Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Aristotle Atlantic’s Focus Growth strategy posted a return of 2.66% net of fees compared to a 2.20% return for the Russell 1000 Growth Index. Stock selection and allocation led the strategy to outperform in the quarter relative to its benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Atlantic Focus Growth Strategy highlighted stocks like KLA Corporation (NASDAQ:KLAC) in the fourth quarter 2022 investor letter. Headquartered in Milpitas, California, KLA Corporation (NASDAQ:KLAC) is a manufacturer and supplier of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries. On April 5, 2023, KLA Corporation (NASDAQ:KLAC) stock closed at $381.61 per share. One-month return of KLA Corporation (NASDAQ:KLAC) was -1.50%, and its shares gained 10.85% of their value over the last 52 weeks. KLA Corporation (NASDAQ:KLAC) has a market capitalization of $52.845 billion.
Aristotle Atlantic Focus Growth Strategy made the following comment about KLA Corporation (NASDAQ:KLAC) in its Q4 2022 investor letter:
“KLA Corporation (NASDAQ:KLAC) is a supplier of process control equipment and data analytics products for a broad range of industries, including semiconductors, printed circuit boards (PCB) and displays. It provides solutions for manufacturing and testing wafers and reticles, integrated circuits (IC or chip), packaging, light-emitting diodes (LED), power devices, compound semiconductor devices, microelectromechanical systems (MEMS), data storage, PCBs, flat and flexible panel displays, and general materials research, as well as providing contracted and comprehensive installation and maintenance services across its installed base. Customers in international markets account for about 90% of the company’s revenue.
We see a unique opportunity in KLA to benefit from the increasing complexity of semiconductor wafer manufacturing through its leading position in process technology and wafer inspection. We believe Wafer Fab Equipment (WFE) spending will continue to rise over the next decade, as semiconductor capital intensity remains elevated and as semiconductors continue to account for a larger share of the global economy due to the above average growth of IoT devices, auto electrification, data center and cloud computing, and mobile communication/computing. We see the stock as an attractive investment opportunity, as investor expectations for 2023 have been reset at lower levels following WFE capital expenditures (CapEx) cuts by foundries and semiconductor companies.”
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KLA Corporation (NASDAQ:KLAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held KLA Corporation (NASDAQ:KLAC) at the end of the fourth quarter which was 40 in the previous quarter.
We discussed KLA Corporation (NASDAQ:KLAC) in another article and shared the list of best augmented reality stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.