Here’s Why Renaissance Investment Management Midcap Growth Strategy Sold Arista Networks (ANET)
Renaissance Investment Management, an investment management company, released its “Midcap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.23% (net) compared to a 6.90% return for the Russell Midcap Growth Index. The strategy declined -13.42% (net) in 2022 compared to a -26.72% decline for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Renaissance Midcap Growth Strategy highlighted stocks like Arista Networks, Inc. (NYSE:ANET) in its Q4 2022 investor letter. Headquartered in Santa Clara, California, Arista Networks, Inc. (NYSE:ANET) is a cloud networking solutions provider. On March 22, 2023, Arista Networks, Inc. (NYSE:ANET) stock closed at $166.06 per share. One-month return of Arista Networks, Inc. (NYSE:ANET) was 21.35%, and its shares gained 18.89% of their value over the last 52 weeks. Arista Networks, Inc. (NYSE:ANET) has a market capitalization of $51.03 billion.
Renaissance Midcap Growth Strategy made the following comment about Arista Networks, Inc. (NYSE:ANET) in its Q4 2022 investor letter:
"Conversely, we sold our position in Arista Networks, Inc. (NYSE:ANET) following a deterioration in fundamental factors. A qualitative review leads us to believe that deteriorating macro-economic conditions could lead the company’s core customers to reduce their cloud infrastructure capital investments. Arista is uniquely exposed, given its customer concentration in several of the cloud titans."
Arista Networks, Inc. (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Arista Networks, Inc. (NYSE:ANET) at the end of the fourth quarter which was 42 in the previous quarter.
We discussed Arista Networks, Inc. (NYSE:ANET) in another article and shared Giverny Capital's views on the company. In addition, please check out our hedge fund investor letters Q4 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.
