Should You Sell PepsiCo (PEP)?

Aristotle Atlantic Partners, LLC, an investment management company, released its “Core Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 12.95% gross of fees (12.84% net of fees), outperforming the S&P 500 Index, which recorded a total return of 11.69%. Both security selection and allocation effects led the strategy to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Aristotle Atlantic Core Equity Strategy featured stocks like PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2023 investor letter. Headquartered in Purchase, New York, PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, and distributes various beverages and convenient foods. On March 1, 2024, PepsiCo, Inc. (NASDAQ:PEP) stock closed at $164.59 per share. One-month return of PepsiCo, Inc. (NASDAQ:PEP) was -3.70%, and its shares lost 5.14% of their value over the last 52 weeks. PepsiCo, Inc. (NASDAQ:PEP) has a market capitalization of $226.217 billion.

Aristotle Atlantic Core Equity Strategy stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its fourth quarter 2023 investor letter:

“We sold PepsiCo, Inc. (NASDAQ:PEP) based on our belief that the inflation and interest rate cycle has peaked, and the company may have difficulty maintaining the recent organic growth trends which were driven mainly by price increases. Furthermore, the market appears to be shifting away from defensive names and into a more cyclical positioning which could cause PepsiCo to lag.”

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

PepsiCo, Inc. (NASDAQ:PEP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, PepsiCo, Inc. (NASDAQ:PEP) was held by 64 hedge fund portfolios, down from 65 in the previous quarter, according to our database.

We discussed PepsiCo, Inc. (NASDAQ:PEP) in another article and shared the list of fastest growing energy drink stocks in the U.S. In addition, please check out our hedge fund investor letters Q4 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.