Should You Sell Phillips 66 (PSX)?

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund posted a return of 5.35% net of fees compared to a 7.50% 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 Consumer Discretionary, Industrials, and Energy detracted from relative performance. On the other hand, holdings in Information Technology and Health Care, as well as an underweight exposure in Energy, 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 2023.

Aristotle Atlantic Core Equity Strategy highlighted stocks like Phillips 66 (NYSE:PSX) in the first quarter 2023 investor letter. Headquartered in Houston, Texas, Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics company. On June 20, 2023, Phillips 66 (NYSE:PSX) stock closed at $93.48 per share. One-month return of Phillips 66 (NYSE:PSX) was -2.18%, and its shares gained 3.28% of their value over the last 52 weeks. Phillips 66 (NYSE:PSX) has a market capitalization of $42.894 billion.

Aristotle Atlantic Core Equity Strategy made the following comment about Phillips 66 (NYSE:PSX) in its first quarter 2023 investor letter:

“We sold Phillips 66 (NYSE:PSX) to reduce our exposure to Energy as we continue to see the odds of a recession increase. A recession will negatively impact overall gasoline and diesel demand which could lead to weaker margins, as refinery utilization rates increase following the winter turnarounds.”

Pixabay/Public Domain

Phillips 66 (NYSE:PSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Phillips 66 (NYSE:PSX) at the end of first quarter 2023 which was 36 in the previous quarter.

We discussed Phillips 66 (NYSE:PSX) in another article and shared the list of most profitable energy companies in the world. In addition, please check out our hedge fund investor letters Q1 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.