Aristotle Atlantic Partners, an investment management firm, released its “Aristotle Atlantic Value Equity Fund” second quarter 2023 investor letter, a copy of which can be downloaded here. For the second quarter of 2023, Aristotle Capital’s Value Equity Composite posted a total return of 4.56% gross of fees (4.51% net of fees), outperforming the 4.07% return of the Russell 1000 Value Index and underperforming the 8.74% return of the S&P 500 Index. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q2 2023 investor letter, Aristotle Value Equity mentioned Parker-Hannifin Corporation (NYSE:PH) and explained its insights for the company. Founded in 1917, Parker-Hannifin Corporation (NYSE:PH) is a Cleveland, Ohio-based motion and control technologies and systems manufacturing company with a $52.0 billion market capitalization. Parker-Hannifin Corporation (NYSE:PH) delivered a 39.47% return since the beginning of the year, while its 12-month returns are down by 38.30%. The stock closed at $405.87 per share on August 02, 2023.
Here is what Aristotle Value Equity has to say about Parker-Hannifin Corporation (NYSE:PH) in its Q2 2023 investor letter:
“Parker Hannifin, the manufacturer of motion and control technologies, was a primary contributor during the quarter. In the latter half of 2022, the company closed on the acquisition of Meggitt. The cash transaction value of £7 billion (approximately $8.5 billion) was modest compared to the firm’s enterprise value of ~$50 billion, however a meaningful indication of management’s prowess. This, in our opinion, is a very well‐timed combination, as Meggitt adds complementary aerospace and defense businesses to an already existing strong portfolio. It should also support Parker Hannifin’s goal of shifting its portfolio toward aftermarket exposure—a catalyst we had identified forthe company—since aftermarketsales are typically highermargin and result in more predictable recurring revenues than original‐equipment sales. Importantly, Parker Hannifin is no stranger to successful acquisitions, having integrated dozens (though mostly smaller than Meggitt) throughout its history. As such, we look forward to the prospect of the latest combination, further positioning the company to achieve new heights.”
Our calculations show that Parker-Hannifin Corporation (NYSE:PH) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. Parker-Hannifin Corporation (NYSE:PH) was in 49 hedge fund portfolios at the end of the second quarter of 2023, compared to 47 funds in the previous quarter. Parker-Hannifin Corporation (NYSE:PH) delivered a 25.93% return in the past 3 months.
We also discussed Parker-Hannifin Corporation (NYSE:PH) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q2 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
