Does Roivant (ROIV) Offer an Attractive Risk Reward Opportunity?

Tourlite Capital Management, an investment management firm, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Tourlite Fund, LP returned 0.4% for Q4 2024 and 14.2% for 2024. Since inception, the fund has annualized returns of 10.2% compared to 11.6% and 4.2% for the S&P 500 and the Russell 2000 Indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Tourlite Capital Management emphasized stocks such as Roivant Sciences Ltd. (NASDAQ:ROIV). Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company. The one-month return of Roivant Sciences Ltd. (NASDAQ:ROIV) was -2.48%, and its shares lost 4.93% of their value over the last 52 weeks. On March 6, 2025, Roivant Sciences Ltd. (NASDAQ:ROIV) stock closed at $10.60 per share with a market capitalization of $7.564 billion.

Tourlite Capital Management stated the following regarding Roivant Sciences Ltd. (NASDAQ:ROIV) in its Q4 2024 investor letter:

“We continue to believe Roivant Sciences Ltd. (NASDAQ:ROIV) offers an attractive risk reward and multiple ways to win. Excluding Roivant’s cash balance and Immunovant (IMVT) stake, the remainder of Roivant (ROIV stub) is valued at less than $2 per share. We believe Roivant’s stake in Arbutus and its exposure to the LNP litigation could alone be worth up to $4. In addition to ROIV, we remain shareholders in Arbutus.”

Is Roivant Sciences Ltd. (ROIV) Firm End 2024 Stronger With Impressive Gains?

A research scientist in a lab coat examining a sample of blood for sickle cell diseases.

Roivant Sciences Ltd. (NASDAQ:ROIV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Roivant Sciences Ltd. (NASDAQ:ROIV) at the end of the fourth quarter compared to 50 in the third quarter. While we acknowledge the potential of Roivant Sciences Ltd. (NASDAQ:ROIV) 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 Roivant Sciences Ltd. (NASDAQ:ROIV) and shared the list of cash-rich mid cap stocks to buy. In its Q3 2024 investor letter, Tourlite Capital Management highlighted Roivant Sciences Ltd.’s (NASDAQ:ROIV) positive developments. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.