Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐2.99% gross of fees (‐3.05% net of fees), outperforming the Russell 1000 Value Index’s ‐3.16% return and the S&P 500 Index’s ‐3.27% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like Microchip Technology Incorporated (NASDAQ:MCHP) in the third quarter 2023 investor letter. Headquartered in Chandler, Arizona, Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures provisions for semiconductor products. On October 11, 2023, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $81.23 per share. One-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was 1.50%, and its shares gained 36.66% of their value over the last 52 weeks. Microchip Technology Incorporated (NASDAQ:MCHP) has a market capitalization of $44.216 billion.
Aristotle Capital Value Equity Strategy made the following comment about Microchip Technology Incorporated (NASDAQ:MCHP) in its Q3 2023 investor letter:
“Microchip Technology Incorporated (NASDAQ:MCHP), the microcontroller (MCU) and analog semiconductor producer, was a primary detractor for the period. Despite posting record levels of sales, margins and gross profit, management indicated it expects a challenging near‐ term demand environment due to weakness in China, a slowdown in Europe and early signs of weakness in auto. The company has also accommodated some push‐out requests from customers, which will translate into the coming months. Despite operating in a cyclical industry, Microchip has been able to generate 15+ years of robust FREE cash flow and margins, while lowering its debt (has paid down $6.8 billion of debt over the last 20 quarters, reducing net leverage to 1.29x) and consistently returning money to shareholders. This, we believe, speaks to management’s proven ability to manage the business through economic cycles, while taking advantage of its broad portfolio to continue gaining share in areas including IoT, 5G infrastructure, autonomous driving and data centers.”
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Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the second quarter, which was 43 in the previous quarter.
We discussed Microchip Technology Incorporated (NASDAQ:MCHP) in another article and shared the list of biggest technology companies. In addition, please check out our hedge fund investor letters Q3 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.
