Soumya Eswaran
3 min read
In This Article:
Renaissance Investment Management, an investment management company, released its Q1 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The S&P 500 experienced a 4.3% loss in Q1 due to uncertainty in technology stock valuations and US economic policies. However, seven sectors showed positive returns, with Energy, Health Care, and Utilities sectors showing the strongest performance. The S&P 500 has not experienced a significant correction since 2023, which can be expected to occur every couple of years. However, there are still good investment opportunities in high-quality, reasonably priced stocks that have not matched concentrated market indices. The S&P 500 (-4.3%) and Russell 1000 Growth Index (-10%) declined in Q1, with large-cap stocks outperforming smaller-cap stocks and Value outperforming Growth. For the quarter, the strategy exceeded the Russell 1000 Growth benchmark and lagged the S&P 500. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as AbbVie Inc. (NYSE:ABBV). AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company. The one-month return of AbbVie Inc. (NYSE:ABBV) was 0.79%, and its shares gained 14.87% of their value over the last 52 weeks. On May 21, 2025, AbbVie Inc. (NYSE:ABBV) stock closed at $181.80 per share with a market capitalization of $321.132 billion.
Renaissance Large Cap Growth Strategy stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q1 2025 investor letter:
"We also added a new position in the Health Care sector with AbbVie Inc. (NYSE:ABBV), a large biopharmaceutical company focused on immunology, virology, and oncology. We are attracted to AbbVie’s stable and highly profitable business model which generates a high free cash-flow yield. AbbVie is coming off recent subdued growth following the patent expiration of Humira, its largest drug. We expect growth from its pharmaceutical portfolio to begin reaccelerating this year, with a solid drug pipeline that can be additive to future growth."
A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.
AAbbVie Inc. (NYSE:ABBV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held AbbVie Inc. (NYSE:ABBV) at the end of the fourth quarter, compared to 68 in the third quarter. While we acknowledge the potential of AbbVie Inc. (NYSE:ABBV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
