Here’s Why Aristotle Atlantic Focus Growth Strategy Sold Twilio (TWLO)

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Aristotle Atlantic’s Focus Growth strategy posted a return of 2.66% net of fees compared to a 2.20% return for the Russell 1000 Growth Index. Stock selection and allocation led the strategy to outperform in the quarter relative to its benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Atlantic Focus Growth Strategy highlighted stocks like Twilio Inc. (NYSE:TWLO) in the fourth quarter 2022 investor letter. Headquartered in San Francisco, California, Twilio Inc. (NYSE:TWLO) is a cloud communications platform provider. On April 5, 2023, Twilio Inc. (NYSE:TWLO) stock closed at $59.32 per share. One-month return of Twilio Inc. (NYSE:TWLO) was -17.75%, and its shares lost 61.32% of their value over the last 52 weeks. Twilio Inc. (NYSE:TWLO) has a market capitalization of $12.021 billion.

Aristotle Atlantic Focus Growth Strategy made the following comment about Twilio Inc. (NYSE:TWLO) in its Q4 2022 investor letter:

“We sold Twilio Inc. (NYSE:TWLO) and thereby reduced our subsector weight in software. The company reported a decent third quarter, but disappointed on fourth quarter 2022, full year 2023, and long-term guidance. The company is seeing macroeconomic headwinds and a slowdown spreading from technology, social media and cryptocurrency to retail and e-commerce. The other negative disclosure and a driver of this gross margin “miss” was that Twilio’s software sales are not accelerating at the rate that we expected. We are disappointed with this lower topline and low operating margin improvement guidance. The business transformation is taking longer than expected, and there is the heightened possibility that the new software growth could be stifled by more formidable competition as Twilio has made too many missteps.”

Twilio Inc. (NYSE:TWLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Twilio Inc. (NYSE:TWLO) at the end of the fourth quarter which was 58 in the previous quarter.

We discussed Twilio Inc. (NYSE:TWLO) in another article and shared the list of best communication stocks to buy. 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.