In This Article:
ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Due to stock-specific weakness in a handful of holdings and a lack of exposure to several of the top-performing, higher-beta growth companies, the strategy underperformed its benchmark the Russell Mid Cap Growth Index in a momentum-driven market. Following Trump’s victory, small-cap, value, and cyclical shares saw a spike in price; however, growth stocks regained their lead by the end of the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Growth Strategy highlighted stocks like Biogen Inc. (NASDAQ:BIIB), in the fourth quarter 2024 investor letter. Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. The one-month return of Biogen Inc. (NASDAQ:BIIB) was -2.95%, and its shares lost 39.02% of their value over the last 52 weeks. On January 8, 2025, Biogen Inc. (NASDAQ:BIIB) stock closed at $150.75 per share with a market capitalization of $21.967 billion.
ClearBridge Growth Strategy stated the following regarding Biogen Inc. (NASDAQ:BIIB) in its Q4 2024 investor letter:
"We exited Biogen Inc. (NASDAQ:BIIB), a biotechnology company developing treatments for Alzheimer’s disease and other neurological disorders. While Biogen has delivered significant advancements for the biotech sector and has been held in the portfolio for several decades, the company’s growth trajectory is now more uncertain due to a slower-than-expected launch of Alzheimer’s treatment Leqembi, with no clear catalyst for an upward inflection, which leaves the drug’s peak sales potential questionable. Additionally, patent expirations and pricing pressures in key therapeutic areas such as multiple sclerosis have further weighed on earnings potential. Biogen may also need acquisitions to stimulate growth, potentially increasing execution risk and degrading its balance sheet."
A patient receiving physical therapy for a neurological disease.
Biogen Inc. (NASDAQ:BIIB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Biogen Inc. (NASDAQ:BIIB) at the end of the third quarter which was 46 in the previous quarter. While we acknowledge the potential of Biogen Inc. (NASDAQ:BIIB) 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.