Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the U.S. equity market reached a record high. Aristotle Atlantic’s Core Equity strategy returned 5.61% gross of fees (5.51% net of fees) in the quarter outperforming the S&P 500 Index’s 4.28% total return. The relative outperformance was due to security selection. Security selection in Information Technology and Health Care contributed the most to relative performance while Consumer Staples and Consumer Discretionary detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Aristotle Atlantic Core Equity Strategy highlighted stocks like Amphenol Corporation (NYSE:APH), in the second 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 -2.53%, and its shares gained 57.13% of their value over the last 52 weeks. On July 22, 2024, Amphenol Corporation (NYSE:APH) stock closed at $66.24 per share with a market capitalization of $79.568 billion.
Aristotle Atlantic Core Equity Strategy stated the following regarding Amphenol Corporation (NYSE:APH) in its Q2 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 data center architectures that enable AI computing technologies. The increased interconnect content that AI-enabled data centers 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 technician wearing protective glasses installing optical fibers and cables.
Amphenol Corporation (NYSE:APH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Amphenol Corporation (NYSE:APH) was held by 51 hedge fund portfolios at the end of the first quarter, compared to 41 in the previous quarter, according to our database. In the first quarter, Amphenol Corporation (NYSE:APH) reported $3.256 billion in sales, up 9% from Q1 2023. 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 the list of most profitable stocks of the last 20 years. In addition, please check out our hedge fund investor letters Q2 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.