Yahoo Finance Aristotle Atlantic’s Focus Growth Composite Sold Tesla (TSLA) due to Deteriorating Fundamentals
Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The market continued its rally in the first quarter and the S&P 500 Index rose 10.56% during the period. Aristotle Atlantic’s Focus Growth strategy returned 10.42% gross of fees (10.40% net of fees), in the first quarter underperforming the Russell 1000 Growth Index’s 11.41% total return. The relative underperformance was due to both allocation effects and security selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Aristotle Atlantic Focus Growth Strategy highlighted stocks like Tesla, Inc. (NASDAQ:TSLA), in the first quarter 2024 investor letter. Tesla, Inc. (NASDAQ:TSLA), with a market capitalization of $565.987 billion, designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. One-month return of Tesla, Inc. (NASDAQ:TSLA) was 5.37%, and its shares lost 8.20% of their value over the last 52 weeks. On May 23, 2024, Tesla, Inc. (NASDAQ:TSLA) stock closed at $173.74 per share.
Aristotle Atlantic Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its first quarter 2024 investor letter:
"We sold Tesla, Inc. (NASDAQ:TSLA) due to deteriorating fundamentals, and there have been significant negative earnings revisions over the past year. Tesla has announced several price cuts to its vehicles and has underscored competition in electric vehicles (EVs) globally. China seems especially competitive. More U.S. EV offerings are expected this year. The Full-Self Driving Capability feature is controversial, has regulatory and litigation risk, and has been chronically late. Elon Musk is trying to gain additional voting shares in Tesla stock. This could present governance issues where his voting share could exceed his economic share of the company."
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Tesla, Inc.'s (NASDAQ:TSLA) trailing 12 months revenue is $94.75 billion and its year over year quarterly revenue growth rate is -8.70%. In the first quarter the company had a negative free cash flow of $2.5 billion. (See the details here)
Tesla, Inc. (NASDAQ:TSLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter which was 82 in the previous quarter.
In another article, we discussed Tesla, Inc. (NASDAQ:TSLA) and shared the list of best ARK stocks to buy. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
