| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.69% | 4.32% | 1.99% |
The Aristotle Value Equity Fund returned 4.32% in Q2 2026, underperforming the Russell 1000 Value Index's 13.87% return due to underexposure to AI data center infrastructure spending, particularly semiconductors and memory. The manager characterizes current semiconductor earnings as real but transient scarcity profits that will normalize when supply catches up, and they are actively avoiding these names despite extraordinary performance. Instead, they are using the market dislocation to upgrade the portfolio toward Durable Quality businesses with natural monopolies, irreplaceable infrastructure, and sustainable pricing power. The manager sold Atmos Energy and Danaher to purchase Autodesk and Edwards Lifesciences, which they view as offering more compelling risk-reward opportunities. Key contributors included Qualcomm and Alphabet, while detractors included Corteva and Motorola Solutions due to near-term headwinds. The broader economy outside AI infrastructure is struggling, with construction facing its toughest environment since the Global Financial Crisis. The manager maintains conviction that prices and fundamentals will eventually reconnect, positioning the portfolio for long-term value creation beyond the current cycle.
The manager is focused on accumulating Durable Quality businesses at attractive valuations while avoiding Transient Quality companies benefiting from temporary scarcity pricing in AI infrastructure, believing that capital concentration in speculative themes creates opportunities to upgrade the portfolio toward franchises with permanent competitive advantages and long-term pricing power.
The manager expects that capital will eventually chase diminishing returns in AI infrastructure, valuations will become overly extended, and investors will rediscover quality businesses outside the market's narrow focus. They believe cycles do not end because underlying technology disappears but because expectations and prices become disconnected from what is normal. While discipline can feel uncomfortable in periods like this, they expect prices and fundamentals to eventually reconnect, and their objective is to ensure clients own businesses with the durability, pricing power and compounding potential to create value well beyond the current cycle.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 8 2026 | 2026 Q2 | ADSK, ATO, CTVA, DHR, EW, GOOGL, MSI, MU, NVDA, QCOM | AI, Data centers, Durable Franchises, large cap, Quality, semiconductors, Valuation discipline, value | - | Aristotle Value underperformed in Q2 2026 due to deliberate underexposure to AI infrastructure semiconductors, which the manager views as transient scarcity earnings destined to normalize. They are upgrading the portfolio toward Durable Quality franchises with permanent competitive advantages at attractive valuations, selling Atmos and Danaher to buy Autodesk and Edwards Lifesciences. The manager expects capital concentration in speculative themes to eventually reverse as fundamentals reconnect with prices. |
| May 1 2026 | 2026 Q1 | CVX, MKC, MSFT, MSI, QCOM, TTE, VZ | Consumer Staples, dividends, energy, large cap, semiconductors, technology, Telecommunications, value |
TTE VZ MSFT QCOM CVX MSI |
Aristotle Value Equity Fund underperformed in Q1 2026 amid broad market volatility from geopolitical tensions and AI disruption concerns. Energy led by TotalEnergies drove outperformance while technology holdings faced headwinds. The manager added quality names Chevron, McCormick, and Motorola Solutions, maintaining disciplined long-term focus and viewing recent sector drawdowns as creating attractive opportunities for patient capital. |
| Jan 30 2026 | 2025 Q4 | AMGN, CBSH, COF, LEN, MRK, MSFT, PH, SONY, STZ, TDY, UBER, USB, WFC | AI, earnings, large cap, rates, Trade Policy, US, value |
SONY UBER PH COF CBSH |
Aristotle's Value Equity strategy underperformed in Q4 2025 due to security selection challenges, particularly in technology and consumer discretionary sectors. Strong aerospace and financial services holdings were offset by Sony's one-time charges and Uber's margin pressures. The manager maintains disciplined focus on business fundamentals over macro timing, positioning for long-term value creation despite near-term headwinds. |
| Oct 14 2025 | 2025 Q3 | ADBE, AIG, ALC, AMP, ANSYS, CTVA, GD, MLM, MUFG, SNPS, SONY, WFC, XEL | Energy Transition, financials, materials, technology, Trade Policy, Utilities, value |
SNPS US WFC US |
Aristotle Capital's Value Equity strategy underperformed in Q3 due to security selection challenges, particularly in Corteva and Ameriprise Financial. Strong contributors included Martin Marietta Materials and Xcel Energy. New positions in Synopsys and Wells Fargo reflect focus on quality businesses with competitive advantages. Manager maintains disciplined fundamental approach despite macroeconomic uncertainty and mixed trade policy developments. |
