Aristotle Atlantic Partners' Core Equity Strategy outperformed the S&P 500 Index in Q4 2023, with Eli Lilly and Company emerging as a notable holding. The pharmaceutical company's focus on innovative treatments and potential for growth in various therapeutic areas contribute to its premium valuation.
Aristotle Atlantic Partners' Core Equity Strategy Outperforms S&P 500 Index
( Credit to: Finance )
Aristotle Atlantic Partners, LLC, an investment management company, recently released its investor letter for the fourth quarter of 2023, outlining the performance of its Core Equity Strategy. The strategy achieved a return of 12.95% gross of fees (12.84% net of fees), surpassing the performance of the S&P 500 Index, which recorded a total return of 11.69%. Both the selection of securities and allocation effects contributed to the strategy's outperformance in the quarter.
One notable holding mentioned in the letter is Eli Lilly and Company (NYSE:LLY), a pharmaceutical company headquartered in Indianapolis, Indiana. Eli Lilly and Company stock closed at $782.12 per share on March 1, 2024, reflecting a one-month return of 10.75%. Over the past 52 weeks, its shares have gained 145.21% in value, and the company currently boasts a market capitalization of $743.142 billion.
Eli Lilly and Company: A Leading Pharmaceutical Company with Promising Growth
According to Aristotle Atlantic Core Equity Strategy, Eli Lilly and Company is a leading pharmaceutical company primarily focused on developing medicines for diabetes, oncology, immunology, and neuroscience. Its top-selling drugs, Trulicity, Verzenio, and Taltz, contribute to over half of the company's revenue in the United States. Eli Lilly operates in a single business segment, which is human pharmaceutical products.
The company has a robust pipeline of treatments targeting metabolic disorders, oncology, immunology, and central nervous system disorders. Notably, Eli Lilly has two phase three assets, Orforglipron (an oral GLP-1) and retatrutide (a triple incretin agonist), which have the potential to build upon the success of Mounjaro. Mounjaro, an existing drug, holds promise for commercialization beyond its current applications in type 2 diabetes and obesity. Eli Lilly aims to explore its potential in areas such as heart disease, sleep apnea, fatty liver disease, and chronic kidney disease. The strategy believes that the company's premium valuation is justified by this substantial growth profile.
Eli Lilly and Company: Popularity Among Hedge Funds
In terms of popularity among hedge funds, Eli Lilly and Company ranks 22nd on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, 102 hedge fund portfolios held shares of Eli Lilly and Company, consistent with the previous quarter.
Conclusion
Aristotle Atlantic Partners' Core Equity Strategy delivered impressive results in the fourth quarter of 2023, outperforming the S&P 500 Index. Eli Lilly and Company emerged as a notable holding in the strategy's portfolio, driven by its focus on developing innovative pharmaceutical treatments and its potential for further growth in various therapeutic areas.