Aristotle Capital Small Cap Equity Strategy Sold AZZ (AZZ) on Stock Price Appreciation

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund delivered a return of -1.56% net of fees (-1.41% gross of fees) outperforming the Russell 2000 Index’s -3.28% total return. Security selection drove the outperformance while allocation effects also contributed. For more information on the fund’s best picks in 2024, please check its top five holdings.

Aristotle Small Cap Equity Strategy highlighted stocks like AZZ Inc. (NYSE:AZZ) in its Q2 2024 investor letter. AZZ Inc. (NYSE:AZZ) offers hot-dip galvanizing and coil coating solutions. The one-month return of AZZ Inc. (NYSE:AZZ) was -6.38%, and its shares gained 86.39% of their value over the last 52 weeks. On July 26, 2024, AZZ Inc. (NYSE:AZZ) stock closed at $82.18 per share with a market capitalization of $2.45 billion.

Aristotle Small Cap Equity Strategy stated the following regarding AZZ Inc. (NYSE:AZZ) in its Q2 2024 investor letter:

“AZZ Inc. (NYSE:AZZ), a provider of hot dip galvanizing and coil coating solutions, was sold during the quarter as the company’s stock price appreciated significantly since our initial purchase causing the reward to risk ratio to compress.”

A factory worker pouring molten steel into a cast, demonstrating the strength of the metal fabrication industry.

AZZ Inc. (NYSE:AZZ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held AZZ Inc. (NYSE:AZZ) at the end of the first quarter which was 14 in the previous quarter. AZZ Inc. (NYSE:AZZ) reported record revenue of $413 million in the first quarter. While we acknowledge the potential of AZZ Inc. (NYSE:AZZ) 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 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.