Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Sustainable Value Strategy highlighted stocks like Exelixis, Inc. (NASDAQ:EXEL), in the fourth quarter 2024 investor letter. Exelixis, Inc. (NASDAQ:EXEL) is an oncology company, specializes in the discovery, development, and commercialization of new medicines for difficult-to-treat cancers. The one-month return of Exelixis, Inc. (NASDAQ:EXEL) was 8.12%, and its shares gained 59.89% of their value over the last 52 weeks. On January 17, 2025, Exelixis, Inc. (NASDAQ:EXEL) stock closed at $36.20 per share with a market capitalization of $10.338 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Exelixis, Inc. (NASDAQ:EXEL) in its Q4 2024 investor letter:
“Exelixis, Inc. (NASDAQ:EXEL) is a commercial-stage oncology company focused on developing therapies for cancer; its blockbuster commercial asset, Cabozantinib, derived ~$2B in global revenues in 2023 and 2024. The company also has a compelling early-stage pipeline. EXEL is not in the business of me-too programs and trying to get FDA results that are just good enough; FDA approval is the starting line, not the finish line. EXEL manages its portfolio of current and prospective drug candidates to drive innovation to improve the standard of care for patients, having found that generating differentiated data that moves the standard of care is what drives value for patients and EXEL over the long-term. The stock trades at a below-the-market multiple and a 25% discount to its five-year average forward valuation.”
A doctor in a white coat discussing clinical trial results with a patient in an oncology practice.
Exelixis, Inc. (NASDAQ:EXEL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Exelixis, Inc. (NASDAQ:EXEL) at the end of the third quarter which was 32 in the previous quarter. In the third quarter, Exelixis, Inc. (NASDAQ:EXEL) reported total revenues of approximately $539.5 million. While we acknowledge the potential of Exelixis, Inc. (NASDAQ:EXEL) 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 Exelixis, Inc. (NASDAQ:EXEL) and shared the list of best performing biotech stocks in 2024. 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.