Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market continued its rise to new record highs, with the S&P 500 Index increasing by 5.89% during the period. Aristotle Atlantic’s Focus Growth strategy returned 2.84% gross of fees (2.82% net of fees) in the quarter underperforming the Russell 1000 Growth Index’s 3.19% total return. The relative outperformance was due to both allocation effects and security selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Focus Growth Strategy highlighted stocks like DexCom, Inc. (NASDAQ:DXCM), in the third quarter 2024 investor letter. DexCom, Inc. (NASDAQ:DXCM) is a medical device company that develops and commercializes continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was 3.55%, and its shares lost 27.64% of their value over the last 52 weeks. On October 31, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $70.48 per share with a market capitalization of $27.543 billion.
Aristotle Focus Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q3 2024 investor letter:
“DexCom, Inc. (NASDAQ:DXCM)detracted from performance in the third quarter following an uncharacteristic earnings miss, which manifested late in the quarter. The miss was attributed to share loss in the durable medical equipment (DME) channel, reaching a full rebate threshold with insurance companies sooner than expected and a recent salesforce realignment that resulted in slower new patient starts. Management was clear that these are Dexcom specific issues around execution and that they were taking action to remediate those effects. The company stood by their long-range plan which calls for 15%-plus topline growth. We believe Dexcom now trades at a relatively attractive valuation given the strong long-term growth profile.”
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the second quarter which was 73 in the previous quarter. In the third quarter, DexCom, Inc. (NASDAQ:DXCM) reported revenue of $994 million, compared to $975 million in Q3 2023. While we acknowledge the potential of DexCom, Inc. (NASDAQ:DXCM) 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 DexCom, Inc. (NASDAQ:DXCM) and shared Ithaka US Growth Strategy’s views on the company. DexCom, Inc. (NASDAQ:DXCM) detracted from the performance of Aristotle Atlantic Large Cap Growth Strategy in the previous quarter. 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.