ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fed’s rate cut in September contributed to a shift from large-cap generative AI winners to a broader range of market leadership, particularly in small-cap stocks. However, the strategy underperformed its benchmark in the third quarter because weaknesses in the communication services and IT sectors outweighed the strong performances in health care and consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Strategy highlighted stocks like Lantheus Holdings, Inc. (NASDAQ:LNTH), in the third quarter 2024 investor letter. Lantheus Holdings, Inc. (NASDAQ:LNTH) is a company that manufactures diagnostic and therapeutic products used by healthcare providers to diagnose and treat heart, cancer, and other medical conditions. The one-month return of Lantheus Holdings, Inc. (NASDAQ:LNTH) was 3.12%, and its shares gained 48.76% of their value over the last 52 weeks. On January 6, 2025, Lantheus Holdings, Inc. (NASDAQ:LNTH) stock closed at $93.82 per share with a market capitalization of $6.523 billion.
ClearBridge Small Cap Strategy stated the following regarding Lantheus Holdings, Inc. (NASDAQ:LNTH) in its Q3 2024 investor letter:
“Stock selection in the health care sector was the greatest contributor to relative performance, with three of our top five individual contributors coming from the sector. Lantheus Holdings, Inc. (NASDAQ:LNTH), which makes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart disease, cancer and other diseases, rose sharply in the third quarter after the Centers for Medicare and Medicaid Services proposed changes to its reimbursement policies for radiopharmaceutical products like Lantheus’s Pylarify. This allows Pylarify to continue to receive temporary pass-through reimbursement through 2026, mitigating investor concerns that this reimbursement would cease at the end of this year.”
A medical professional performing a pulmonary function assessment on a patient.
Lantheus Holdings, Inc. (NASDAQ:LNTH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Lantheus Holdings, Inc. (NASDAQ:LNTH) at the end of the third quarter which was 34 in the previous quarter. Lantheus Holdings, Inc.’s (NASDAQ: LNTH) consolidated net revenue for the third quarter was approximately $378.7 million, representing an 18.4% increase year-over-year. While we acknowledge the potential of Lantheus Holdings, Inc. (NASDAQ:LNTH) 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 Lantheus Holdings, Inc. (NASDAQ:LNTH) and shared the list of most profitable pharmaceutical stocks. 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.