Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The composite returned 7.63% gross of fees (7.56% net of fees) in the first quarter trailing the 8.99% return of the Russell 1000 Value Index and the 10.56% return of the S&P 500 Index. Security selection and allocation effects led the composite to underperform in the quarter relative to the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Capital’s Value Equity Strategy featured stocks like Adobe Inc. (NASDAQ:ADBE) in the Q1 2024 investor letter. Headquartered in Atlanta, Georgia, Adobe Inc. (NASDAQ:ADBE) is a diversified software company operates through Digital Media, Digital Experience, and Publishing and Advertising. On April 12, 2024, Adobe Inc. (NASDAQ:ADBE) stock closed at $474.09 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was -3.73%, and its shares gained 24.96% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $212.392 billion.
Aristotle Capital’s Value Equity Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its first quarter 2024 investor letter:
“Adobe Inc. (NASDAQ:ADBE), the content creation and publishing software provider, was the leading detractor for the quarter. The company continues to benefit from its shift to a subscription model, with almost 95% of its record $19.4 billion in fiscal year 2023 revenue coming from subscriptions, while continuing to invest in innovation that expands its addressable market. Nevertheless, investors seem concerned with some of the lower-cost alternatives entering the market, including Sora, an OpenAI platform that produces videos from text. While much attention has also been placed on Adobe’s Firefly, a generative AI service that has already produced more than 6.5 billion images since launch in March 2023, we will take our time to understand Adobe’s AI monetization strategy. In the meantime, we continue to believe that the combination of Express, Firefly, Creative Cloud, Acrobat and Experience Cloud provides a unique solution to address all the content and data needs of clients and their management of the customer experience. In addition to innovation, Adobe continues to generate and return cash to shareholders, exemplified most recently by its new $25 billion stock repurchase program.”
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Adobe Inc. (NASDAQ:ADBE) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Adobe Inc. (NASDAQ:ADBE) was held by 105 hedge fund portfolios, compared to 112 in the previous quarter, according to our database.
We previously discussed Adobe Inc. (NASDAQ:ADBE) in another article, where we shared the list of biggest software companies in the US. In addition, please check out our hedge fund investor letters Q1 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.
