Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Fundamental Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Large Cap Fundamental Value Fund returned - 0.91% in the fourth quarter, outperforming the Russell 1000 Value Index’s -1.98% return. However, for the full year, the portfolio underperformed the index returning 12.81% vs. 14.37% for the index. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund emphasized stocks such as CVS Health Corporation (NYSE:CVS). CVS Health Corporation (NYSE:CVS) is a US-based health solutions provider. The one-month return of CVS Health Corporation (NYSE:CVS) was 3.45%, and its shares lost 15.61% of their value over the last 52 weeks. On March 28, 2025, CVS Health Corporation (NYSE:CVS) stock closed at $67.14 per share with a market capitalization of $84.65 billion.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:

"CVS Health Corporation (NYSE:CVS) is a diversified healthcare company operating a Pharmacy Benefits Manager, health insurer, and retail stores and pharmacies. CVS underperformed in Q4 largely because of underperformance in the Aetna business due to unexpectedly higher costs, as well as the aforementioned decline in valuations across the peer group. Health insurance is a business that reprices yearly, so CVS should be able to recover its higher costs and restore margins within a year or two."

A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products.

CVS Health Corporation (NYSE:CVS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held CVS Health Corporation (NYSE:CVS) at the end of the fourth quarter compared to 63 in the third quarter. While we acknowledge the potential of CVS Health Corporation (NYSE:CVS) 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 cheapest AI stock.

We covered CVS Health Corporation (NYSE:CVS) in another article, where we shared the list of best healthcare stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q4 2024 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.