Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market continued its rise to new record highs, with the S&P 500 Index increasing by 5.89% during this period. In the third quarter, Aristotle Atlantic’s Large Cap Growth Strategy delivered 1.26% gross of fees (1.11% net of fees) underperforming the Russell 1000 Growth Index’s return of 3.19%. Security selection led the portfolio to underperform in the quarter. Security selection in Information Technology and Health Care detracted the most from the relative performance while security selection in Consumer Discretionary and Real Estate detracted the least. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Large Cap Growth Strategy highlighted stocks like ServiceNow, Inc. (NYSE:NOW), in the third quarter 2024 investor letter. ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for digital businesses. The one-month return of ServiceNow, Inc. (NYSE:NOW) was 5.28%, and its shares gained 60.46% of their value over the last 52 weeks. On November 6, 2024, ServiceNow, Inc. (NYSE:NOW) stock closed at $994.48 per share with a market capitalization of $205.178 billion.
Aristotle Large Cap Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q3 2024 investor letter:
“ServiceNow, Inc. (NYSE:NOW) contributed to performance in the third quarter, as the company reported what we consider to be solid second quarter earnings results that continue to highlight ongoing traction of its company’s product platform and improving momentum for the GenAI product lines. The company’s guidance for third quarter current remaining performance obligations (cRPO) was also ahead of consensus, which supports the strength of the company’s product platform in a software spending environment that continues to see headwinds from macroeconomic factors and budgets shifting to GenAI products.”
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter which was 90 in the previous quarter. In Q3 2024, ServiceNow, Inc.’s (NYSE:NOW) subscription revenue increased 22.5% year-over-year to $2.715 billion. While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) 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 ServiceNow, Inc. (NYSE:NOW) and shared the list of best innovative stocks to invest in according to hedge funds. ServiceNow, Inc. (NYSE:NOW) contributed to the performance of Ithaka US Growth Strategy in Q3 2024. In addition, please check out our hedge fund investor letters Q3 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.