We recently published a list of Top 10 Stocks to Buy According to Sustainable Insight Capital Management. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against other top stocks to buy according to sustainable insight capital management.
Sustainable Insight Capital Management (SICM) focuses on institutional investments, offering both long-only and long-short strategies in public equities. Established by an experienced leadership team with deep institutional knowledge, the hedge fund is committed to providing investment solutions that emphasize sustainability. As of the fourth quarter of 2024, SICM reported managing nearly $228.52 million in 13F securities, with its top 10 holdings making up 56.36% of its portfolio.
Kevin Edward Parker is the founder and Chief Executive Officer of Sustainable Insight Capital Management LLC, which he established in 2013. He also founded Sustainable Insight Capital Management (UK) Ltd. that same year and serves as its CEO as well. Parker earned his undergraduate degree from New York University in 1981. With over 30 years of experience on Wall Street, he has built a distinguished career in investment management and financial leadership. Before launching SICM, Kevin Parker played a key role at Deutsche Bank, where he was a member of the Group Executive Committee from 2001 to 2004 and led its asset management division as Global Head from 2004 to 2012. His extensive expertise in sustainable investing and institutional asset management has positioned SICM as a leader in responsible investment strategies.
Beyond his work at SICM, Parker holds several leadership positions in various organizations. Since 2004, he has also served as Vice Chairman of the New York Police & Fire Widow’s & Children’s Benefit Fund. Additionally, he has been an Independent Director at The Westaim Corporation since 2020, an Independent Non-Executive Director at United Co. RUSAL International PJSC since 2019, and a Director at both Next Jump, Inc. and Westaim Arena Holdings II LLC since 2016. His previous roles include Chairman of the Management Board at DWS International GmbH from 2011 to 2012 and a Director at the Sustainability Accounting Standards Board from 2014 to 2018. He has also held leadership positions at Agri. Capital Group SA, DB Climate Change Advisors, and Green Partners Technology Holdings GmbH.
Our Methodology
The stocks discussed below were picked from Sustainable Insight Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of Sustainable Insight Capital Management’s stake in them as of the fourth quarter of 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders as of Q4: 83
SICM’s Equity Stake: $15.65 Million
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading global cybersecurity firm headquartered in Santa Clara, California, specializing in advanced firewalls and cloud-based security solutions. The company provides services to 80,000 organizations across more than 150 countries, including 85 of the Fortune 100.
Founded in 2005 by Nir Zuk, an engineer with experience at Check Point and NetScreen Technologies, Palo Alto Networks, Inc. (NASDAQ:PANW) quickly emerged as a cybersecurity powerhouse. The company provides a range of cybersecurity solutions, including its Network Security Platform, Cloud-Delivered Security Services, and Next-Generation Firewalls. It also offers Secure Access Service Edge (SASE), comprehensive cloud security solutions, and an AI-driven Security Operations Platform. Additionally, Palo Alto Networks delivers Threat Intelligence and Incident Response Services to help organizations proactively defend against cyber threats.
As of Q4 2024, Sustainable Insight Capital Management held 86,006 shares of Palo Alto Networks, Inc. (NASDAQ:PANW), valued at approximately $15.65 million, making it the third-largest holding in Parker’s portfolio. By the end of the fourth quarter of 2024, 83 hedge funds tracked by Insider Monkey had investments in the company, with a total value of nearly $1.88 billion, an increase from 64 funds in Q3. Palo Alto Networks’ strong market presence, innovative cybersecurity solutions, and growing institutional investment indicate its potential for long-term growth. With increasing global cybersecurity threats and the company’s consistent expansion in AI-driven security and cloud-based services, it remains a compelling stock for investors seeking stability and future upside.
Parnassus Growth Equity Fund stated the following regarding Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q2 2024 investor letter:
“Palo Alto Networks, Inc. (NASDAQ:PANW) has been a profitable position for the portfolio. Given its elevated valuation, we decided to sell it to fund the purchase of Workday, where we see greater opportunity and a clearer story of margin expansion potential.”
Overall, PANW ranks 3rd on our list of top stocks to buy according to sustainable insight capital management. While we acknowledge the potential for PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
