TCW Funds, an investment management company, released its “TCW Relative Value Large Cap Fund” Q3 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, U.S. and European indices reached all-time highs, fueled by optimism surrounding central bank easing, decreasing inflation, rising hopes for a soft landing, and stimulus measures in China. In the third quarter, all sectors of the Russell 1000 Value posted gains, except for energy. The portfolio’s top ten average-weighted names returned 12.9%, on average, better than the portfolio and benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
TCW Relative Value Large Cap Fund highlighted stocks like Gilead Sciences, Inc. (NASDAQ:GILD), in the third quarter 2024 investor letter. Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company. The one-month return of Gilead Sciences, Inc. (NASDAQ:GILD) was 0.91%, and its shares gained 8.83% of their value over the last 52 weeks. On January 3, 2025, Gilead Sciences, Inc. (NASDAQ:GILD) stock closed at $91.41 per share with a market capitalization of $113.922 billion.
TCW Relative Value Large Cap Fund stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q3 2024 investor letter:
“Gilead Sciences, Inc. (NASDAQ:GILD), headquartered in Foster City, CA, is one of the world’s largest and best-managed research-based biopharmaceutical companies that discovers, develops, and commercializes innovative medicines for treatment of serious and highly infectious diseases such as HIV/AIDS, hepatitis C, hepatitis B, cancer, and a host of cardiovascular/ metabolic diseases. At elimination, GILD had a market capitalization of $86 billion and met all five valuation factors. Catalysts included new management and new markets/new products. Early in 2019, Daniel O’Day took over as the CEO and he aggressively moved to refocus the company’s effort to expand and streamline its pipeline of new products both internally developed in addition to new products from external partnerships and selective M&A. Most recently, Gilead acquired Immunomedics with a strong products and pipeline in oncology targeting cancerous tumors. GILD refocused strategy is paying off with consistent strong growth of its core franchise drugs and rapidly expanding pipeline of new products. The company operates in many communities around the world and is committed to have a positive, enriching, and sustainable impact. Gilead’s goal is to minimize the effect on climate change and increase renewable energy. In achieving this, it is committed to reducing its greenhouse gas (GHG) emission with a target goal of reduction by 25% by the end of 2025, compared to its 2016 emissions. During the Covid pandemic, Gilead had the only fully FDA approved therapeutic, Remdesivir, which was deployed worldwide. While the Gilead pipeline has promise, the HIV portfolio of drugs has generated the most robust results. It was determined to exit the position as the pipeline timeline has been pushed out. Gilead’s price action has been relatively flat since inception with its dividend (currently 4.5%) boosting total returns.”
A physician and a patient having a discussion in a hospital about biopharmaceutical medicines.
Gilead Sciences, Inc. (NASDAQ:GILD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Gilead Sciences, Inc. (NASDAQ:GILD) at the end of the third quarter which was 62 in the previous quarter. Gilead Sciences, Inc. (NASDAQ:GILD) reported sales of 7.5 billion in the third quarter 2024, up 7% year-over-year. While we acknowledge the potential of Gilead Sciences, Inc. (NASDAQ:GILD) 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 Gilead Sciences, Inc. (NASDAQ:GILD) and shared the list of best dividend stocks of 2024. In addition, please check out our hedge fund investor letters Q3 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.