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This is why Royal Philips NV (PHG) is on Artisan Value Fund’s list of biggest risers

Posted on by Vaseline
This is why Royal Philips NV (PHG) is on Artisan Value Fund’s list of biggest risers

Artisan Partners, an asset manager, released its Q2 2024 investor letter, “Artisan Value Fund.” A copy of the letter can be downloaded here. U.S. markets contracted in the second quarter after broad market activity drove U.S. equities higher in late 2023 and early 2024, with a few mega-cap technology names driving the S&P 500® Index to record highs on AI FOMO. The fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned -2.41%, -2.36%, and -2.36%, respectively, in the second quarter, compared to -2.17% for the Russell 1000 Value Index. Positive stock selection in the consumer discretionary and communication services sectors offset disappointing performance in the industrials and consumer staples sectors in the second quarter. Additionally, you can view the strategy’s top 5 holdings to see the best picks in 2024.

Artisan Value Fund highlighted stocks like Koninklijke Philips NV (NYSE:PHG) in its Q2 2024 investor letter. Koninklijke Philips NV (NYSE:PHG) is a health technology company that operates through the Diagnosis & Treatment Business, Connected Care Business, and Personal Health segments. Koninklijke Philips NV (NYSE:PHG)’s one-month return was 2.72% and the stock gained 44.48% of its value over the past 52 weeks. On September 4, 2024, Koninklijke Philips NV (NYSE:PHG) stock closed at $29.80 per share with a market cap of $27.908 billion.

Artisan Value Fund has stated the following regarding Royal Philips NV (NYSE:PHG) in its Q2 2024 investor letter:

“Looking at the positive side of the ledger, our biggest gainers this quarter were Alphabet, Royal Philips NV (NYSE:PHG) and Texas Instruments. The uncertainty surrounding potential legal liabilities related to Philips’ first-generation CPAP machine, which had been a hangover for the stock, was removed when the healthcare technology company reached a $1.1 billion settlement over claims that the respirator harmed users. The dollar amount of the settlement is in line with our expectations but appears to be much smaller than others had expected, given the immediate share price move of 30% or more on the announcement. With the litigation resolved, the company can now return to the fundamentals of its underlying businesses and comply with the requirements of its consent decree with the U.S. government. The consent decree provides a roadmap of required actions and prohibitions, a process that will likely take three years. As part of the consent decree, Philips is prohibited from selling CPAP or BiPAP sleep devices in the U.S. However, Philips can still service sleep and respiratory care devices that are already with caregivers and patients and can continue to sell other products in the U.S. Furthermore, it does not affect the company’s sales outside the US. The general terms are as expected and Philips now has a way to eventually return to the market.”

A medical professional using a magnetic resonance imaging (MRI) system to diagnose a patient in a hospital.

Koninklijke Philips NV (NYSE:PHG) is not on our list of 31 most popular stocks among hedge funds. According to our database, 11 hedge fund portfolios held Koninklijke Philips NV (NYSE:PHG) at the end of the second quarter, compared to 12 in the previous quarter. While we recognize the potential of Koninklijke Philips NV (NYSE:PHG) as an investment, our conviction is based on the belief that AI stocks offer a greater opportunity for higher returns, and within a shorter time frame. If you’re looking for an AI stock with the same promise as NVIDIA but trading at less than 5x earnings, check out our report on the cheapest AI stocks.

In another article, we discussed Royal Philips (NYSE:PHG) and shared Artisan Value Income Fund’s view on the company in the previous quarter. Additionally, check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ ALSO: Michael Burry is selling these shares And A new era dawns for US stocks.

Disclosure: None. This article was originally published on Insider monkey.

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