Here’s Why The Cigna Group (CI) Declined in Q4

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market wrapped up the year positively, as the S&P 500 Index increased by 2.41% in the quarter. Aristotle Atlantic’s Core Equity strategy returned 4.11% gross of fees (4.00% net of fees) in the quarter outperforming the S&P 500 Index’s 2.41% total return. The relative outperformance was due to a mix of security selection and allocation effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Aristotle Atlantic Core Equity Strategy highlighted stocks like The Cigna Group (NYSE:CI) in its Q4 2024 investor letter and explained its insights for the company. The Cigna Group (NYSE:CI) is a US-based insurance company that offers insurance and related products and services. The one-month return of The Cigna Group (NYSE:CI) was 4.48%, and its shares lost 10.72% of their value over the last 52 weeks.  On February 3, 2024, The Cigna Group (NYSE:CI) stock closed at $292.46 per share with a market capitalization of $80.072 billion.

Aristotle Atlantic Core Equity Strategy stated the following regarding The Cigna Group (NYSE:CI) in its Q4 2024 investor letter:

“The Cigna Group (NYSE:CI) detracted from performance in the fourth quarter following the tragic shooting of the CEO of UnitedHealthcare and increased focus on insurance industry practices. A bipartisan bill was introduced that could force companies that own pharmacy benefit managers to divest their pharmacy operations, which would impact Cigna’s Evernorth unit.”

A successful independent agent or broker discussing the benefits of life and health insurance with a customer.

The Cigna Group (NYSE:CI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held The Cigna Group (NYSE:CI) at the end of the third quarter which was 66 in the previous quarter. The Cigna Group (NYSE:CI) reported full-year revenue growth of 27% to approximately $247 billion. While we acknowledge the potential of The Cigna Group (NYSE:CI) 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 The Cigna Group (NYSE:CI) and shared stock picks of billionaire Larry Robbins. 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.