Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund posted a return of -4.92% gross of fees compared to -4.88% return for the S&P 500 Index. The fund’s underperformance in the quarter was primarily because of the stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Atlantic highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in the Q3 2022 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a software company that provides enterprise cloud computing solutions. On November 23, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $409.37 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -1.52% and its shares lost 36.95% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $82.693 billion.
Aristotle Atlantic made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:
“Underperformance in the third quarter can be attributed to ServiceNow, Inc. (NYSE:NOW)’s slight miss on the second quarter earnings and guidance that was lower than expected for its third quarter outlook. The company is facing headwinds from the weaker macroeconomic conditions and a tempered outlook resulting from elongated sales cycles and an overall slowing software spending environment. These worsening conditions were highlighted by many software companies during the second quarter earnings season. We expect this to be temporary for ServiceNow where the long-term thesis of the company’s platform strategy and relevance to digital transformation strategies remains intact. The stock was also likely impacted by the rapid increase in interest rates during the third quarter and the resulting contraction of multiples on high-growth software stocks.”
ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the third quarter, which was 99 in the previous quarter.
We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared Lakehouse Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
