Fiduciary Management Inc. (FMI), an independent money management firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. Despite the macroeconomic headwinds, the global market continued to advance in the second quarter. The FMI Large Cap Strategy gained 5.7% (gross) / 5.6% (net) in the quarter compared to an 8.74% increase in the S&P 500 Index and a 4.08% gain in the iShares Russell 1000 Value ETF. The FMI Small Cap Strategy gained 6.0% (gross) / 5.8% (net) compared to a 5.21% gain in the Russell 2000 Index and a 3.18% increase in the Russell 2000 Value Index in the same period. The FMI All Cap Equity gained 4.3% (gross) / 4.2% (net) compared to 8.38% for the iShares Russell 3000 ETF and the FMI International Strategies gained 5.5% (gross) / 5.3% (net) on a currency-hedged basis and 5.2% (gross) / 5.0% (net) on a currency unhedged basis in the second quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
FMI highlighted stocks like Roche Holding AG (OTC:RHHBY) in the second quarter 2023 investor letter. Headquartered in Basel, Switzerland, Roche Holding AG (OTC:RHHBY) engages in the pharmaceuticals and diagnostics businesses. On July 13, 2023, Roche Holding AG (OTC:RHHBY) stock closed at $38.09 per share. One-month return of Roche Holding AG (OTC:RHHBY) was -0.33%, and its shares lost 8.46% of their value over the last 52 weeks. Roche Holding AG (OTC:RHHBY) has a market capitalization of $248.513 billion.
FMI made the following comment about Roche Holding AG (OTC:RHHBY) in its second quarter 2023 investor letter:
“Roche Holding AG (OTC:RHHBY) is the world’s largest biotechnology company and the global leader in in-vitro diagnostics. In an industry that struggles to earn its cost of capital, Roche is an outlier. Roche’s superior return profile has benefited from a superior R&D organization and family control, which we believe has allowed management to take a long-term view and avoid the large, value destructive acquisitions that have hurt peer returns. Despite the R&D organization’s long track record of success, there have been a few recent pipeline drug setbacks that have weighed on the stock and depressed the valuation. We view these as temporary setbacks which are common for an R&D organization that focuses on first-in-class or best-in-class drugs in areas of significant unmet need. Importantly, we forecast revenue growth through 2027 based solely on the existing drug portfolio and diagnostics business without any contribution from pipeline drugs. Any pipeline drug contribution would add to this underlying growth, and our research suggests there are a handful of meaningful opportunities. The market is underappreciating this durable revenue growth outlook. We feel that the current valuation is very attractive for this high-quality company.”
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Roche Holding AG (OTC:RHHBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held Roche Holding AG (OTC:RHHBY) at the end of first quarter which was 2 in the previous quarter.
We discussed Roche Holding AG (OTC:RHHBY) in another article and shared Harding Loevner International Equity ADR Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.
