Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index fell 4.27% in the first quarter of 2025, marking a sluggish start to the year for the U.S. equities market. On the other hand, bonds offered a measure of stability, as the Bloomberg U.S. Aggregate Bond Index rose 2.78%. Aristotle Atlantic’s Core Equity strategy returned -5.90% gross of fees (-5.99% net of fees) in the quarter, underperforming the S&P 500 Index’s -4.27% total return. The relative underperformance was due to a mix of security selection and allocation effects. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Aristotle Atlantic Core Equity Strategy highlighted stocks such as Analog Devices, Inc. (NASDAQ:ADI). Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystem products. The one-month return of Analog Devices, Inc. (NASDAQ:ADI) was -15.21%, and its shares lost 9.16% of their value over the last 52 weeks. On April 22, 2025, Analog Devices, Inc. (NASDAQ:ADI) stock closed at $178.50 per share with a market capitalization of $88.532 billion.
Aristotle Atlantic Core Equity Strategy stated the following regarding Analog Devices, Inc. (NASDAQ:ADI) in its Q1 2025 investor letter:
“Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor leader dedicated to solving customers’ most complex engineering challenges. The company delivers innovations that connect technology to human breakthroughs and play a critical role at the intersection of the physical and digital worlds by providing the building blocks to sense, measure, interpret, connect and power. Analog designs, manufactures, tests and markets a broad portfolio of solutions. These solutions include integrated circuits, software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies. Its comprehensive product portfolio, deep domain expertise and advanced manufacturing span high-performance precision and high-speed mixed-signal, power management and processing technologies, including data converters, amplifiers, power management, radio frequency, integrated circuits, edge processors and other sensors. The company’s customers include original equipment manufacturers and customers that build electronic subsystems for integration into larger systems.
We see the company’s analog products providing exposure to high-growth trends, including automotive electrification and driver assistance systems, factory intelligence and automation, the Intelligent Edge, Internet of Things device proliferation and sustainable energy. We expect the company to return excess free cash flow, benefiting shareholders.”
A technician working on power management in a semiconductor factory.
Analog Devices, Inc. (NASDAQ:ADI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Our database shows that 64 hedge fund portfolios held Analog Devices, Inc. (NASDAQ:ADI) at the end of the fourth quarter, compared to 63 in the third quarter. Analog Devices, Inc.’s (NASDAQ:ADI) first-quarter revenue of $2.42 billion exceeded the midpoint of the guidance, reflecting a 1% decline sequentially and a 4% year-over-year decline. While we acknowledge the potential of Analog Devices, Inc. (NASDAQ:ADI) 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 covered Analog Devices, Inc. (NASDAQ:ADI) and shared the list of best AI stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 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.