Janus Henderson Investors, an investment management company, released its “Forty Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. shares increased following positive news about corporate earnings. Economic growth has remained relatively stable despite challenges such as a government shutdown, policy headwinds, and slower-than-expected employment growth. Excitement around artificial intelligence (AI) drove strong returns early in the quarter. However, concerns about valuations in late October led to declines in AI stocks. The Fund returned 0.27% In the fourth quarter, compared to the Russell 1000® Growth Index, which returned 1.12%. Stock selection in the healthcare and consumer staples sectors contributed to the performance, while the information technology and consumer discretionary sectors detracted. The Fund is optimistic about the market environment in 2026, supported by ongoing steady economic growth. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted Eli Lilly and Company (NYSE:LLY) as one of its leading contributors. Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company headquartered in Indianapolis, Indiana, that develops, manufactures, and markets human pharmaceutical products. On March 26, 2026, Eli Lilly and Company (NYSE:LLY) stock closed at $897.00 per share. One-month return of Eli Lilly and Company (NYSE:LLY) was -14.73%, and its shares gained 9.06% over the past 52 weeks. Eli Lilly and Company (NYSE:LLY) has a market capitalization of $802.832 billion.
Janus Henderson Forty Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2025 investor letter:
“Relative performance benefited from several healthcare holdings, notably Eli Lilly and Company (NYSE:LLY). The global pharmaceuticals company reported strong third-quarter results, fueled by accelerating sales growth for its blockbuster glucagon-like peptide-1 (GLP-1) weight loss products, Mounjaro and Zepbound. The company has several pipeline drugs that are performing well in late-stage clinical trials. These include orforglipron, a once-daily oral GLP-1 medication, and retatrutide, which targets a higher degree of weight loss and could provide a strong compliment to the company’s other GLP-1 products. Eli Lilly reached an agreement with the U.S. government on pricing and access to GLP-1 drugs for Medicare and Medicaid users, which may further expand the market potential for its weight loss drugs.”
Eli Lilly and Company (NYSE:LLY) ranks 16th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 137 hedge fund portfolios held Eli Lilly and Company (NYSE:LLY) at the end of the fourth quarter, up from 114 in the previous quarter. Eli Lilly and Company (NYSE:LLY) achieved impressive results in 2025, with revenue increasing by 45% to $65.2 billion, and fourth-quarter revenue growing by 43%. While we acknowledge the risk and potential of Eli Lilly and Company (NYSE:LLY) 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 Eli Lilly and Company (NYSE:LLY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Eli Lilly and Company (NYSE:LLY) and shared RiverPark Large Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