| Jul 22 2025 | 2025 Q2 | ALC, AMGN, AWK, COF, CTRA, CTVA, MCHP, MRK, MSFT, PH, UBER, XYL | Biotechnology, Cloud, healthcare, semiconductors, technology, Trade Policy, value |
MSFT US MCHP US AMGN US ALC SW UBER US MSFT MCHP AMGN ALC UBER |
Value Equity outperformed its benchmark in Q2 2025 despite macro headwinds from trade policy uncertainty and geopolitical tensions. Microsoft and Microchip Technology drove performance through cloud growth and semiconductor recovery. The firm maintains focus on high-quality businesses with strong fundamentals rather than predicting macro timing, recently swapping Xylem for Uber as a more compelling opportunity. |
| Apr 10 2025 | 2025 Q1 | 8411.T, ADBE, AIG, AMGN, AMP, APD, AWK, BX, GOOGL, HON, LEN, ML.PA, MSFT, SONY | AI, Cloud, energy, financials, industrials, technology, Trade Policy, value |
ADBE SONY APD GOOGL |
Aristotle Capital's value strategy delivered modest positive returns in Q1 2025 despite market volatility from trade policy uncertainty. Strong corporate earnings and selective stock picking drove performance, with Sony leading contributions while Adobe faced AI disruption concerns. Portfolio repositioning included new investments in Air Products' hydrogen opportunity and Alphabet's undervalued technology platform, maintaining focus on quality companies over macro timing. |
| Jan 30 2025 | 2024 Q4 | ADBE, AMGN, AMP, ANSYS, ATO, BX, CFR, COF, CTVA, LEN, MCHP, MLM, MSFT, MUFG, PH, SONY | Asset Management, financials, Homebuilders, semiconductors, technology, value |
COF AMP LEN MCHP |
Aristotle Value Equity Fund underperformed in Q4 2024 due to narrow AI-driven market focus favoring growth over value. Financial holdings like Capital One and Ameriprise contributed positively while homebuilder Lennar and semiconductor Microchip detracted. The manager maintains conviction in their quality-oriented value approach, believing fundamentals will drive long-term outperformance over full market cycles despite near-term headwinds. |
| Sep 30 2024 | 2024 Q3 | ADBE, ADSK, AIG, AMGN, AMP, ATO, BX, COF, CRBG, CTVA, LEN, MCHP, MLM, MRK, MSFT, PH, QCOM, VZ, XEL | Alternative Assets, insurance, large cap, semiconductors, Telecommunications, value |
VZ AIG |
Aristotle Value Equity Fund underperformed in Q3 due to tech and industrial stock selection but made strategic moves into Verizon and AIG. The manager sees compelling value in telecommunications infrastructure and insurance transformation stories while maintaining conviction in quality companies that can navigate uncertainty over multi-year horizons. |
| Jul 10 2024 | 2024 Q2 | ADBE, ALC, AMGN, AMP, AWK, CCI, CTVA, DHR, ECL, LEN, LOW, MCHP, MLM, MSFT, OSK, PH, QCOM, VEEV, XYL | Homebuilders, infrastructure, large cap, semiconductors, technology, value, water | AWK | Aristotle Value outperformed value peers through strong tech stock selection, particularly Qualcomm's automotive expansion and Microsoft's AI infrastructure development. Homebuilder Lennar faced affordability headwinds despite capital optimization. Portfolio changes included exiting Crown Castle amid strategic uncertainty and adding American Water Works for regulated utility exposure with substantial infrastructure investment runway. |
| Apr 15 2024 | 2024 Q1 | ADBE, AMP, ANSS, COF, CTVA, ELS, LEN, LOW, MCHP, MLM, MSFT, PH, PSX, SONY, SYY, TTE, XEL | energy, financials, large cap, materials, technology, Utilities, value |
LOW TTE |
Aristotle Value Equity Fund underperformed in Q1 due to Adobe and Xcel Energy weakness, offset by Martin Marietta and Corteva strength. The fund rotated from Phillips 66 and Sysco into TotalEnergies and Lowe's for better energy transition and home improvement exposure. Management maintains focus on high-quality companies despite macro uncertainties. |
| Jan 13 2024 | 2023 Q4 | ALC, CINF, COF, CTRA, CTVA, LEN, MSFT, MUFG, QCOM, STZ, TDY, USB | Agriculture, Banking, financials, Homebuilders, technology, value |
TDY USB |
Aristotle Value Equity outperformed in Q4 2023 driven by strong security selection, particularly Lennar's resilient homebuilding execution. The firm added Teledyne Technologies and U.S. Bancorp while selling Cincinnati Financial, maintaining focus on quality businesses at attractive valuations with clear catalysts. Despite macro volatility, the bottom-up fundamental approach continues targeting long-term value creation through disciplined stock selection. |
| Oct 19 2023 | 2023 Q3 | ADBE, AMP, ANSS, CTVA, DHR, LEN, MCHP, MLM, MSFT, PH | financials, industrials, materials, Quality, technology, value | - | Aristotle Value Equity Fund targets high-quality companies with competitive advantages at attractive valuations, seeking catalysts for 3-5 year value realization. The fund outperformed its benchmark year-to-date with 4.73% returns versus 1.79% for Russell 1000 Value, maintaining concentrated exposure to technology, financials, and industrials through 42 holdings with 91.1% active share. |
