Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market continued its rise to new record highs, with the S&P 500 Index increasing by 5.89% during the period. Aristotle Atlantic’s Focus Growth strategy returned 2.84% gross of fees (2.82% net of fees) in the quarter underperforming the Russell 1000 Growth Index’s 3.19% total return. The relative outperformance was due to both allocation effects and security selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Focus Growth Strategy highlighted stocks like Synopsys, Inc. (NASDAQ:SNPS), in the third quarter 2024 investor letter. Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. The one-month return of Synopsys, Inc. (NASDAQ:SNPS) was 4.27%, and its shares gained 6.66% of their value over the last 52 weeks. On October 31, 2024, Synopsys, Inc. (NASDAQ:SNPS) stock closed at $513.61 per share with a market capitalization of $79.933 billion.
Aristotle Focus Growth Strategy stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter:
“Synopsys, Inc. (NASDAQ:SNPS) detracted from performance in the third quarter as the stock was part of the general investor pullback in AI-related semiconductor names due to concerns about overall AI market growth in the near-term and profitability of the massive capex investments being made in AI infrastructure. The company continues to execute well on its AI-enhanced product suite and Synopsys IP and Tools continue to be an integral part of the semiconductor design and manufacturing supply chain. As semiconductor companies and enterprises continue to rely on increasingly complex semiconductors in their technology stack, we see Synopsys as a key beneficiary of the increased design and manufacturing spend.”
A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.
Synopsys, Inc. (NASDAQ:SNPS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the second quarter which was 64 in the previous quarter. Synopsys, Inc. (NASDAQ:SNPS) generated total revenue of $1.53 billion in the fiscal third quarter, up 13% year-over-year. While we acknowledge the potential of Synopsys, Inc. (NASDAQ:SNPS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Synopsys, Inc. (NASDAQ:SNPS) and shared the list of stocks AI and semiconductor stocks that fund managers are buying and selling according to Bank of America’s data. In addition, please check out our hedge fund investor letters Q3 2024 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.