Inc. (NYSE:ABBV) on the finish of the fourth quarter, in comparison with 68 within the third quarter. Whereas we acknowledge the potential of AbbVie Inc. (NYSE:ABBV) as an funding, our conviction lies within the perception that AI shares maintain better promise for delivering larger returns, and doing so inside a shorter timeframe. If you’re on the lookout for an AI inventory that’s as promising as NVIDIA however that trades at lower than 5 occasions its earnings, try our report in regards to the undervalued AI inventory set for large positive factors.
