Overview
- The fund's Q2 investor letter, published Thursday, August 20, 2026, reported a 13.69% quarterly return that trailed the Russell 2000's 21.49% gain.
- Aristotle named MACOM Technology Solutions and Mercury Systems as its top contributors and cited Alamos Gold and Huron Consulting as the largest detractors.
- During the quarter the fund initiated new positions in IPG Photonics and UMB Financial to target advanced manufacturing and regional financial services opportunities.
- Aristotle sold Americold Realty Trust because of deteriorating fundamentals and exited Byline Bancorp and Verra Mobility after valuation targets were met, redeploying proceeds into what it sees as higher‑return ideas.
- The letter framed the shifts as part of a broader move by managers to trim concentrated tech winners and buy underpriced or structurally advantaged small caps, with reshoring, infrastructure spending, M&A activity and regulation cited as potential supports for earnings growth.