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 Accenture plc (NYSE:ACN), in the second quarter 2024 investor letter. Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was 11.40%, and its shares lost 1.41% of their value over the last 52 weeks. On July 15, 2024, Accenture plc (NYSE:ACN) stock closed at $317.87 per share with a market capitalization of $199.109 billion.
Aristotle Capital International Equity Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2024 investor letter:
“Accenture plc (NYSE:ACN), the global IT services and consulting firm, was the largest detractor during the quarter. The broader consulting industry has seen a softening of demand as corporate clients have reined in spending amid higher interest rates and macroeconomic uncertainty. While we understand the cyclical nature of the industry, with Accenture’s revenue down just 1% year-over-year, we believe the recent pressure on the company’s share price to be overdone. Bookings have remained strong in the first half of the year, especially for large deals, while generative AI sales surpassed $2 billion for the same period. Accenture’s end-to-end services, functional and geographic scale, industry expertise, and integration within client systems make it uniquely able to perform the large-scale digital transformations its corporate customers’ demand. Moreover, we believe Accenture’s breadth of research and development resources make it well positioned to continue to provide solutions and deepen its partnerships with many of the world’s largest companies as they respond to and seek to implement constantly evolving technologies (including generative AI).”
A team of data experts gathered around a computer monitor analyzing customer data.
Accenture plc (NYSE:ACN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter which was 58 in the previous quarter. Revenues of Accenture plc (NYSE:ACN) for the third quarter of fiscal 2024 were $16.5 billion, a 1% decline in US dollars. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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 Accenture plc (NYSE:ACN) and shared ClearBridge Large Cap Growth Strategy’s views on the company in the previous quarter. 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.
