Ensemble Capital Management, an investment management company, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, the strategy declined by 5.68% compared to the S&P 500’s 3.27% decline. The underperformance of the fund was driven by large declines in two holdings that have recently elected activist shareholders to their boards. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Ensemble Capital Management highlighted stocks like Illumina, Inc. (NASDAQ:ILMN) in the third quarter 2023 investor letter. Headquartered in San Diego, California, Illumina, Inc. (NASDAQ:ILMN) is a life science tools and integrated systems manufacturer. On October 31, 2023, Illumina, Inc. (NASDAQ:ILMN) stock closed at $109.42 per share. One-month return of Illumina, Inc. (NASDAQ:ILMN) was -20.89%, and its shares lost 48.14% of their value over the last 52 weeks. Illumina, Inc. (NASDAQ:ILMN) has a market capitalization of $17.321 billion.
Ensemble Capital Management made the following comment about Illumina, Inc. (NASDAQ:ILMN) in its Q3 2023 investor letter:
“Illumina, Inc. (NASDAQ:ILMN) (-26.78%): In August, Illumina reduced their full year guidance, something that was not unexpected as life science tool providing companies have mostly all seen a slowdown in demand as customers have sought to cut costs and deplete existing inventories due to macroeconomic concerns and the bumpy recovery from COVID. The cut in guidance did not initially impact the stock, with it rising slightly on the day. But subsequently, investor impatience with the company’s GRAIL related issues (a company they bought, which regulators are close to requiring them to sell back off) seems to have reached a crescendo with the stock trading down steeply as even bullish investors await a resolution to the regulatory issue.”
A scientist performing a blood test on a patient using life sciences tools & services.
Illumina, Inc. (NASDAQ:ILMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Illumina, Inc. (NASDAQ:ILMN) at the end of second quarter which was 44 in the previous quarter.
We previously discussed Illumina, Inc. (NASDAQ:ILMN) in another article and shared the list of best long-term stocks to buy for high returns. In addition, please check out our hedge fund investor letters Q3 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.
