Here’s Why Aristotle Capital Small Cap Equity Strategy Sold Cerence (CRNC)
Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund delivered a return of -1.56% net of fees (-1.41% gross of fees) outperforming the Russell 2000 Index’s -3.28% total return. Security selection drove the outperformance while allocation effects also contributed. For more information on the fund’s best picks in 2024, please check its top five holdings.
Aristotle Small Cap Equity Strategy highlighted stocks like Cerence Inc. (NASDAQ:CRNC) in its Q2 2024 investor letter. Cerence Inc. (NASDAQ:CRNC) offers AI-powered virtual assistants for mobility/transportation. The one-month return of Cerence Inc. (NASDAQ:CRNC) was 15.14%, and its shares lost 88.24% of their value over the last 52 weeks. On July 26, 2024, Cerence Inc. (NASDAQ:CRNC) stock closed at $3.27 per share with a market capitalization of $136.611 million.
Aristotle Small Cap Equity Strategy stated the following regarding Cerence Inc. (NASDAQ:CRNC) in its Q2 2024 investor letter:
"Cerence Inc. (NASDAQ:CRNC), a developer of voice-connected technology for the transportation market, declined after guiding down the full-year revenue forecast along with the CFO's departure. As discussed later, the investment team decided to sell the full position during the quarter. Cerence (CRNC), a provider of speech recognition and voice technologies for automotive applications was sold as the company embarked on a strategic shift to capitalize on the AI opportunity disrupting the financial progress we were anticipating."
A man with an AI powered virtual assistant, demonstrating the coexistence of the two.
Cerence Inc. (NASDAQ:CRNC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Cerence Inc. (NASDAQ:CRNC) at the end of the first quarter which was 13 in the previous quarter. While we acknowledge the potential of Cerence Inc. (NASDAQ:CRNC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Aristotle Small Cap Equity Strategy added Cerence Inc. (NASDAQ:CRNC) to its portfolio during Q2 2023. In addition, please check out our hedge fund investor letters Q2 2024 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.