Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The composite returned 7.63% gross of fees (7.56% net of fees) in the first quarter trailing the 8.99% return of the Russell 1000 Value Index and the 10.56% return of the S&P 500 Index. Security selection and allocation effects led the composite to underperform in the quarter relative to the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Capital’s Value Equity Strategy featured stocks like Xcel Energy Inc. (NASDAQ:XEL) in the Q1 2024 investor letter. Headquartered in Minneapolis, Minnesota, Xcel Energy Inc. (NASDAQ:XEL) engages in the generation, purchasing, transmission, distribution, and sale of electricity. On April 12, 2024, Xcel Energy Inc. (NASDAQ:XEL) stock closed at $53.17 per share. One-month return of Xcel Energy Inc. (NASDAQ:XEL) was 2.27%, and its shares lost 24.19% of their value over the last 52 weeks. Xcel Energy Inc. (NASDAQ:XEL) has a market capitalization of $29.534 billion.
Aristotle Capital’s Value Equity Strategy stated the following regarding Xcel Energy Inc. (NASDAQ:XEL) in its first quarter 2024 investor letter:
“Xcel Energy Inc. (NASDAQ:XEL), one of the largest renewable energy owners among regulated utilities, was a primary detractor during the period. Shares fell as the company’s facilities appear to have been involved in an ignition of the largest wildfire in Texas state history. As a result, insurance companies have begun filing lawsuits claiming Xcel should be held liable for damages related to the more than one million acres burned. Though the magnitude and likelihood of settlements are difficult to quantify, we believe potential payouts would be meaningfully less than the over $5 billion in market value the company lost in the days following the news. We will continue to closely monitor the situation and its impact on the company, as a full investigation is still underway. Over the long term, our conviction remains that Xcel is well positioned to benefit from increased demand for clean energy, as its service territories have what we believe to be some of the best wind and solar resources in the country.”
A vast expanse of solar panels stretching as far as the eye can see.
Xcel Energy Inc. (NASDAQ:XEL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Xcel Energy Inc. (NASDAQ:XEL) was held by 26 hedge fund portfolios, compared to 25 in the previous quarter, according to our database.
We previously discussed Xcel Energy Inc. (NASDAQ:XEL) in another article, where we shared the list of most undervalued renewable energy stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 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.
