Should You Consider Selling S&P Global (SPGI)?

Artisan Partners, an investment management firm, has released its Q1 2024 “Artisan Global Discovery Fund” investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s APFDX Investor Class returned 8.40%, APDDX Advisor Class returned 8.37%, and APHDX Institutional Class returned 8.48%, compared to the MSCI All Country World Index’s return of 8.20%. Broad stock selection contributions in the healthcare, consumer staples, industrials, and consumer discretionary sectors drove the fund’s outperformance during the quarter. This was partially offset by information technology. Additionally, please see the fund’s top five holdings for its top picks in 2024.

Artisan Global Discovery Fund highlighted stocks like S&P Global Inc. (NYSE:SPGI) in its Q1 2024 investor letter. S&P Global Inc. (NYSE:SPGI) provides credit ratings, benchmarks, analytics, and workflow solutions across the global capital, commodities, and automotive markets. S&P Global Inc. (NYSE:SPGI) has a one-month return of 3.15%, and its shares have gained 12.62% of their value over the past 52 weeks. On July 2, 2024, S&P Global Inc. (NYSE:SPGI) stock closed at $450.45 per share with a market cap of $140.819 billion.

Artisan Global Discovery Fund said the following about S&P Global Inc. (NYSE: SPGI) in its Q1 2024 investor letter:

“We have completed our investment campaigns in BJ’s Wholesale Club, Moncler and S&P Global Inc. (NYSE: SPGI) during the quarter. We acquired shares of S&P Global upon its merger with IHS Markit. S&P Global is one of the world’s largest credit rating agencies and a provider of benchmarks, data and analytics for the global capital and commodities markets. The company has been through a period of free cash flow expansion due to merger-induced cost-cutting exercises. However, we believe this opportunity is maturing. In addition, recent financial results have shown disappointing guidance, including lower rating revenue growth. Given the slowdown in the earnings cycle, we have decided to exit our position.

A group of analysts study data on a large screen.

S&P Global Inc. (NYSE:SPGI) is ranked 25th on our list of the 31 most popular stocks among hedge funds. According to our database, 97 hedge fund portfolios held S&P Global Inc. (NYSE:SPGI) at the end of the first quarter, up from 82 in the prior quarter. While we recognize the potential of S&P Global Inc. (NYSE:SPGI) as an investment, our conviction lies in the belief that AI stocks have more promise to deliver higher returns, and in a shorter time frame. If you are looking for an AI stock that is as promising as NVIDIA but is trading at less than 5x earnings, check out our report on the the cheapest AI stock.

We discussed S&P Global Inc. (NYSE:SPGI) in another article and shared Parnassus Value Equity Fund’s views on the company. Additionally, please visit our Q1 2024 hedge fund investor letters page for more investor letters from hedge funds and other prominent investors.

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Disclosure: None. This article was originally published on Insider Monkey.