ClearBridge Investments, an investment management company, released its “ClearBridge Dividend Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed its S&P 500 Index benchmark in the third quarter. The strategy gained from three of the eleven sectors it invested in during the quarter on an absolute basis. Stock selection detracted while sector allocation contributed positively on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Dividend Strategy highlighted stocks like Gilead Sciences, Inc. (NASDAQ:GILD) in the third quarter 2023 investor letter. Headquartered in Foster City, California, Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company. On October 10, 2023, Gilead Sciences, Inc. (NASDAQ:GILD) stock closed at $75.97 per share. One-month return of Gilead Sciences, Inc. (NASDAQ:GILD) was -1.73%, and its shares gained 16.18% of their value over the last 52 weeks. Gilead Sciences, Inc. (NASDAQ:GILD) has a market capitalization of $94.659 billion.
ClearBridge Dividend Strategy made the following comment about Gilead Sciences, Inc. (NASDAQ:GILD) in its Q3 2023 investor letter:
“During the quarter we initiated positions in two new names: T-Mobile and Gilead Sciences, Inc. (NASDAQ:GILD). Gilead Sciences is a large biopharmaceutical company we have long followed given its dominant position in HIV treatment and strong intellectual property position. With pandemic-induced distortions on quarterly financials largely in the rearview mirror (Veklury — aka Remdesivir — was an overnight success as an antiviral treatment of COVID), we believe Gilead’s organic revenue growth potential over the next many years is in the mid-single digits. Gilead’s growth should be stable, as the company has no major patent expirations until the early 2030s.
While less growthy than some high-flying drug classes (e.g., diabetes/obesity), Gilead’s current valuation is undemanding, with a P/E barely in the double digits. We tend to shy away from health care investments whose valuation is dependent on pipeline drugs transforming into a large commercial opportunity, given the uncertain nature of drug discovery and the binary characteristic of the stock reactions. In Gilead’s case, we believe the market is ascribing virtually no value to its existing pipeline, in effect providing us with a “free” call option. Lastly, Gilead’s 4% (and growing) coupon should offer considerable downside support amid a more challenging market backdrop.”
Gilead Sciences, Inc. (NASDAQ:GILD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Gilead Sciences, Inc. (NASDAQ:GILD) at the end of second quarter which was 60 in the previous quarter.
We discussed Gilead Sciences, Inc. (NASDAQ:GILD) in another article and shared Ariel Global Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- Top 15 Countries Where Sports Betting is Popular
- 10 Best Natural Resources ETFs
- 12 Best Places to Retire in South Korea
Disclosure: None. This article is originally published at Insider Monkey.
