Is Roche Holding (RHHBY) A Worthy Stock Investment?

Ariel Investments, an investment management firm, published its “Ariel International & Ariel Global Fundthird-quarter 2021 investor letter – a copy of which can be downloaded here. Ariel International Fund returned -4.55% in the third quarter, trailing the MSCI EAFE Net Index which lost -0.45%, and the MSCI ACWI ex-US Net Index which returned -2.99%. Meanwhile, Ariel Global Fund Investor Class returned -3.92% in the third quarter and Ariel Global Fund–Institutional Class delivered a -3.82% return, compared to the MSCI ACWI Index which lost -1.05% for the same quarter. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel International & Ariel Global Fund, in its Q3 2021 investor letter, mentioned Roche Holding AG (NYSE: RHHBY) and discussed its stance on the firm. Roche Holding AG is a Basel, Switzerland-based multinational healthcare company with a $353.6 billion market capitalization. RHHBY delivered a 16.77% return since the beginning of the year, while its 12-month returns are up by 16.42%. The stock closed at $51.19 per share on December 17, 2021.

Here is what Ariel International & Ariel Global Fund has to say about Roche Holding AG  in its Q3 2021 investor letter:

“Global pharmaceutical and diagnostics leader, Roche Holding AG weighed on relative performance over the trailing one-year period. However, negative investor sentiment for pharmaceutical companies began to reverse this spring as COVID-19 vaccination rates climbed across developed markets. Weak prescription trends prior to June was an opportunity delayed, not denied, as people deferred routine doctor visits and physicals over the last year on fears of contracting COVID-19. In our view, a normalization in patient trends and prescription activity has driven returns across many of our pharmaceutical holdings in recent months. Our long-term thesis for Roche remains focused on its leadership in oncology treatments and strong prescription and insurance reimbursement profile. We believe the company is well positioned given its deep research and development capability and pipeline of new drugs coming to market over the next several years.”

Based on our calculations, Roche Holding AG (NYSE: RHHBY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. RHHBY was in 3 hedge fund portfolios at the end of the third quarter of 2021, compared to 3 funds in the previous quarter. Roche Holding AG (NYSE: RHHBY) delivered an 11.11% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on RHHBY in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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