We recently compiled a list of the Top 10 Stocks to Buy According to Lee Munder Capital Group. In this article, we are going to take a look at where AbbVie Inc. (NYSE:ABBV) stands against the other stocks.
Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.
As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.
Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder’s portfolio.
Our Methodology
The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.
AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders as of Q3: 70
LMCG’s Equity Stake: $29.72 Million
AbbVie Inc. (NYSE:ABBV) is a leading pharmaceutical company based in North Chicago, Illinois, recognized as one of the largest biomedical firms by revenue. The company’s flagship product, Humira, is widely used to treat autoimmune disorders such as rheumatoid arthritis, Crohn’s disease, plaque psoriasis, and ulcerative colitis.
AbbVie Inc. (NYSE:ABBV) was established as an independent entity following Abbott Laboratories’ decision in 2011 to separate its pharmaceutical division into a standalone company. The spin-off was completed on January 1, 2013, and AbbVie began trading on the New York Stock Exchange under the ticker ABBV the following day. With a workforce of over 50,000 employees in more than 70 countries, AbbVie’s products address 75 medical conditions and are distributed in more than 175 countries. The company also collaborates with over 250 biotechnology firms, universities, nonprofits, and government organizations to drive medical innovation.
AbbVie Inc. (NYSE:ABBV) demonstrated strong financial performance for the quarter ended December 2024. The reported net revenue of $15.1 billion for the quarter, demonstrating a 5.6% increase year-over-year indicates solid business growth. However, the earnings per share (EPS) for the quarter were $2.16 against $2.79 for the same quarter in 2023, missing analyst estimates of $2.26 by 4.3%.
AbbVie’s top-selling drug, Humira, generated $187 billion in revenue for over two decades, but its patent expiration in January 2023 led to a 32% decline in Humira sales and a 7% drop in total company revenue due to similar medicines emerging in the market. Despite this, CEO Rob Michael stated at the 2025 JP Morgan Healthcare Conference that only 20% of patients have switched to the alternatives, with many transitioning to AbbVie’s newer immunology drugs, Skyrizi and Rinvoq. These treatments have already gained significant traction, capturing 50% of the market for inflammatory bowel disease (IBD) indications. With Skyrizi and Rinvoq contributing approximately $5 billion in growth, AbbVie Inc. (NYSE:ABBV)’s strategic shift towards innovative immunology treatments allows for the company’s strong long-term performance despite Humira’s decline.
LMCG owned 167,256 shares of the company as of Q4 2024, with a total value of $29.72 million, making it the stock with the 8th largest stake in Munder’s highly diversified portfolio. By the end of the third quarter, 68 funds out of the 900 funds tracked by Insider Monkey held stakes in AbbVie Inc. (NYSE:ABBV) worth over $2.58 billion, up from 67 funds by the end of Q2.
Polaris Global Equity Strategy stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q3 2024 investor letter:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
Overall ABBV ranks 8th on our list of Lee Munder Capital Group’s top stock picks. While we acknowledge the potential of ABBV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.