Accelerated Momentum Lifted Philip Morris (PM) in Q1

Broyhill Asset Management, an investment advisor, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 2.8% net of all fees and expenses in the first quarter, surpassing a -1.2% return for the MSCI All Country World Index. Volatility was the dominant theme in the first quarter, particularly among a few US technology companies that have come to influence the performance of passive indices. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Philip Morris International Inc. (NYSE:PM). Philip Morris International Inc. (NYSE:PM) tobacco company working to deliver a smoke-free future. The one-month return of Philip Morris International Inc. (NYSE:PM) was 4.10%, and its shares have appreciated by 75.45% over the past 52 weeks. On May 29, 2025, Philip Morris International Inc. (NYSE:PM) closed at $177.87 per share, with a market capitalization of $276.86 billion.

Broyhill Asset Management stated the following regarding Philip Morris International Inc. (NYSE:PM) in its Q1 2025 investor letter:

“Shares of Philip Morris International Inc. (NYSE:PM) tacked on an additional 33% in the first quarter after returning 34% last year. The company reported a 53% increase in US ZYN shipments as production capacity increased, fueling a 250 basis point improvement in operating margins and illustrating the positive mix shift to smoke-free products. While we have reduced the position as shares have eliminated their discount to the market over the past year, PM remains our largest investment, with momentum accelerating in its business. Simply put, it’s difficult to find another company better positioned for the current economic environment.”

Why Philip Morris International Inc (PM) is Surging in 2025

A man exhaling smoke from a cigarette indicating the use of tobacco products.

Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the first quarter, which was 102 in the previous quarter. Philip Morris International Inc. (NYSE:PM) delivered double-digit organic net revenue growth of plus 10.2% in Q1 2025, reaching $9.3 billion in total. While we acknowledge the potential of Philip Morris International Inc. (NYSE:PM) 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 undervalued AI stock set for massive gains.

In another article, we covered Philip Morris International Inc. (NYSE:PM) and shared Artisan Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 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.