Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equity market continued its rally in the third quarter. The Fund was up 4.3%, 8.7% and 4.6% in EUR, USD and AUD terms, in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conventum – Alluvium Global Fund highlighted stocks like McKesson Corporation (NYSE:MCK), in the third quarter 2024 investor letter. McKesson Corporation (NYSE:MCK) offers healthcare services through U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International segments. The one-month return of McKesson Corporation (NYSE:MCK) was 12.50%, and its shares gained 35.04% of their value over the last 52 weeks. On December 3, 2024, McKesson Corporation (NYSE:MCK) stock closed at $617.95 per share with a market capitalization of $78.44 billion.
Conventum – Alluvium Global Fund stated the following regarding McKesson Corporation (NYSE:MCK) in its Q3 2024 investor letter:
“McKesson Corporation (NYSE:MCK), the drug distributor, was down 15.2%. It reported first quarter results, beating analysts estimates, raising guidance, and increasing its dividend and share repurchase authorization. What’s not to like? Well, the results were masked a little by gains on investments more than offsetting some operational headwinds. Nonetheless those issues were largely timing related and where they aren’t, they are being addressed. We have not changed our long term outlook, but the share price fell 11.3% on announcement. Then, less than a month later, it fell 9.9% apparently because management provided second quarter estimates below expectations (despite maintaining full year guidance). It also announced the USD 2.5b acquisition of a controlling stake in Core Ventures (providing significant growth to its Oncology Platform) and the divestment of a couple of Canadian businesses. The changes to our valuation were immaterial, we bought a little more, and we are comfortable with the Fund’s current weighting of 6.2%.”
A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy.
McKesson Corporation (NYSE:MCK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the third quarter which was 70 in the previous quarter. In the fiscal second quarter of 2025, McKesson Corporation (NYSE:MCK) delivered $93.7 billion in revenues, up 21%, driven by significant growth in the US pharmaceutical division. While we acknowledge the potential of McKesson Corporation (NYSE:MCK) 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 McKesson Corporation (NYSE:MCK) and shared the list of best pharma stocks to buy right. In addition, please check out our hedge fund investor letters Q3 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.