Aristotle Capital is Bearish on Adobe (ADBE)

Aristotle Capital Management, LLC, an investment management company, released its “Aristotle Core Equity Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -17.49% at NAV, underperforming the S&P 500 Index, which returned -16.10%. The underperformance of the fund was attributed to the stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Capital discussed stocks like Adobe Inc. (NASDAQ:ADBE). Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a global software company. On October 7, 2022, Adobe Inc. (NASDAQ:ADBE) stock closed at $288.77 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was -27.14% and its shares lost 49.61% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $138.731 billion.

Here is what Aristotle Capital specifically said about Adobe Inc. (NASDAQ:ADBE) in its Q2 2022 investor letter:

“We sold our position in Adobe Inc. (NASDAQ:ADBE) to reduce our weighting in the Information Technology sector. We continue to see risk in higher valuation technology names, such as Adobe, due to both slowing business trends and multiple compression. Adobe has exposure to both the SMB market segment as well as e-commerce, both areas which have shown pockets of weakness during the current earnings season.”

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Adobe Inc. (NASDAQ:ADBE) is in 22nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the second quarter which was 93 in the previous quarter.

We discussed Adobe Inc. (NASDAQ:ADBE) in another article and shared the best tech stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2022 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.