Is it a Good Move to Trim Your Johnson & Johnson (JNJ) Stake?

Distillate Capital Partners LLC, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. Through the sharp sell-off in the first half of 2022, Distillate’s U.S. FSV strategy held up better than the overall market with a decline of 15.80% net of fees vs. a 19.96% decline for the S&P 500 Index. For the same period, Distillate’s Intl. FSV strategy performed roughly in line with the iShares MSCI ACWI ex-US ETF, posting a total return of -18.07% net of fees versus -18.00% for the benchmark. Meanwhile, Distillate’s U.S. SQV’s 2022 first half total return after fees of -17.22% was better than the total return for the iShares Russell 2000 ETF of -23.48% and the iShares Russell 2000 Value ETF’s total return of -17.43%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) and explained its insights for the company. Founded in 1886, Johnson & Johnson (NYSE:JNJ) is a New Brunswick, New Jersey-based pharmaceutical industry company with a $437.3 billion market capitalization. Johnson & Johnson (NYSE:JNJ) delivered a -2.75% return since the beginning of the year, while its 12-month returns are up by 1.43%. The stock closed at $166.36 per share on September 29, 2022.

Here is what Distillate Capital has to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

Copyright: moovstock / 123RF Stock Photo

Our calculations show that Johnson & Johnson (NYSE:JNJ) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Johnson & Johnson (NYSE:JNJ) was in 83 hedge fund portfolios at the end of the second quarter of 2022, compared to 83 funds in the previous quarter. Johnson & Johnson (NYSE:JNJ) delivered a -6.01% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Johnson & Johnson (NYSE:JNJ) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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