Aristotle Value Equity Strategy Sold Tyson Foods (TSN) Despite Strong Catalysts

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 10.57% gross of fees, underperforming the Russell 1000 Value Index, which returned 12.42%. The underperformance of the fund relative to the benchmark in the quarter was attributed to the stock selection while the sector allocation had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Value Equity Strategy highlighted stocks like Tyson Foods, Inc. (NYSE:TSN) in its Q4 2022 investor letter. Headquartered in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) is a food company. On March 24, 2023, Tyson Foods, Inc. (NYSE:TSN) stock closed at $57.06 per share. One-month return of Tyson Foods, Inc. (NYSE:TSN) was -5.55%, and its shares lost 34.24% of their value over the last 52 weeks. Tyson Foods, Inc. (NYSE:TSN) has a market capitalization of $20.292 billion.

Aristotle Value Equity Strategy made the following comment about Tyson Foods, Inc. (NYSE:TSN) in its Q4 2022 investor letter:

“During the quarter, we exited our investments in Sun Communities, Elanco Animal Health and Tyson Foods, Inc. (NYSE:TSN) and established new positions in Merck and Sysco.

We first invested in Tyson Foods during the second quarter of 2019. At the time, we were encouraged by what we had identified as the company’s demonstrated ability to “brand” what had been previously considered pure commodity products. Furthermore, we were attracted to Tyson’s Prepared Food business, consisting of a strong portfolio of brands with attractive margins and the opportunity to gain market share as consumer preferences shifted toward prepared foods. While we believe catalysts remain, we decided to sell, as we were concerned with management changes over the past year, starting with the CEO resigning in 2021 for personal reasons, followed by the resignation of the head of Prepared Foods and exacerbated by the company’s decision to name John R. Tyson, the 32-year-old son of the firm’s chairman, as CFO.”

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Tyson Foods, Inc. (NYSE:TSN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Tyson Foods, Inc. (NYSE:TSN) at the end of the fourth quarter which was 35 in the previous quarter.

We discussed Tyson Foods, Inc. (NYSE:TSN) in another article and shared the list of most valuable food companies in the world. In addition, please check out our hedge fund investor letters Q4 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.