Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Aristotle Atlantic’s Large Cap Growth Strategy delivered 8.77% gross of fees (8.71% net of fees) outperforming the Russell 1000 Growth Index’s return of 8.33%. Security selection led the portfolio to outperform in the quarter. Security selection in Information Technology and Financials contributed the most to relative performance while health care and Industrials detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Aristotle Atlantic Large Cap Growth Strategy highlighted stocks like Broadcom Inc. (NASDAQ:AVGO) in the second quarter 2024 investor letter. Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor devices. Broadcom Inc.’s (NASDAQ:AVGO) one-month return was 1.15%, and its shares gained 78.64% of their value over the last 52 weeks. On July 22, 2024, Broadcom Inc. (NASDAQ:AVGO) stock closed at $161.06 per share with a market capitalization of $749.715 billion.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q2 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. The company strategically focuses its research and development resources to address niche opportunities in target markets and leverage its extensive portfolio of U.S. and other patents and other intellectual property to integrate multiple technologies and create system-on-chip component and software solutions that target growth opportunities. Broadcom designs products and software that deliver high performance and provide mission-critical functionality. The company has a history of innovation in the semiconductor industry and offers thousands of products that are used in end products such as enterprise and data center networking, home connectivity, “set-top boxes broadband access”, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom differentiates itself through its high-performance design and integration capabilities and focuses on developing products for target markets where it believes it can earn attractive margins.
We view Broadcom’s semiconductor business as being very well positioned to benefit from secular growth in data center networking, which is being driven by AI and cloud computing. The company continues to invest in research and development, and we see this as a competitive advantage for the company. Broadcom’s infrastructure software business is a recurring revenue business model that provides mission-critical mainframe support software to its customer base. The recent VMware acquisition will enhance this business strategy and accelerate the growth rate of this business unit, as VMware’s product suite includes key tools for AI server upgrades. Our long-term investment thesis is supported by Broadcom’s success in its strategy of maintaining technology and market share leadership in mission-critical markets with high switching costs and deep profit pools.”
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 15th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 115 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the first quarter which was 91 in the previous quarter. Consolidated net revenue of Broadcom Inc. (NASDAQ:AVGO) in the fiscal second quarter of 2024 was $12.5 billion, an increase of 43% year-on-year, including contribution from VMware. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) 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 Broadcom Inc. (NASDAQ:AVGO) and shared the list of stocks Jim Cramer believes are worth buying. Broadcom Inc. (NASDAQ:AVGO) is ranked top on the list. 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.
