Ensemble Capital Management, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fund saw exceptionally excellent absolute and relative performance in the fourth quarter. The fund was up 16.00% in the quarter while the S&P 500 appreciated 11.69%. The fund was up 21.75% for the full year vs the S&P 500 up 26.29%. The fund’s underperformance was due to its investment in First Republic, which the fund exited in March. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Ensemble Capital Management featured stocks such as ServiceNow, Inc. (NYSE:NOW) in the fourth quarter 2023 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a global cloud computing solutions provider. On January 18, 2024, ServiceNow, Inc. (NYSE:NOW) stock closed at $745.96 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 6.45%, and its shares gained 74.11% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $152.963 billion.
Ensemble Capital Management stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its fourth quarter 2023 investor letter:
“ServiceNow, Inc. (NYSE:NOW) (5.01% weight in the Fund): ServiceNow, a company which Nvidia’s CEO has highlighted as one of the best positioned companies to bring the value of AI to its customers, offers online workflow systems to corporations. For instance, if you work at a large company and you call the HR department to ask about parental leave policies, the person you are talking to may well be working in a ServiceNow software package as they process your request. With their new generative AI powered Now Assist offering, corporate customers can deploy a ChatGPT like interface to their employees that has been trained on the company’s own HR policies. And the system can take actions based on employee requests.
The company is also deploying generative AI solutions to support workers in the field. For instance, a service representative sent out to fix a bank ATM can use ServiceNow’s traditional system to enter details about the work they’ve completed. But using Now Assist, the AI will draft notes based on the actions taken by the field worker, which can then simply be reviewed and approved.
ServiceNow (5.01% weight in the Fund): Despite persistent worries of global macroeconomic weakness slowing demand for ServiceNow’s software, the company reported third quarter growth accelerated to 25%. Strong results in their core business, as well as expectations that the company is well positioned to help its customers leverage artificial intelligence, sent the stock up 26.4% in the quarter. Despite the stock falling 51% from its highs in 2021 to its lows in 2022, the stock finished 2023 at new highs.”
A woman using a tablet to navigate the cloud-based bill payment technology.
ServiceNow, Inc. (NYSE:NOW) is in 24th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of third quarter which was 93 in the previous quarter.
We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the list of analysts say these AI stocks will skyrocket in 2024. In addition, please check out our hedge fund investor letters Q4 2023 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.
