Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market finished the year strongly, with the S&P 500 Index rising 2.41% in Q4. The Bloomberg U.S. Aggregate Bond Index, on the other hand, fell 3.06% during the quarter. Aristotle Atlantic’s Focus Growth strategy returned 5.05% gross of fees (5.03% net of fees) in the quarter underperforming the Russell 1000 Growth Index’s 7.07% total return. A combination of allocation effects and security selection drove the underperformance of the portfolio in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Atlantic Focus Growth Strategy highlighted stocks like Trane Technologies plc (NYSE:TT) in the Q4 2024 investor letter. Trane Technologies plc (NYSE:TT) provides solutions for heating, ventilation, air conditioning, and transport refrigeration. The one-month return of Trane Technologies plc (NYSE:TT) was -5.12%, and its shares gained 33.41% of their value over the last 52 weeks. On February 3, 2024, Trane Technologies plc (NYSE:TT) stock closed at $360.52 per share with a market capitalization of $81.126 billion.
Aristotle Atlantic Focus Growth Strategy stated the following regarding Trane Technologies plc (NYSE:TT) in its Q4 2024 investor letter:
“Trane Technologies plc (NYSE:TT) detracted from performance in the fourth quarter of 2024. The company reported better than expected revenue and earnings growth at the end of October. The stock declined in December despite two investor conferences early in the month where the company reiterated expectations that current strong trends in commercial HVAC will continue into 2025, the service business is continuing to experience low double-digit growth, and the residential business is expected to improve from a lull in 2024. Higher interest rates have been a drag on industrial stock performance generally in December. Strength in the US dollar in 2025 will impact large cap companies like Trane, which have international exposure.”
A worker inspecting a newly installed heating unit in a modern home.
Trane Technologies plc (NYSE:TT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Trane Technologies plc (NYSE:TT) at the end of the third quarter which was 57 in the previous quarter. While we acknowledge the potential of Trane Technologies plc (NYSE:TT) 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 Trane Technologies plc (NYSE:TT) and shared the list of AI electricity, infrastructure stocks are crashing due to DeepSeek news. 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.