Hotchkis & Wiley, an funding administration firm, launched its “Hotchkis & Wiley Mid-Cap Worth Fund” first quarter 2025 investor letter. A duplicate of the letter might be downloaded right here. The Hotchkis & Wiley Mid-Cap Worth Fund returned -5.63% within the first quarter, underperforming the Russell Midcap Worth Index’s -2.11% return. US mid-cap shares surged post-Presidential elections resulting from potential advantages of deregulation, decrease company taxes, and accelerated development. Nevertheless, Q1 2025 noticed a decline resulting from tariffs, excessive inflation, and weak macroeconomic elements, inflicting the Russell Midcap Index to say no by -3.4% and the Russell Midcap Worth Index by -2.1% vs. a decline of -7.1% for the Russell Midcap Development Index. For extra data on the fund’s finest picks in 2025, please verify its prime 5 holdings.
In its first-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Worth Fund highlighted shares resembling CVS Well being Company (NYSE:CVS). CVS Well being Company (NYSE:CVS) is a US-based well being options supplier. The one-month return of CVS Well being Company (NYSE:CVS) was -4.05%, and its shares gained 8.94% of their worth during the last 52 weeks. On Could 16, 2025, CVS Well being Company (NYSE:CVS) inventory closed at $62.53 per share with a market capitalization of $79.1 billion.
Hotchkis & Wiley Mid-Cap Worth Fund acknowledged the next concerning CVS Well being Company (NYSE:CVS) in its Q1 2025 investor letter:
“CVS Well being Company (NYSE:CVS) is a diversified healthcare firm working as a Pharmacy Advantages Supervisor (PBM), well being insurer, and retail shops and pharmacies. In January, CVS and different well being insurers with massive Medicare Benefit plans rose after the Facilities for Medicare & Medicaid Companies (CMS) printed better-than-expected reimbursement charges for 2026. CVS maintained that momentum in February by reporting anticipated fourth[1]quarter outcomes. It then reported first rate quarterly outcomes. The PBM phase and bodily shops had been according to expectations. Nevertheless, Aetna incurred losses throughout a number of strains of enterprise, pushed by Medicare Benefit and the Exchanges. Regardless of this, the losses within the medical health insurance phase had been much less extreme than anticipated, resulting in a constructive market response.”
A row of cabinets in a retail pharmacy, demonstrating the number of medicine and over-the-counter merchandise.
CVS Well being Company (NYSE:CVS) isn’t on our checklist of 30 Most In style Shares Amongst Hedge Funds. As per our database, 74 hedge fund portfolios held CVS Well being Company (NYSE:CVS) on the finish of the fourth quarter, in comparison with 63 within the third quarter. Within the first quarter of 2025, CVS Well being Company (NYSE:CVS) reported income of $94.59 billion, representing 7% year-over-year development. Whereas we acknowledge the potential of CVS Well being Company (NYSE:CVS) as an funding, our conviction lies within the perception that AI shares maintain better promise for delivering greater returns, and doing so inside a shorter timeframe. In case you are in search of an AI inventory that’s as promising as NVIDIA however that trades at lower than 5 occasions its earnings, take a look at our report concerning the undervalued AI inventory set for enormous features.