Eli Lilly & Co. (LLY) is Recovering from the Period of Volatility

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Macquarie Large Cap Growth Fund Institutional Class shares posted negative absolute returns; however, they surpassed the performance of the Fund’s benchmark, the Russell 1000® Growth Index. Despite market challenges, the firm’s investment style performed well, focusing on higher-quality businesses. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Eli Lilly and Company (NYSE:LLY). Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company, headquartered in Indianapolis, Indiana. The one-month return of Eli Lilly and Company (NYSE:LLY) was 8.16%, and its shares lost 13.67% of their value over the last 52 weeks.  On June 24, 2025, Eli Lilly and Company (NYSE:LLY) stock closed at $778.08 per share, with a market capitalization of $698.51 billion.

Macquarie Large Cap Growth Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q1 2025 investor letter:

“The largest individual detractors from performance relative to the benchmark were not owning Meta Platforms, not owning Eli Lilly and Company (NYSE:LLY), and our position in Electronic Arts Inc. Eli Lilly stock recovered following a period of volatility in the second half of 2024 as investors digested the possibility of competition, sustained compliance for patients taking its weight-loss therapy, and side effects, among other threats that the valuation hadn’t reflected. The stock recovered some value in 1Q25, but we continue to be on the sidelines.”

Was Jim Cramer Right About Eli Lilly and Company (LLY)?

Eli Lilly and Company (NYSE:LLY) is in 21st position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 119 hedge fund portfolios held Eli Lilly and Company (NYSE:LLY) at the end of the first quarter, which was 115 in the previous quarter. Eli Lilly and Company (NYSE:LLY) reported strong results in first quarter of 2025, with revenue increasing 45% compared to Q1 2024. While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) 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 Eli Lilly and Company (NYSE:LLY) and shared the list of best Fortune 500 stocks to buy according to billionaires. Baron Fifth Avenue Growth Fund initiated a position in Eli Lilly and Company (NYSE:LLY) during Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.