Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. Aristotle Capital International Equity returned -0.85% gross of fees (-0.96% net of fees) in the second quarter lagging behind the MSCI EAFE Index’s -0.42% return, and the MSCI ACWI ex USA Index’s 0.96% return. Both allocation effects and security selection led the portfolio to relatively underperform the MSCI EAFE Index from a sector perspective. Regionally security selection drove the underperformance, while allocation effects had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Aristotle Capital International Equity Strategy highlighted stocks like Novartis AG (NYSE:NVS), in the second quarter 2024 investor letter. Novartis AG (NYSE:NVS) research, development, manufacture, and marketing of healthcare products. The one-month return of Novartis AG (NYSE:NVS) was 5.14%, and its shares gained 12.70% of their value over the last 52 weeks. On July 15, 2024, Novartis AG (NYSE:NVS) stock closed at $110.33 per share with a market capitalization of $225.118 billion.
Aristotle Capital International Equity Strategy stated the following regarding Novartis AG (NYSE:NVS) in its Q2 2024 investor letter:
“We have been investors in the Swiss pharmaceutical company Novartis AG (NYSE:NVS) for over a decade, having first purchased shares in 2011. During our holding period, the company has undergone significant changes. Vasant (“Vas”) Narasimhan was promoted to CEO in 2018 and, we believe, has positively influenced the company’s culture and helped shift the business more toward innovative medicines. Examples include the sale of Novartis’s consumer (over-the-counter) joint venture; the divestiture of its vaccines and animal health businesses; the spinoff of Alcon, a global leader in the treatment of eye diseases and eye conditions (also an International Equity holding); and most recently, the spinoff of generics manufacturer Sandoz. As part of its portfolio transformation, Novartis has been able to improve its margins and gain share of branded pharmaceuticals. With many catalysts having neared completion, we decided to sell Novartis to fund the purchase of what we believe is a more optimal investment in Roche.”
A doctor holding a microscope in front of a laboratory sample of healthcare products.
Novartis AG (NYSE:NVS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Novartis AG (NYSE:NVS) at the end of the first quarter which was 28 in the previous quarter. Net sales of Novartis AG (NYSE:NVS) were up 11% and core operating income was up 22% during the first quarter. While we acknowledge the potential of Novartis AG (NYSE:NVS) 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 Novartis AG (NYSE:NVS) and shared the list of best international dividend stocks to buy. 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.
