Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. stock market wrapped up the year positively, as the S&P 500 Index increased by 2.41% in the quarter while the Bloomberg U.S. Aggregate Bond Index declined, falling 3.06% for the quarter. In the fourth quarter, Aristotle Atlantic’s Large Cap Growth Strategy delivered 6.29% gross of fees (6.15% net of fees) underperforming the Russell 1000 Growth Index’s 7.07% return. Both Security selection and allocation effects led the portfolio to underperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Atlantic Large Cap Growth Strategy highlighted stocks like Amphenol Corporation (NYSE:APH), in the fourth quarter 2024 investor letter. Amphenol Corporation (NYSE:APH) designs and manufactures electrical, electronic, and fiber optic connectors. The one-month return of Amphenol Corporation (NYSE:APH) was -1.88%, and its shares gained 36.46% of their value over the last 52 weeks. On February 3, 2024, Amphenol Corporation (NYSE:APH) stock closed at $70.12 per share with a market capitalization of $84.537 billion.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Amphenol Corporation (NYSE:APH) in its Q4 2024 investor letter:
“Amphenol Corporation (NYSE:APH) is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems; antennas; sensors and sensor-based products; and coaxial and high-speed specialty cable. The company estimates, based on recent reports of industry analysts, that worldwide sales of interconnect and sensor-related products were approximately $235 billion in 2023. The company aligns its businesses into three reportable business segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company sells products to customers in a diversified set of end markets.
We see Amphenol benefiting from increased spending by cloud service providers, hyperscalers and enterprises on new datacenter architectures that enable AI computing technologies. The increased interconnect content that AI-enabled datacenters require, we believe, will underpin a double-digit sales growth outlook for the company over the next few years. The company has attractive end-market diversification, with exposure to both short-cycle and long-cycle, and no single end-market vertical represents more than 25% of revenues. Additionally, Amphenol has strong free cash flow generation, which has supported a successful M&A strategy that has driven enhanced advancement.”
A team of technicians assembling a complex electrical connector in a factory environment.
Amphenol Corporation (NYSE:APH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the third quarter which was 72 in the previous quarter. In 2024, the Amphenol Corporation’s (NYSE:APH) sales reached $15.223 billion, reflecting a 21% increase in both US dollars and local currencies, as well as a 13% rise organically compared to 2023. In the fourth quarter 2024, Amphenol Corporation’s (NYSE:APH) sales increased 30% in US dollars and local currencies to $4.318 billion. While we acknowledge the potential of Amphenol Corporation (NYSE:APH) 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 Amphenol Corporation (NYSE:APH) and shared Coatue’s most important AI stocks. 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.