Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the U.S. equity market reached a record high. Aristotle Atlantic’s Core Equity strategy returned 5.61% gross of fees (5.51% net of fees) in the quarter outperforming the S&P 500 Index’s 4.28% total return. The relative outperformance was due to security selection. Security selection in Information Technology and Health Care contributed the most to relative performance while Consumer Staples and Consumer Discretionary detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Atlantic Core Equity Strategy highlighted stocks like Accenture plc (NYSE:ACN), in the second quarter 2024 investor letter. Accenture plc (NYSE:ACN) is a professional services company. The one-month return of Accenture plc (NYSE:ACN) was 8.44%, and its shares gained 4.37% of their value over the last 52 weeks. On July 23, 2024, Accenture plc (NYSE:ACN) stock closed at $330.33 per share with a market capitalization of $206.913 billion.
Aristotle Atlantic Core Equity Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2024 investor letter:
“We sold Accenture plc (NYSE:ACN) and see more limited upside for Accenture due to continuing trends of more selective IT budget spend and a reallocation of IT budgets to support AI initiatives. We believe growth rates for IT services will be lower over the next few years as enterprises continue to digest spending from the pandemic and focus on more cost-benefit analysis for IT initiatives, leading to longer sales cycles and more targeted projects.”
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Accenture plc (NYSE:ACN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter which was 58 in the previous quarter. Accenture plc’s (NYSE:ACN) revenues for the third quarter of fiscal 2024 were $16.5 billion, a 1% decline in US dollars. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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.
In another article, we discussed Accenture plc (NYSE:ACN) and shared Polen Focus Growth Strategy’s views on the company. Aristotle Capital International Equity Strategy expressed optimism about Accenture plc’s (NYSE:ACN) future potential in its Q2 2024 quarterly report. In addition, please check out our hedge fund investor letters Q2 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.
