Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund posted a return of 6.92% net of fees compared to a 7.56% return for the S&P 500 Index. The fund’s underperformance in the quarter was primarily because of the security selection and allocation effects. Holdings in Health Care, Consumer Staples, and Industrials detracted from relative performance while holdings in Consumer Discretionary, Financials, and Information Technology contributed towards the relative performance of the strategy in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Core Equity Strategy highlighted stocks like Antero Resources Corporation (NYSE:AR) in the Q4 2022 investor letter. Headquartered in Denver, Colorado, Antero Resources Corporation (NYSE:AR) is an oil and natural gas company. On March 28, 2023, Antero Resources Corporation (NYSE:AR) stock closed at $22.20 per share. One-month return of Antero Resources Corporation (NYSE:AR) was -16.13%, and its shares lost 27.19% of their value over the last 52 weeks. Antero Resources Corporation (NYSE:AR) has a market capitalization of $6.555 billion.
Aristotle Core Equity Strategy made the following comment about Antero Resources Corporation (NYSE:AR) in its Q4 2022 investor letter:
“Antero Resources Corporation (NYSE:AR) is engaged in the development, production, exploration and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. Operating entirely within the U.S., Colorado-based Antero Resources holds approximately 502,000 net acres of oil and gas properties in Ohio and West Virginia. Antero Resources intends to leverage its team’s experience delineating and developing natural gas resource plays to continue developing its reserves and production, primarily on the company’s existing multi-year project inventory.
We see the company generating significant free cash flow (FCF) over the next few years and a sizable return of FCF to shareholders through buybacks. Antero Resources has significantly reduced its debt over the past three years. Longer-term structural tailwinds exist for natural gas and NGLs, as U.S. supply growth rates remains constrained by takeaway capacity additions and lower reinvestment rates by Exploration & Production (E&P), following years of shareholder pressure to reduce leverage and balance shareholder returns with growth. We continue to see a structural shift in demand for natural gas and NGLs supporting prices at these levels or higher leading to attractive FCF growth for Antero Resources.”
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Antero Resources Corporation (NYSE:AR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Antero Resources Corporation (NYSE:AR) at the end of the fourth quarter which was 65 in the previous quarter.
We discussed Antero Resources Corporation (NYSE:AR) in another article and shared the list of best falling stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.
