Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista U.S. Quality Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The stock market rose in 2024 and carried on through the fourth quarter, as investors welcomed the growing optimism following the presidential election. For the year, the S&P 500® Index (“S&P 500®”) increased by 25.0%, its second straight consecutive annual gain above 20%. In the fourth quarter, the strategy returned -0.18% net-of-fees compared to +2.74% and +2.41% returns for the Russell 1000® Index and the S&P 500® Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Mar Vista U.S. Quality Strategy emphasized stocks such as Danaher Corporation (NYSE:DHR). Danaher Corporation (NYSE:DHR) manufactures and distributes a diverse portfolio of products and services for professional, medical, industrial, and commercial applications. The one-month return of Danaher Corporation (NYSE:DHR) was -16.11%, and its shares lost 16.46% of their value over the last 52 weeks. On February 21, 2025, Danaher Corporation (NYSE:DHR) stock closed at $210.23 per share with a market capitalization of $150.253 billion.
Mar Vista U.S. Quality Strategy stated the following regarding Danaher Corporation (NYSE:DHR) in its Q4 2024 investor letter:
“Healthcare stocks in general, and Life Science tool businesses more specifically, ended 2024 on a downbeat as investor sentiment is still cautious on the market’s post-Covid recovery. Hopes for an above average industry growth rebound in 2025 were muted by managements’ more cautious guidance. Investor concerns over the Trump administration’s healthcare leadership and policies further dampened optimism for a strong 2025. Tariff impacts, NIH funding and Biotech/pharma spending top the list of investor concerns. We believe Mettler-Toledo’s and Danaher Corporation’s (NYSE:DHR) secular growth opportunities stay intact. Both businesses compete in key, defensible segments of the industry’s value chain and have strong pricing power and margin expansion opportunities. Long-term secular drivers for scientific research and commercialization of biologic therapeutics and molecular diagnostic should drive above-average growth for both businesses.”
A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens.
Danaher Corporation (NYSE:DHR) is in 27th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the fourth quarter compared to 98 in the third quarter. Danaher Corporation (NYSE:DHR) reported an annual sale of $23.9 billion with a 1.5% decrease in core revenue. In the fourth quarter the company generated $6.5 billion in sales, showing a 1% core revenue growth. While we acknowledge the potential of Danaher Corporation (NYSE:DHR) 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 Danaher Corporation (NYSE:DHR) and shared the list of best scientific instruments stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.