Overview
- The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, trailing the Russell 2000’s 2.19% total return.
- Managers described the quarter for small caps as modestly positive, starting with a post‑‘Liberation Day’ risk-on tone and finishing strong on a supportive macro backdrop.
- The fund fully exited Patterson-UTI Energy, citing a weakening energy market outlook that was undermining fundamentals.
- Titan Machinery was also sold as fundamentals deteriorated and the strategic outlook became uncertain.
- The team added IDACORP for regulated rate base growth tied to industrial load and migration, and it highlighted Perella Weinberg as poised to benefit from an expected multi‑year M&A recovery.