Is Sonos (SONO) a Smart Long-Term Investment?

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Small/Mid Cap Equity Composite Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, the Aristotle Small/Mid Cap Equity Composite generated a total return of -4.38% gross of fees (-4.52% net of fees), outperforming the -5.82% total return of the Russell 2500 Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Capital Management Small/Mid Cap Equity Fund mentioned Sonos, Inc. (NASDAQ:SONO) and explained its insights for the company. Founded in 2002, Sonos, Inc. (NASDAQ:SONO) is a Santa Barbara, California-based audio products developer with a $2.8 billion market capitalization. Sonos, Inc. (NASDAQ:SONO) delivered a -25.81% return since the beginning of the year, while its 12-month returns are down by -40.24%. The stock closed at $22.11 per share on May 27, 2022.

Here is what Aristotle Capital Management Small Cap Equity has to say about Sonos, Inc. (NASDAQ:SONO) in its Q1 2022 investor letter:

“Sonos (NASDAQ:SONO), a consumer electronics company with proprietary multi-room smart speaker technology, was added to the portfolio on the belief that strong consumer demand for the company’s differentiated product offering plus a multi-year pipeline of upcoming new product introductions are expected to drive shareholder value for the next several years.”

Photo by Charles Deluvio on Unsplash

Our calculations show that Sonos, Inc. (NASDAQ:SONO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sonos, Inc. (NASDAQ:SONO) was in 30 hedge fund portfolios at the end of the first quarter of 2022, compared to 45 funds in the previous quarter. Sonos, Inc. (NASDAQ:SONO) delivered a -18.92% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.