Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market finished the year strongly, with the S&P 500 Index rising 2.41% in Q4. The Bloomberg U.S. Aggregate Bond Index, on the other hand, fell 3.06% during the quarter. Aristotle Atlantic’s Focus Growth strategy returned 5.05% gross of fees (5.03% net of fees) in the quarter underperforming the Russell 1000 Growth Index’s 7.07% total return. A combination of allocation effects and security selection drove the underperformance of the portfolio in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Atlantic Focus Growth Strategy highlighted stocks like DexCom, Inc. (NASDAQ:DXCM), in the fourth 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 9.70%, and its shares lost 30.32% of their value over the last 52 weeks. On February 3, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $87.05 per share with a market capitalization of $34.087 billion.
Aristotle Atlantic Focus Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q4 2024 investor letter:
“We sold DexCom, Inc. (NASDAQ:DXCM) after the surprisingly weak second quarter earnings report and only a modest recovery in the third quarter. The U.S. sales trends remain weak, and we believe that it could take a while for Dexcom to regain the premium multiple it has historically enjoyed. Dexcom is working to fix the durable medical equipment (DME) sales channel, and this could take time. The recently announced Stelo product for non-diabetic users could add an additional level of variability to quarterly earnings reports as well.”
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the third quarter which was 64 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 the list of best weight loss stocks to buy according to hedge funds. 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.