Obama Stock Portfolio: 10 Year Returns

3. Eli Lilly And Co (NYSE:LLY)

Number of Hedge Fund Investors: 109

Trailing 10-Year Returns: 30.06%

Founded in 1876, Eli Lilly and Company (NYSE:LLY) is a distinguished American pharmaceutical firm headquartered in Indianapolis, Indiana. Named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and Civil War veteran, the company has established a global presence, operating in 18 additional countries.

Barclays recently reaffirmed its Overweight rating on Eli Lilly and Company (NYSE:LLY) with a consistent price target of $913.00. This positive outlook follows a generally favorable review of Eli Lilly’s Alzheimer’s drug, donanemab, by the Advisory Committee (AdCom) panel, with attention now turning to the regulatory agency’s decision on the drug’s finite dosing strategy. While donanemab’s impact on LLY’s shares might be limited, as it is considered secondary to the company’s broader GLP-1 narrative, its approval could significantly influence the Alzheimer’s drug market, especially in relation to competitor Biogen’s medication, Leqembi.

Eli Lilly and Company (NYSE:LLY) shares are currently trading at a P/E ratio of 131.56, significantly above its 5-year average of 48.69. This elevated valuation is supported by the potential of Eli Lilly and Company (NYSE:LLY)’s weight loss drugs, such as Mounjaro and Zepbound, and the strong market demand for weight loss medications.

As of the end of March 2024, Insider Monkey’s database revealed that 109 out of 919 hedge funds had invested in Eli Lilly and Company (NYSE:LLY). Among these investors, Ken Fisher’s Fisher Asset Management emerged as the company’s leading shareholder, with a stake valued at $3.65 billion.

Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its first quarter 2024 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.”