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 Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -0.95%, and its shares gained 41.60% of their value over the last 52 weeks. On July 23, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $183.60 per share with a market capitalization of $2.257 trillion.
Aristotle Atlantic Core Equity Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
Alphabet Inc. (NASDAQ:GOOG) contributed to portfolio performance in the second quarter, boosted by a strong earnings report featuring better-than-expected revenues across all businesses. The company’s positive commentary on the long-term monetization of its AI investments, dividend initiation and increase in its share buyback program contributed to the strong performance. Additionally, evidence increasingly suggests that competitors’ GenAI use cases have not disrupted Alphabet’s search business, allowing the company to maintain its market leadership and attract incremental advertising dollars.
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Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 166 in the previous quarter. In the first quarter Alphabet Inc. (NASDAQ:GOOG) generated $80.5 billion in revenues, up 15% year-over-year (see the details here). While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared the list of biggest AI stock upgrades and downgrades in July so far. Alphabet Inc. (NASDAQ:GOOG) is 5th on the list. Alphabet Inc. (NASDAQ:GOOG) was a significant contributor to the returns of multiple investment firms in Q2 2024 like Polen Capital, Madison Investments, and Wedgewood Partners). 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.
