Here’s Why Aristotle Capital Exited Twitter (TWTR) in the Second Quarter

Aristotle Capital Management, LLC, an investment management company, released its “Aristotle Global Equity Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -13.17% at NAV compared to a -15.66% return for the MSCI ACWI Index and -16.19% return for the MSCI World Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Capital discussed stocks like Twitter, Inc. (NYSE:TWTR) in the second quarter 2022 investor letter. Headquartered in San Francisco, California, Twitter, Inc. (NYSE:TWTR) is public self-expression platform. On October 6, 2022, Twitter, Inc. (NYSE:TWTR) stock closed at $49.39 per share. One-month return of Twitter, Inc. (NYSE:TWTR) was 17.07% and its shares lost 22.44% of their value over the last 52 weeks. Twitter, Inc. (NYSE:TWTR) has a market capitalization of $37.796 billion.

Here is what Aristotle Capital specifically said about Twitter, Inc. (NYSE:TWTR) in its Q2 2022 investor letter:

“We first invested in Twitter, Inc. (NYSE:TWTR) in the third quarter of 2018. During our holding period, the company executed on some catalysts that include improving the health of the platform (though more improvements can certainly be made) and enhancing the advertising server to allow for a greater mix of direct response ads. However, Twitter disappointed on others, chief among them being the company’s inability to gain market share. Furthermore, we recently began evaluating the strategy of new CEO Parag Agrawal (appointed at the end of 2021), but the prospect of changes under his leadership was overcome by Elon Musk’s $44 billion offer ($54.20 per share) to acquire Twitter. As the investment case became more reliant on a merger-arbitrage scenario – and less about Twitter’s business fundamentals – we exited our position in late April/early May and invested the proceeds in Munich Re Group, which is discussed below.”

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Twitter, Inc. (NYSE:TWTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Twitter, Inc. (NYSE:TWTR) at the end of the second quarter which was 68 in the previous quarter.

We discussed Twitter, Inc. (NYSE:TWTR) in another article and shared LVS Advisory’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.