Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets started the year on a negative note, with the MSCI ACWI Index down 1.32% in Q1. Meanwhile, the Bloomberg Global Aggregate Bond Index rose 2.64% as global fixed income gained ground. Value stocks outperformed growth stocks, with the MSCI ACWI Value Index surpassing the MSCI ACWI Growth Index by 11.59%. Aristotle Capital International Equity returned 3.62% gross of fees (3.50% net of fees), underperforming the MSCI EAFE Index, which returned 6.86%, and the MSCI ACWI ex USA Index, which returned 5.23%. 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 Capital International Equity Strategy highlighted stocks such as Accenture plc (NYSE:ACN). Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was -6.05%, and its shares lost 2.34% of their value over the last 52 weeks. On June 27, 2025, Accenture plc (NYSE:ACN) stock closed at $295.46 per share, with a market capitalization of $184.028 billion.
Aristotle Capital International Equity Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q1 2025 investor letter:
“Accenture plc (NYSE:ACN), the global IT services and consulting firm, was one of the largest detractors during the period. The company reported revenue at the top end of its guided range, supported by solid booking, particularly in large-scale transformational projects from major corporate clients. Despite these results, shares declined as investor sentiment was impacted by continued client caution amid heightened global uncertainty, including concerns around tariffs and consumer sentiment, as well as the U.S. administration’s initiative to streamline federal operations, which could result in canceled or delayed government contracts. We believe Accenture is well-positioned to support the federal government’s efficiency goals through its expertise and proven track record in delivering innovative, cost-effective solutions. Accenture has also continued to see traction in emerging areas such as generative AI, securing $1.4 billion in new bookings and generating approximately $600 million in related revenue during the quarter. Short-term fluctuations in consulting demand are not unusual, and we remain confident that Accenture’s global scale and deep expertise make it well-positioned to continue to provide solutions and deepen its partnerships with many of the world’s largest companies as they continue to implement increasingly sophisticated technologies.”
A team of data experts gathered around a computer monitor analyzing customer data.
Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter, which was 79 in the previous quarter. In the first quarter of 2025, Accenture plc (NYSE:ACN) reported a 7% growth in local currency, achieving revenue of $17.7 billion, exceeding the guidance range. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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 undervalued AI stock set for massive gains.
In another article, we covered Accenture plc (NYSE:ACN) and shared the list of best fundamental stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
