Aristotle Capital Management, LLC, an investment management company, released its “International Equity Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐7.90% gross of fees, compared to a ‐9.36% return for the MSCI EAFE Index and ‐9.91% return for the MSCI ACWI ex USA Index. Both security selection and sector allocation were responsible for the fund’s outperformance in the quarter relative to the MSCI EAFE Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Capital highlighted stocks like GSK plc (NYSE:GSK) in its Q3 2022 investor letter. Headquartered in Brentford, the United Kingdom, GSK plc (NYSE:GSK) is a UK-based pharmaceutical company. On November 29, 2022, GSK plc (NYSE:GSK) stock closed at $34.36 per share. One-month return of GSK plc (NYSE:GSK) was 3.74%, and its shares lost 18.41% of their value over the last 52 weeks. GSK plc (NYSE:GSK) has a market capitalization of $69.878 billion.
Aristotle Capital made the following comment about GSK plc (NYSE:GSK) in its Q3 2022 investor letter:
“GSK plc (NYSE:GSK), the U.K.‐headquartered pharmaceutical company, was the largest detractor. GSK completed the demerger of its consumer health business in July, creating the independent, publicly traded company Haleon. As discussed below, we made Haleon a full position following the spinoff. We believe the separation unlocks value and allows remaining GSK to benefit from greater focus on biopharmaceuticals and vaccines. After managing the completed spinoff, CFO Iain Mackay announced his plans to retire in May 2023, to be replaced by Julie Brown. Having served in previous CFO posts at both the luxury goods brand Burberry, as well as the pharmaceutical firm AstraZeneca, we look forward to following Ms. Brown’s initiatives at GSK.
Moreover, the company has been advancing on our catalyst of market share gains for Shingrix, its vaccine to prevent shingles. Shingrix again delivered record sales growth and continues to be a key driver of GSK’s vaccine revenue expansion. Lastly, legal concerns related to potential side effects from the heartburn medicine Zantac made headlines. Although Zantac was marketed by several firms and its associated risks have been known for a number of years, upcoming lawsuits in the U.S. received media attention this quarter. We are closely following the litigation and may have more to share in future commentaries. In the interim, we find the price adjustment to be overdone. The largest side effect‐related drug settlements have been in the single‐digit billions, while more than £20 billion in market capitalization has been removed from GSK. Despite recent share price declines, we remain confident in GSK’s ability to further penetrate markets with its current products and evolve its pipeline of innovative medicines.”
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GSK plc (NYSE:GSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held GSK plc (NYSE:GSK) at the end of the third quarter, which was 34 in the previous quarter.
We discussed GSK plc (NYSE:GSK) in another article and shared the list of best biotech stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 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.
