Hardman Johnston Global Equity Strategy Initiated a Position in Elanco Animal Health (ELAN)

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” investor letter for the fourth quarter of 2025. A copy of the letter can be downloaded here. Global equity markets delivered robust results in the quarter, backed by easing inflation trends and strong economic data. The Hardman Johnston Global Equity Strategy returned 2.91%, net of fees, compared to the MSCI AC World Net Index’s 3.29% gain. The Financials and Consumer Staples sectors contributed to the performance, while the Industrials and Consumer Discretionary sectors detracted from relative performance. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Hardman Johnston Global Equity Strategy highlighted Elanco Animal Health Incorporated (NYSE:ELAN).  Elanco Animal Health Incorporated (NYSE:ELAN) is a leading animal health company. On January 27, 2026, Elanco Animal Health Incorporated (NYSE:ELAN) stock closed at $24.62 per share. One-month return of Elanco Animal Health Incorporated (NYSE:ELAN) was 8.79%, and its shares gained 100.33% of their value over the last three months. Elanco Animal Health Incorporated (NYSE:ELAN) has a market capitalization of $12.233 billion.

Hardman Johnston Global Equity Strategy stated the following regarding Elanco Animal Health Incorporated (NYSE:ELAN) in its fourth quarter 2025 investor letter:

"During the quarter we initiated positions in Cameco Corp., Citigroup Inc., Elanco Animal Health Incorporated (NYSE:ELAN), HDFC Bank Ltd., and Vertiv Holdings Co. Elanco Animal Health, Inc. is a leader in animal health markets with a 50/50 split between companion animal/farm animal. Mix is shifting towards companion animals which helps improve margins and growth rates. Between 2023-2026 launching seven potential blockbusters across different drug classes/species leading to margin expansion/portfolio leverage towards industry averages. Sale of the aqua business de-levered the company with net debt/EBITDA now <4x. The company is undergoing a turnaround following a period of operational underperformance as the new CFO started in mid-2025 with a better strategy."

Elanco Animal Health Incorporated (NYSE:ELAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held Elanco Animal Health Incorporated (NYSE:ELAN) at the end of the third quarter, up from 25 in the previous quarter. While we acknowledge the potential of Elanco Animal Health Incorporated (NYSE:ELAN) 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 Elanco Animal Health Incorporated (NYSE:ELAN) and shared the list of stocks Jim Cramer highlighted. In addition, please check out our hedge fund investor letters Q4 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.