Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market wrapped up the year positively, as the S&P 500 Index increased by 2.41% in the quarter. Aristotle Atlantic’s Core Equity strategy returned 4.11% gross of fees (4.00% net of fees) in the quarter outperforming the S&P 500 Index’s 2.41% total return. The relative outperformance was due to a mix of security selection and allocation effects. 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 Spirit AeroSystems Holdings, Inc. (NYSE:SPR) in its Q4 2024 investor letter. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is a global aerospace company that designs, manufactures, and markets commercial aerostructures. The one-month return of Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was 0.68%, and its shares gained 20.72% of their value over the last 52 weeks. On February 3, 2024, Spirit AeroSystems Holdings, Inc. (NYSE:SPR) stock closed at $33.85 per share with a market capitalization of $3.969 billion.
Aristotle Atlantic Core Equity Strategy stated the following regarding Spirit AeroSystems Holdings, Inc. (NYSE:SPR) in its Q4 2024 investor letter:
“We sold Spirit AeroSystems Holdings, Inc. (NYSE:SPR) following the disclosure that the company reported in its 10-Q that there is a “growing concern risk” that has been driven by the disruption from the Boeing machinists’ strike. Although the strike has been settled, it will be several months before production returns to normal. We are also concerned that Boeing’s agreement to acquire Spirit could be renegotiated at a lower price. Finally, in the unlikely event of a disapproval of the Spirit acquisition by regulators, the shares may be subject to a significant decline.”
A commercial airliner being outfitted with pylons and struts, ensuring a safe flight.
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Spirit AeroSystems Holdings, Inc. (NYSE:SPR) at the end of the third quarter which was 32 in the previous quarter. While we acknowledge the potential of Spirit AeroSystems Holdings, Inc. (NYSE:SPR) 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 Spirit AeroSystems Holdings, Inc. (NYSE:SPR) and shared the list of worst aerospace stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 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.