Teva Pharmaceutical Industries Limited (TEVA) Expects Better Performance

Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to have an idea about their best picks for 2022.

In the Q2 2022 investment letter, the firm analyzed and explained the reasons for the underperformance of the fund. The letter discussed stocks like Teva Pharmaceutical Industries Limited (NYSE:TEVA), an international pharmaceutical company headquartered in Tel Aviv-Yafo, Israel. It has a market capitalization of $10.323 billion. The stock of Teva Pharmaceutical Industries Limited (NYSE:TEVA) closed at $9.14 per share on July 27, 2022. Teva Pharmaceutical Industries Limited (NYSE:TEVA) had a 5.08% return for the past month and its 12-month return dropped to -34.55%.

Here is what Miller Value Partners specifically said about Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q2 2022 investor’s letter:

“We own Teva Pharmaceuticals (NYSE:TEVA), the largest generic pharmaceutical manufacturer, that trades for 3x earnings with a 24% free cash flow yield. Prior management overlevered the balance sheet doing acquisitions. Current management has paid down net debt from $34B to $20B. Assuming it hits its leverage target at the end of next year, that free cash flow can come back to shareholders, or be used for other value accretive purposes.”

Our research shows that Teva Pharmaceutical Industries Limited (NYSE:TEVA) stock is not there in the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Teva Pharmaceutical Industries Limited (NYSE:TEVA) was in 26 hedge fund portfolios compared to 27 in the previous quarter. Teva Pharmaceutical Industries Limited (NYSE:TEVA) shares gained 2.47% over the last 52 weeks.

We published another article earlier this year on Teva Pharmaceutical Industries Limited (NYSE:TEVA). If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters Q2 2022 page.

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