Renaissance Investment Management, an investment management company, released its “Large Cap Growth Strategy” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.46% (net) compared to a -3.60% return for the Russell 1000 Growth Index and -4.88% return for the S&P 500 Index. The focus on high-quality stocks led the strategy to outperform the indexes in the quarter. The Consumer Discretionary sector significantly contributed to the strategy’s performance while the Technology sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Renaissance Investment highlighted stocks like Zoetis Inc. (NYSE:ZTS) in its Q3 2022 investor letter. Headquartered in Parsippany, New Jersey, Zoetis Inc. (NYSE:ZTS) is an animal health company. On December 27, 2022, Zoetis Inc. (NYSE:ZTS) stock closed at $145.30 per share. One-month return of Zoetis Inc. (NYSE:ZTS) was -5.74%, and its shares lost 41.18% of their value over the last 52 weeks. Zoetis Inc. (NYSE:ZTS) has a market capitalization of $67.72 billion.
Renaissance Investment made the following comment about Zoetis Inc. (NYSE:ZTS) in its Q3 2022 investor letter:
“We exited our position in Zoetis Inc. (NYSE:ZTS) in September. From a fundamental perspective, we believe revenue growth will begin to decelerate given multiple headwinds facing the company. Zoetis had benefited from a spike in pet ownership during the COVID-19 lockdowns, but the unsustainable bump in growth will now result in tougher growth comparisons. In addition, we are seeing evidence from other companies in the companion animal market that elevated inflation and recessionary fears are causing consumers to pull back on discretionary pet spending, resulting in fewer clinical veterinarian visits.”
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Zoetis Inc. (NYSE:ZTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of the third quarter, which was 62 in the previous quarter.
We discussed Zoetis Inc. (NYSE:ZTS) in another article and shared the best pet stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 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.