Mayar Capital’s Largest Holding: Johnson & Johnson (JNJ) - InvestingChannel

Mayar Capital’s Largest Holding: Johnson & Johnson (JNJ)

Mayar Capital, an asset management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees, while the MSCI World Index declined by 5.2% in the same period. Since its inception in May 2011, Mayar Fund has seen a 198.7% increase versus a 180.9% increase for the MSCI. That corresponds to a 10.6% annualized rate of return for the Mayar Fund, compared to 10.1% for the MSCI. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Mayar Capital mentioned Johnson & Johnson (NYSE:JNJ) and explained its insights for the company. Founded in 1886, Johnson & Johnson (NYSE:JNJ) is a New Brunswick, New Jersey-based pharmaceutical industry company with a $440.5 billion market capitalization. Johnson & Johnson (NYSE:JNJ) delivered a -2.05% return since the beginning of the year, while its 12-month returns are down by -6.63%. The stock closed at $167.57 per share on August 16, 2022.

Here is what Mayar Capital has to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…” (Click here to see the full text)

drug factory, researcher, Copyright: kadmy / 123RF Stock Photo

Our calculations show that Johnson & Johnson (NYSE:JNJ) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Johnson & Johnson (NYSE:JNJ) was in 83 hedge fund portfolios at the end of the second quarter of 2022, compared to 83 funds in the previous quarter. Johnson & Johnson (NYSE:JNJ) delivered a -6.29% return in the past 3 months.

In August 2022, we published an article that includes Johnson & Johnson (NYSE:JNJ) in 10 Best Stocks to Buy According to Thomas Bailard’s Hedge Fund. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.

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