Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐2.99% gross of fees (‐3.05% net of fees), outperforming the Russell 1000 Value Index’s ‐3.16% return and the S&P 500 Index’s ‐3.27% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like Xylem Inc. (NYSE:XYL) in the third quarter 2023 investor letter. Headquartered in Washington, District of Columbia, Xylem Inc. (NYSE:XYL) designs and manufactures engineered technologies for the water industry. On October 11, 2023, Xylem Inc. (NYSE:XYL) stock closed at $92.37 per share. One-month return of Xylem Inc. (NYSE:XYL) was -4.10%, and its shares gained 4.56% of their value over the last 52 weeks. Xylem Inc. (NYSE:XYL) has a market capitalization of $22.245 billion.
Aristotle Capital Value Equity Strategy made the following comment about Xylem Inc. (NYSE:XYL) in its Q3 2023 investor letter:
Xylem Inc. (NYSE:XYL), the water equipment and services supplier, was the largest detractor for the quarter. After closing the transformational acquisition of Evoqua in May 2023, long‐time CEO Patrick Decker announced he would retire at the end of 2023 and COO Matthew Pine will step into the top position. Concurrently, Xylem announced a change in its CFO, with William Grogan joining from IDEX Corporation where he served as CFO since 2017. While C‐suite turnover is not desirable, it is inevitable. Moreover, we see the company’s succession planning as well thought out and well executed. Meanwhile, Xylem reported double‐digit increases in revenue across all segments and end markets amid strong global demand from public utilities, as well as industrial, commercial and residential clients, that seek solutions to treat, test, transport and preserve water. We believe Xylem’s portfolio of highly differentiated pumps, recognized for their quality and critical uses, as well as the company’s ability to cross‐sell and link other products such as sensors and smart meters, will make it a one‐stop shop for utilities and protect the company from pure price competition. In our opinion, long‐term trends, such as water scarcity and the need to replace aging water infrastructure, create strong underlying demand for Xylem’s products through various parts of the economic cycle. We will evaluate the announced management transitions and will closely monitor the company’s ongoing integration of Evoqua.
A technician wearing a protective suit in a water treatment plant. Editorial photo for a financial news article. 8k. –ar 16:9
Xylem Inc. (NYSE:XYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Xylem Inc. (NYSE:XYL) at the end of the second quarter, which was 37 in the previous quarter.
We discussed Xylem Inc. (NYSE:XYL) in another article and shared the list of best manufacturing stocks to buy. 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.
