Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the Fund was up 1.7% in USD terms and 1.1% in AUD terms but down 2.4% in EUR terms due to a strengthening currency. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Conventum – Alluvium Global Fund highlighted stocks such as McKesson Corporation (NYSE:MCK). McKesson Corporation (NYSE:MCK) offers healthcare services through U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International segments. The one-month return of McKesson Corporation (NYSE:MCK) was 1.31%, and its shares gained 20.76% of their value over the last 52 weeks. On June 17, 2025, McKesson Corporation (NYSE:MCK) stock closed at $724.38 per share with a market capitalization of $90.63 billion.
Conventum – Alluvium Global Fund stated the following regarding McKesson Corporation (NYSE:MCK) in its Q1 2025 investor letter:
McKesson Corporation (NYSE:MCK), the drug distributor was up 18.2%. It released a decent set of results which included management narrowing and upgrading (again) its guidance, and its acquisition of a controlling interest in PRISM Vision (with 1,890 providers across 91 offices). Thus, Ophthalmology will sit aside Oncology as a complementary business. It also sold two Canadian operations to rationalise its portfolio. Management reiterated its long term EPS growth expectations of 12-14%. This was not a full year result, and we did not make any material changes to our valuation. The business looks fully priced trading at a 25% premium to our valuation – but that valuation is predicated upon more conservative earnings than management’s current guidance. And we also consider that, for the six years we have held this business, we have consistently been updating and increasing our valuation. Valuation is a blend of art and science and given our valuation has proven to be conservative, like other positions in the portfolio we will maintain the investment when we judge it to be appropriate. McKesson represents 6.9% of the Fund.
A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy.
McKesson Corporation (NYSE:MCK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the first quarter, which was 78 in the previous quarter. McKesson Corporation (NYSE:MCK) reported consolidated net revenue of $90.8 billion in the fiscal fourth quarter of 2025, up 19% year-over-year. While we acknowledge the potential of McKesson Corporation (NYSE:MCK) 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 McKesson Corporation (NYSE:MCK) and shared the list of best healthcare stocks to buy. 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 MCK 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.
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Disclosure: None. This article is originally published at Insider Monkey.
