NZS Capital, LLC, an investment management company, released its “NZS Growth Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The flagship strategy was up 16% (net) compared to 11% for the Morningstar Global Target Market Exposure (NR) index. An increasing consensus on rate cuts in 2024 created a positive backdrop for growth equities. The Magnificent Seven, who had outperformed the market for three quarters, fared similarly in the fourth quarter, benefiting active managers who avoided chasing momentum bets. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
NZS Capital featured stocks such as Trane Technologies plc (NYSE:TT) in the fourth quarter 2023 investor letter. Headquartered in Swords, Ireland, Trane Technologies plc (NYSE:TT) provides solutions for heating, ventilation, air conditioning, and transport refrigeration. On February 9, 2024, Trane Technologies plc (NYSE:TT) stock closed at $275.44 per share. One-month return of Trane Technologies plc (NYSE:TT) was 11.90%, and its shares gained 47.58% of their value over the last 52 weeks. Trane Technologies plc (NYSE:TT) has a market capitalization of $62.545 billion.
NZS Capital stated the following regarding Trane Technologies plc (NYSE:TT) in its fourth quarter 2023 investor letter:
“We had no major shifts in our portfolio positioning, but what changes we made stemmed from stock-specific opportunities. We remain highly exposed to information technology given our focus on innovation and disruption, but we are increasingly finding opportunities in other sectors. For example, we shifted Trane Technologies plc (NYSE:TT) into our resiliency sleeve. Trane, which we discuss in greater detail below, is a leader in HVAC, an attractive industry aligned with decarbonization.
Our disciplined approach considers two types of stocks: resilient and optional. In both cases, we consider a broad range of outcomes. Rather than making one prediction and investing behind it, we consider the range of scenarios that provide a favorable return. A stock with a broader range of outcomes, and thus more uncertainty, is considered optional and remains less than 1.5% typically. A company with a narrower range of outcomes gives us more confidence and can fit in the resilient sleeve, which typically includes positions sizes from 2.5% positions to 6% of the portfolio
In the fourth quarter, we promoted Trane Technologies to resilience. Trane is a leading participant in the HVAC and Transport Refrigeration industries globally. Roughly, 60% of Trane’s business is commercial HVAC, 20% is North American residential HVAC, and 20% is transportation refrigeration units…” (Click here to read the full text)
An engineer inspecting a HVAC system, revealing the complexity of the products.
Trane Technologies plc (NYSE:TT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Trane Technologies plc (NYSE:TT) at the end of third quarter which was 35 in the previous quarter.
We discussed Trane Technologies plc (NYSE:TT) in another article and shared ClearBridge Sustainability Leaders Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best ETF Trading Strategies for Beginners
- 12 Best NASDAQ Stocks To Buy In 2024
- 25 Fastest-Growing Cities in the South
Disclosure: None. This article is originally published at Insider Monkey.
