Aristotle Capital Management, LLC, an investment management company, released its “International Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. During the quarter global equity markets reached record highs. The MSCI ACWI Index surged 6.61%, while the Bloomberg Global Aggregate Bond Index rallied 6.98%. Aristotle Capital International Equity returned 10.97% gross of fees (10.82% net of fees) in the third quarter outperforming the MSCI EAFE Index’s 7.26% return, and the MSCI ACWI ex USA Index’s 8.06% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Aristotle Capital International Equity Strategy highlighted stocks like Diageo plc (NYSE:DEO) in the third quarter 2024 investor letter. Diageo plc (NYSE:DEO) engages in the production and distribution of alcoholic beverages. The one-month return of Diageo plc (NYSE:DEO) was 1.52%, and its shares lost 11.76% of their value over the last 52 weeks. On October 14, 2024, Diageo plc (NYSE:DEO) stock closed at $135.43 per share with a market capitalization of $75.234 billion.

Aristotle Capital International Equity Strategy stated the following regarding Diageo plc (NYSE:DEO) in its Q3 2024 investor letter:

"Headquartered in London, England, Diageo plc (NYSE:DEO) is a global leader in the alcoholic beverages industry. The company has a vast portfolio of over 200 well-recognized premium spirits (~80% of FY 2024 sales), beers (~15% and mostly Guinness) and other beverages (~5%) that are sold in nearly 180 countries. Led by its Johnnie Walker brand, Diageo is the world’s largest exporter of Scotch whiskey—its largest category at ~25% of sales—followed by other spirits such as tequila and vodka (~10% each). Diageo also owns a ~34% stake in the premium champagne and cognac maker Mo?t Hennessy (a subsidiary of LVMH Mo?t Hennessy Louis Vuitton).

A close-up of bottles of whisky and other alcoholic beverages from a winery.

Diageo plc (NYSE:DEO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Diageo plc (NYSE:DEO) at the end of the second quarter which was 30 in the previous quarter. Diageo plc’s (NYSE:DEO) group organic net sales declined 0.6% in fiscal year 2024, after three years of extraordinary top line growth. While we acknowledge the potential of Diageo plc (NYSE:DEO) 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.