Soumya Eswaran
3 min read
In This Article:
RS Investments, an investment management company, released its “RS Large Cap Value Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy underperformed its benchmark, the Russell 1000 Value Index (the “Index”), and returned 1.57% (net) versus a return of 2.14% for the Index. The strong performance from stock selection in Consumer Discretionary and Utilities aided relative performance in the quarter, while stock selection in Materials and Information Technology detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, RS Large Cap Value Strategy highlighted stocks such as AbbVie Inc. (NYSE:ABBV). AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company. The one-month return of AbbVie Inc. (NYSE:ABBV) was 1.20%, and its shares gained 15.34% of their value over the last 52 weeks. On May 22, 2025, AbbVie Inc. (NYSE:ABBV) stock closed at $182.54 per share with a market capitalization of $322.439 billion.
RS Large Cap Value Strategy stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q1 2025 investor letter:
"AbbVie Inc. (NYSE:ABBV) was a strong positive contributor to performance during the first quarter of 2025. The stock benefited from a confluence of company-specific and macro drivers, including robust fourth-quarter results reported in February and renewed investor interest in the pharmaceutical sector broadly. AbbVie’s fourth quarter earnings exceeded expectations on both revenue and EPS, driven by continued growth in its immunology and neuroscience franchises, alongside stabilizing trends in Humira sales post loss of patent exclusivity. Importantly, during the first quarter AbbVie announced a large licensing deal with Gubra (a Danish biotech company) which gives AbbVie co-development and co commercialization rights on their lead clinical-stage obesity drug. While still early in development, the asset provides optionality in one of the most attractive therapeutic areas in biopharma today and underscores management’s willingness to reposition the company for long-term growth beyond its core inflammation franchise. On the macro front, pharmaceutical stocks in general rebounded after several years of relative underperformance as investors sought exposure to defensive, high-margin business models trading at modest valuations relative to the broader market. We remain constructive on AbbVie and believe the company is well-positioned to deliver high-single-digit earnings growth through the end of the decade, supported by durable franchises, a promising pipeline, and a healthy balance sheet."
