Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, Aristotle Atlantic’s Focus Growth strategy returned 12.02% gross of fees (11.91% net of fees) outperforming the S&P 500 Index’s 10.56% total return. The relative outperformance was due to security selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Aristotle Atlantic Core Equity Strategy highlighted stocks like Darling Ingredients Inc. (NYSE:DAR), in the first quarter 2024 investor letter. Darling Ingredients Inc. (NYSE:DAR), with a market capitalization of $6.452 billion, develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The one-month return of Darling Ingredients Inc. (NYSE:DAR) was -9.37%, and its shares lost 36.31% of their value over the last 52 weeks. On May 23, 2024, Darling Ingredients Inc. (NYSE:DAR) stock closed at $40.58 per share.
Aristotle Atlantic Core Equity Strategy stated the following regarding Darling Ingredients Inc. (NYSE:DAR) in its first quarter 2024 investor letter:
“Darling Ingredients Inc. (NYSE:DAR) detracted from portfolio performance in the quarter, as shares were weak following an in-line quarterly earnings report in which Darling refrained from providing full-year guidance due to low fat prices and its view that fat prices had bottomed. Rather than attempting to predict where fat prices might go during the year, management explained that it wanted to wait until the first quarter earnings call to provide more color. The company did talk about a soft floor for EBITDA in the $1.45 billion to $1.55 billion range for the year should fat prices remain depressed. Darling Ingredients remains confident in the discussions it is having with global cargo and passenger air carriers about takeaway agreements for its planned sustainable aviation fuel production, and any announcement could prove to be a catalyst given the depressed valuation currently. We believe shares should re-rate as investors gain confidence in the long-term cashflow generation ability of the company’s unique assets.”
A selection of pet food ingredients being prepared in a kitchen for quality and safety testing.
In the first quarter, Darling Ingredients Inc. (NYSE:DAR) generated $1.42 billion in revenues compared to $1.79 billion for the first quarter of 2023 and its net income was $81.2 million in the quarter compared to $185.8 million in Q1 2023.
Darling Ingredients Inc. (NYSE:DAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Darling Ingredients Inc. (NYSE:DAR) at the end of the first quarter which was 34 in the previous quarter.
In another article, we discussed Darling Ingredients Inc. (NYSE:DAR) and shared the list of best farmland and agriculture stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
