Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The composite returned 7.63% gross of fees (7.56% net of fees) in the first quarter trailing the 8.99% return of the Russell 1000 Value Index and the 10.56% return of the S&P 500 Index. Security selection and allocation effects led the composite to underperform in the quarter relative to the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Capital’s Value Equity Strategy featured stocks like Phillips 66 (NYSE:PSX) in its Q1 2024 investor letter. Headquartered in Houston, Texas, Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics company. On April 12, 2024, Phillips 66 (NYSE:PSX) stock closed at $162.49 per share. One-month return of Phillips 66 (NYSE:PSX) was 2.18%, and its shares gained 52.92% of their value over the last 52 weeks. Phillips 66 (NYSE:PSX) has a market capitalization of $69.022 billion.
Aristotle Capital’s Value Equity Strategy stated the following regarding Phillips 66 (NYSE:PSX) in its first quarter 2024 investor letter:
“During the quarter, we sold our positions in Phillips 66 (NYSE:PSX) and Sysco and invested in two new positions: Lowe’s Companies and TotalEnergies.
We first purchased Phillips 66, the energy manufacturing and logistics company, in the third quarter of 2012. During our over decade-long ownership period, the company transformed itself from a predominately refining operation to a significantly more diversified energy business. In 2012, refining represented nearly 75% of earnings, and today it is less than half. With the expansion of other businesses, including midstream which is underpinned by long-term fee-based contracts, as well as chemicals and marketing, we believe Phillips 66 has reduced its cyclicality while enhancing FREE cash flow generation, supporting increased returns to shareholders. In addition, the company has started to position itself for the energy transition and remains on track to convert its San Francisco refinery into one of the world’s largest renewable fuels facilities. While we continue to believe Phillips 66 is a high-quality company on the path to further improvement, we decided to sell our shares to fund the purchase of what we consider a more suitable and attractive investment in TotalEnergies.”
A refinery manager walking through an array of pipes and pumping systems, recognizing the company’s vast refining power.
Phillips 66 (NYSE:PSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Phillips 66 (NYSE:PSX) was held by 29 hedge fund portfolios, compared to 37 in the previous quarter, according to our database.
We previously discussed Phillips 66 (NYSE:PSX) in another article, where we shared the list of most valuable oil companies in the world. In addition, please check out our hedge fund investor letters Q1 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.
