Aristotle Flags Advanced Energy as Q1 Small-Cap Driver, Holds Position

Overview

• Aristotle reported in its Q1 2026 investor letter published Thursday that the Small Cap Equity Fund (Class I-2) returned 1.50% for the quarter, outperforming the Russell 2000’s 0.89%.
• The firm named Advanced Energy Industries (AEIS) a leading contributor and said it will keep the stake because earnings revisions, AI-related infrastructure spending, and a pickup in semiconductor capital expenditure have powered the stock’s multi-quarter rally.
• Market data cited by Aristotle show AEIS closed at $313.05 on May 21, 2026, with a one-month decline of 18.15% and a 52-week gain of 170.01%, and a market capitalization near $12.52 billion.
• Hedge-fund interest in AEIS eased slightly to 27 portfolios at the end of the fourth quarter from 28 the prior quarter, and the stock does not rank among the publisher’s 30 most popular hedge-fund holdings.
• Aristotle says the small-cap strength in Q1 was supported by improving earnings and attractive valuations, which suggests fund investors may see continued upside from AI and chip-equipment suppliers but should also expect near-term volatility tied to earnings revisions and capex reports.