Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The U.S. equity market rebounded in 2023 following a turbulent year in 2022, with the S&P 500 Index posting a 26.29% annual return. In the fourth quarter, the fund posted a return of 14.43% gross of fees (14.36% net of fees) compared to a 9.50% return for the Russell 1000 Value Index and an 11.69% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Value Equity Strategy featured stocks such as Corteva, Inc. (NYSE:CTVA) in the fourth quarter 2023 investor letter. Headquartered in Indianapolis, Indiana, Corteva, Inc. (NYSE:CTVA) engages in the agriculture business that provides seed and crop protection solutions. On January 11, 2024, Corteva, Inc. (NYSE:CTVA) stock closed at $46.03 per share. One-month return of Corteva, Inc. (NYSE:CTVA) was -1.10%, and its shares lost 26.45% of their value over the last 52 weeks. Corteva, Inc. (NYSE:CTVA) has a market capitalization of $32.439 billion.
Aristotle Value Equity Strategy stated the following regarding Corteva, Inc. (NYSE:CTVA) in its fourth quarter 2023 investor letter:
“Corteva, Inc. (NYSE:CTVA), the seed and crop protection company, was the largest detractor during the quarter. Following robust orders during the 2020-2022 period, customer destocking persisted throughout 2023, particularly in Brazil, causing Corteva to lower 2023 revenue and profit guidance to -2% and -3% year-over-year, respectively. While the crop protection business appears to be, in our view, at or near a cyclical bottom, the seed business remained resilient, with +14% year-over-year price/mix effects more than offsetting the 12% fall in volumes during the third quarter. We are encouraged by management’s actions, including further optimization of the crop protection business and Corteva’s FREE cash flow generation during this challenging period. Despite cyclical headwinds, the company continues to execute on catalysts we previously identified, including margin expansion via improved pricing and product mix, as well as reduced royalty expenses.”
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Corteva, Inc. (NYSE:CTVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Corteva, Inc. (NYSE:CTVA) at the end of third quarter which was 46 in the previous quarter.
We discussed Corteva, Inc. (NYSE:CTVA) in another article and shared the list of best materials dividend stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.
