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 ON Semiconductor Corporation (NASDAQ:ON), in the second quarter 2024 investor letter. ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions. The one-month return of ON Semiconductor Corporation (NASDAQ:ON) was 13.99%, and its shares lost 22.70% of their value over the last 52 weeks. On July 22, 2024, ON Semiconductor Corporation (NASDAQ:ON) stock closed at 77.33 per share with a market capitalization of $33.27 billion.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its Q2 2024 investor letter:
“We sold ON Semiconductor Corporation (NASDAQ:ON) and have become more cautious on the global automotive market, especially for electric vehicles, which we believe will see a period of slower sales due to both new infrastructure requirements and consumers becoming more knowledgeable about the potential costs and issues with owning EVs. In addition, the market is becoming a lot more competitive on the supply side, with many new models being launched simultaneously, which we believe will lead to pricing pressures for the OEMs, which could create pricing headwinds for suppliers such as ON Semiconductor. While we see global EV penetration as continuing to increase over the next decade, supported by government incentives, we remain cautious in the near term and believe we are entering a period of lower sales trends following the explosive growth of the past three years.”
A technician soldering a semiconductor chip, emphasizing the power of the company’s products.
ON Semiconductor Corporation (NASDAQ:ON) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held ON Semiconductor Corporation (NASDAQ:ON) at the end of the first quarter which was 45 in the previous quarter. In the first quarter, ON Semiconductor Corporation (NASDAQ:ON) reported $1.86 billion in revenue, down 8% from Q4 2023 and 5% from Q1 2023. While we acknowledge the potential of ON Semiconductor Corporation (NASDAQ:ON) 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 ON Semiconductor Corporation (NASDAQ:ON) and shared Alger Mid Cap Growth Fund’s views on the company. Aristotle Atlantic Partners established a position in ON Semiconductor Corporation (NASDAQ:ON) during Q1 2023. 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.
