Johnson & Johnson (JNJ) Declined Amid Broad Sell-Off in Healthcare

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of 2025 concluded on a remarkable note, with U.S. stocks bouncing back from earlier volatility to reach new record highs. The S&P 500® Index and the Nasdaq Composite led the recovery, both ending the second quarter at all-time peaks. In the second quarter, the strategy returned +14.29% net of fees, compared to +11.10% and +10.94% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Mar Vista U.S. Quality Premier Strategy highlighted stocks such as Johnson & Johnson (NYSE:JNJ). Johnson & Johnson (NYSE:JNJ) is a multinational company that engages in the research, development, and manufacturing of products in the healthcare field. The one-month return of Johnson & Johnson (NYSE:JNJ) was 0.38%, and its shares gained 5.21% of their value over the last 52 weeks. On July 10, 2025, Johnson & Johnson (NYSE:JNJ) stock closed at $157.69 per share, with a market capitalization of $382.837 billion.

Mar Vista U.S. Quality Premier Strategy stated the following regarding Johnson & Johnson (NYSE:JNJ) in its second quarter 2025 investor letter:

"Johnson & Johnson (NYSE:JNJ) declined 7% during the quarter amid a broad selloff in healthcare which led to the sector’s worst relative performance in twenty-five years. Proposed regulatory changes and tariffs impacting drug prices, research and development investments, manufacturing and insurance coverage all converged to create uncertainty for the sector. JNJ also suffered a setback to put talc liabilities behind them when a Texas court ruled the company’s bankruptcy strategy was not allowed. The company will return to litigating lawsuits in the courts, where the company has won 15 out of 16 cases."

Johnson & Johnson (NYSE:JNJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held Johnson & Johnson (NYSE:JNJ) at the end of the first quarter, compared to 98 in the previous quarter. While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Johnson & Johnson (NYSE:JNJ) and shared the list of most undervalued NYSE stocks to buy. In the previous quarter, Mar Vista U.S. Quality Select Strategy attributed Johnson & Johnson's (NYSE:JNJ) rise to strong fundamentals and favorable market sentiment. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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