We recently compiled a list of the Top 10 Stocks to Buy According to Lone Pine Capital. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against the other stocks.
Lone Pine Capital, established in 1997 by Stephen Mandel, is a leading hedge fund and investment advisory firm based in Greenwich, Connecticut. The firm also operates offices in major financial hubs, including London, New York City, and San Francisco. Over the years, Lone Pine Capital has built a strong reputation in the investment world, focusing on long-term growth strategies. The firm’s disciplined approach to stock selection and asset management has enabled it to maintain a significant presence in the hedge fund industry.
Stephen Mandel, the founder of the firm, has had an extensive career in finance even before launching Lone Pine Capital. He previously worked as a managing director at Tiger Management, gaining valuable experience in investment strategy. A graduate of Dartmouth College with a degree in government, Mandel later earned an MBA from Harvard University. His expertise and leadership led to his ranking in the highest-earning categories among Forbes’ top hedge fund managers multiple times between 2012 and 2018. Although Mandel stepped away from active investment management in 2019, he continues to serve as a managing director at the firm. As of Q4 2024, Lone Pine Capital managed nearly $13.5 billion in 13F securities spread across 30 companies, with its top 10 holdings accounting for 55.89% of its portfolio.
Lone Pine Capital’s investment philosophy is rooted in identifying transformative changes that can unlock or accelerate value. By leveraging institutional knowledge and deep expertise across sectors and global markets, the firm continuously reassesses its investment theses and uncovers new opportunities. It strategically times market entry by recognizing key turning points in economic and industry cycles, allowing it to capitalize on shifts before they become widely apparent. The firm also prioritizes long-term value creation, typically holding investments for two to three years, though it has held stocks of certain companies for decades. This disciplined approach aligns investment timelines with investor expectations, optimizing returns. Additionally, Lone Pine Capital remains highly responsive to innovation in various forms—whether through technological advancements, business model evolution, or leadership changes—adapting its strategies based on emerging data and shifting market dynamics.
Moreover, the hedge fund’s investment strategies are designed to achieve long-term capital appreciation through a disciplined and research-driven approach. For its long-only strategy, the firm focuses on high-conviction investments in companies with strong growth potential, maintaining a diversified portfolio primarily across North America and Europe while limiting exposure to emerging markets. Its long/short equity strategy follows a similar approach, combining concentrated long positions with a diversified selection of short investments to navigate market fluctuations effectively. Net exposure varies based on market conditions and available opportunities, ensuring flexibility in positioning. In private investments, the firm applies its extensive research capabilities to identify promising companies in sectors such as software, financial technology, healthcare, and consumer markets. By targeting capital-efficient businesses with significant public market potential, Lone Pine Capital seeks to maximize returns through selective, high-impact investments.
Our Methodology
The stocks discussed below were picked from Lone Pine Capital’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An array of pharmaceutical pills with the company’s logo on the bottle.
Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders as of Q4: 115
Lone Pine Capital’s Equity Stake: $604.37 Million
Founded in 1876, Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company headquartered in Indianapolis, Indiana, with a global presence in 18 countries. Its products are distributed in approximately 125 countries, reflecting its global reach. Alongside pioneering pharmaceutical advancements, the company emphasizes inclusive clinical trials and is committed to ensuring its medicines are both accessible and affordable for diverse populations. Eli Lilly and Company (NYSE:LLY) is a recent addition to Stephen Mandel’s portfolio, with the hedge fund acquiring shares for the first time in Q4 2024. Despite being a new holding, Lone Pine Capital invested significantly, purchasing 782,860 shares valued at over $604 million, making it the ninth most valuable position in the fund’s 13F holdings for the quarter ending in December 2024.
On February 6, 2025, Eli Lilly and Company (NYSE:LLY) reported its fourth-quarter 2024 financial results, highlighting strong revenue growth and a positive long-term outlook. CEO David A. Ricks emphasized the company’s success in advancing treatments for chronic diseases associated with obesity, expanding manufacturing capacity, and launching key products like Kisunla and Ebglyss, which are expected to drive sustained growth. The company’s fourth-quarter revenue surged 45% year-over-year to $13.53 billion, primarily fueled by increased sales volume of Mounjaro and Zepbound. Earnings per share (EPS) more than doubled, rising 114% to $5.32. Looking ahead, Lilly projects 2025 revenue between $58.0 billion and $61.0 billion, with EPS estimated in the range of $22.05 to $23.55, reinforcing confidence in its financial trajectory and continued innovation.
Insider Monkey’s database indicated that 115 hedge funds held stakes in Eli Lilly and Company (NYSE:LLY) at the end of Q4 2024, with a value of nearly $16.65 billion, as opposed to 106 funds in Q3. The company’s strong financial performance underscores its ability to capitalize on high-demand treatments while successfully launching new products. Additionally, the company’s appeal among institutional investors is evident, as hedge fund interest grew significantly in Q4 2024, demonstrating confidence in its long-term growth potential and innovative pharmaceutical pipeline.
Overall LLY ranks 9th on our list of the stocks to buy according to Lone Pine Capital. While we acknowledge the potential for LLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.