Do You Have Conviction in the New Corporate Structure of S&P Global (SPGI)?

Wedgewood Partners, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Wedgewood Composite’s Net return was 9.8% compared to the Standard & Poor’s Index’s 7.5%, Russell 1000 Growth Index’s 14.4%, and Russell 1000 Value Index’s 1.0% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Wedgewood Partners highlighted stocks S&P Global Inc. (NYSE:SPGI) in the first quarter 2023 investor letter. Headquartered in New York, New York, S&P Global Inc. (NYSE:SPGI) is a credit rating, benchmarks, analytics, and workflow solutions provider. On April 14, 2023, S&P Global Inc. (NYSE:SPGI) stock closed at $347.86 per share. One-month return of S&P Global Inc. (NYSE:SPGI) was 3.97%, and its shares lost 10.93% of their value over the last 52 weeks. S&P Global Inc. (NYSE:SPGI) has a market capitalization of $114.08 billion.

Wedgewood Partners made the following comment about S&P Global Inc. (NYSE:SPGI) in its Q1 2023 investor letter:

S&P Global Inc. (NYSE:SPGI) was a bottom contributor to portfolio performance during the quarter. Adjusted revenue declined -5%, mostly driven by the decline in ratings revenues which is lapping strong one-year and two-year comparisons. During 2022, the Company closed on its acquisition of IHS Markit which has diversified its revenue streams into new, but high-margin business lines. The Company’s new corporate structure should allow for attractive growth, even if fixed income issuance trends stay at stall-speeds for the next few quarters.”

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S&P Global Inc. (NYSE:SPGI) is in 27th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held S&P Global Inc. (NYSE:SPGI) at the end of the fourth quarter which was 90 in the previous quarter.

We discussed S&P Global Inc. (NYSE:SPGI) in another article and shared the list of best financial services stocks to invest in. In addition, please check out our hedge fund investor letters Q1 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.