Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 10.57% gross of fees, underperforming the Russell 1000 Value Index, which returned 12.42%. The underperformance of the fund relative to the benchmark in the quarter was attributed to the stock selection while the sector allocation had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Value Equity Strategy highlighted stocks like Elanco Animal Health Incorporated (NYSE:ELAN) in its Q4 2022 investor letter. Headquartered in Greenfield, Indiana, Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company. On March 24, 2023, Elanco Animal Health Incorporated (NYSE:ELAN) stock closed at $8.82 per share. One-month return of Elanco Animal Health Incorporated (NYSE:ELAN) was -23.90%, and its shares lost 66.99% of their value over the last 52 weeks. Elanco Animal Health Incorporated (NYSE:ELAN) has a market capitalization of $4.335 billion.
Aristotle Value Equity Strategy made the following comment about Elanco Animal Health Incorporated (NYSE:ELAN) in its Q4 2022 investor letter:
“During the quarter, we exited our investments in Sun Communities, Elanco Animal Health Incorporated (NYSE:ELAN) and Tyson Foods and established new positions in Merck and Sysco.
We were investors in the animal health company Elanco for a little over two years. At the time of initial investment, we believed that Elanco would benefit from being an independent company, and that this would be a significant catalyst. We now believe this catalyst has shifted outside of our time horizon, as we have concerns about the company’s integration of Bayer’s Animal Health business (acquired in 2020). In addition, competitor Zoetis seems to be taking further market share with its Simparica Trio, a one-pill treatment for heartworm, fleas and ticks. We continue to admire the animal health industry and, with our new investment in Merck, we have exposure (albeit smaller) to what we consider to be an attractive industry.”
Photo by Karlo Tottoc on Unsplash
Elanco Animal Health Incorporated (NYSE:ELAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Elanco Animal Health Incorporated (NYSE:ELAN) at the end of the fourth quarter which was 42 in the previous quarter.
We discussed Elanco Animal Health Incorporated (NYSE:ELAN) in another article and shared the list of best biotechnology stocks to buy under $20. 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.
