Silver Ring Value Partners: Jazz Pharmaceuticals (JAZZ) Is a “High Uncertainty With Low Risk” Investment - InvestingChannel

Silver Ring Value Partners: Jazz Pharmaceuticals (JAZZ) Is a “High Uncertainty With Low Risk” Investment

Silver Ring Value Partners, an investment management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -9.2% (net) in the last 12 months compared to a 35.2% return for the Russell 3000 Index and a 33.1% return for the MSCI World Index during the same period. The portfolio is more undervalued and better balanced than a year ago, and the firm believes it will benefit them working toward the long-term objective of safely compounding capital. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Silver Ring Value Partners highlighted stocks like Jazz Pharmaceuticals plc (NASDAQ:JAZZ) in the third quarter 2023 investor letter. Headquartered in Dublin, Ireland, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company. The one-month return of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was 3.97%, and its shares lost 0.57% of their value over the last 52 weeks. On November 18, 2024, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) stock closed at $117.59 per share with a market capitalization of $7.354 billion.

Silver Ring Value Partners stated the following regarding Jazz Pharmaceuticals plc (NASDAQ:JAZZ) in its Q3 2024 investor letter:

“Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a specialty pharma company that fits the investment pattern of “high uncertainty with low risk.” While it has several important products on the market, its biggest is the sleep franchise. Within it the first-generation drug, Xyrem, has gone off patent, and the company is transitioning patients to the improved version, Xywav. The latter is a low-sodium version which has lower cardiac risks but similar efficacy.

While the adoption of Xywav has been good, there is uncertainty around competition and the sustainability of that transition. For example, a competitor has a competitive drug to Xyrem which is taken once a night as opposed to Xyrem’s twice a night regimen, which is more convenient for patients. However, that drug is still the high-sodium version and therefore carries similar cardiovascular risks…” (Click here to read the full text)

A biopharmaceutical scientist in their lab, studying a newly-diagnosed therapy-related acute myeloid leukemia. .

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Jazz Pharmaceuticals plc (NASDAQ:JAZZ) at the end of the second quarter which was 38 in the previous quarter. While we acknowledge the potential of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) 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 Jazz Pharmaceuticals plc (NASDAQ:JAZZ) and shared the list of best immunotherapy stocks to buy. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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