AbbVie (ABBV) Fell as its Arthritis Drug Went Off Patent

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -0.11% (gross) and -0.31% (net) compared to 8.33% for the Russell 1000 Growth Index and 4.28% for the S&P 500 Index. Generative AI (GenAI) remains the dominant market narrative in the second quarter. The portfolio does not own NVIDIA or other Semiconductor companies that are presently benefitting from the demand for AI hardware. However, with the portfolio’s extensive investment in software and IT services, the firm anticipates that GenAI’s long-term economic gains will go to these industries. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Polen Focus Growth Strategy highlighted stocks like AbbVie Inc. (NYSE:ABBV) in its Q2 2024 investor letter. AbbVie Inc. (NYSE:ABBV) discovers, develops, manufactures, and sells pharmaceuticals. The one-month return of AbbVie Inc. (NYSE:ABBV) was -0.24%, and its shares gained 20.35% of their value over the last 52 weeks. On July 19, 2024, AbbVie Inc. (NYSE:ABBV) stock closed at $172.32 per share with a market capitalization of $304.295 billion.

Polen Focus Growth Strategy stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q2 2024 investor letter:

“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: Home Depot, Meta Platforms, and AbbVie Inc. (NYSE:ABBV). AbbVie fell on the back of results that failed to allay concerns around continuing biosimilar threats to its very large, blockbuster arthritis drug, Humira, which went off patent last year.”

A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.

AbbVie Inc. (NYSE:ABBV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held AbbVie Inc. (NYSE:ABBV) at the end of the first quarter which was 76 in the previous 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 cheapest AI stock.

In another article, we discussed AbbVie Inc. (NYSE:ABBV) and shared the list of largest companies in the US. In addition, please check out our hedge fund investor letters Q2 2024 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.