| Jan 31 2023 | 2022 Q4 | MRK, SUI, SYY | - | - | |
| Feb 12 2022 | 2022 Q3 | ADBE, CFR, SONY, XYL | - | - | |
| Jun 30 2022 | 2022 Q2 | ADSK, AMG GR, KO, MCHP, MLM | - | - | |
| Mar 30 2022 | 2022 Q1 | ATO, BX, CORTVSR BZ, EWBC, LEN, OSK, XEL | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Data CentersThe manager discusses the extreme capital spending on data center infrastructure, particularly processors and memory, driven by AI demand. They note that roughly 3,000 new data centers are planned or under construction in the U.S., creating bottlenecks and scarcity profits. The manager views these as transient earnings that will normalize when supply catches up. |
AI Memory Semiconductors Infrastructure Nvidia |
Semiconductor CycleThe manager describes the semiconductor cycle as driven by scarcity pricing in processors and memory, with companies like Nvidia and Micron experiencing extraordinary earnings growth. They characterize these as real but transient scarcity earnings that will normalize as supply increases, and they actively avoid these names despite their strong performance. |
Memory Micron Nvidia Scarcity Pricing | |
QualityThe manager defines three types of quality: Transient (scarcity-driven, cyclical), Conventional (eroding moats), and Durable (permanent scarcity, pricing power). They are actively upgrading the portfolio toward Durable Quality businesses with natural monopolies, irreplaceable infrastructure, and the ability to raise prices ahead of inflation for years without impairing volume. |
Moats Pricing Power Franchises Durability Resilience | |
ValueThe manager emphasizes their discipline in purchasing quality businesses at attractive valuations that reflect normalized fundamentals rather than extrapolated scarcity earnings. They are using the current market dislocation to upgrade the portfolio toward elite businesses at valuations they believe better reflect long-term earnings power. |
Valuation Discipline Fundamentals Normalized Earnings | |
Medical DevicesThe manager initiated a position in Edwards Lifesciences, a leader in transcatheter heart valve therapies (TAVR). They view the company as having high barriers to entry, strong physician loyalty, and significant growth opportunities in both TAVR expansion and newer mitral/tricuspid therapies, which represent a larger underpenetrated market. |
TAVR Cardiovascular Innovation Clinical Data | |
Enterprise SoftwareThe manager purchased Autodesk, the industry standard for computer-aided design in architecture, engineering, and construction. They see attractive valuation given the company's ability to sustain double-digit revenue growth with 40% operating margins, supported by pricing power, high customer retention, and expanding adoption of BIM and 3D modeling tools. |
SaaS Subscription BIM Recurring Revenue | |
| 2026 Q1 |
EnergyTotalEnergies was the top contributor, benefiting from geopolitical tensions and supply disruptions through the Strait of Hormuz. The manager emphasizes the company's diversified energy platform across upstream, LNG, and renewables. Chevron was added as a new position, viewed as offering attractive returns through its low-cost upstream portfolio and disciplined capital allocation. |
Oil LNG Integrated Oil & Gas Energy Trading Geothermal |
AIMicrosoft faced headwinds from broad software sell-off as investors weighed AI disruption potential and elevated infrastructure investment impacts on margins. Despite this, Azure grew 39% and the manager sees increasing real-world AI adoption through Microsoft's integrated ecosystem. AI demand is also constraining memory supply for Qualcomm's smartphone business. |
Cloud Data Centers Enterprise Software Semiconductors | |
TelecommunicationsVerizon was a primary contributor after delivering strongest customer growth in years under new CEO Dan Schulman. The company completed its $20 billion Frontier acquisition, expanding fiber footprint to 30 million homes. Management is repositioning toward sustainable, value-driven growth with improved network investment and customer experience focus. |
Wireless Telecom Broadband Telecom Infrastructure | |
SemiconductorsQualcomm was a detractor despite record revenues, guiding lower due to memory-related supply constraints from AI data center demand driving higher memory prices. This is constraining smartphone production and leading to cautious inventory strategies. The manager views these as cyclical headwinds while Qualcomm executes its evolution toward broader connected computing. |
Memory Connectivity Chips Smartphones | |
Consumer StaplesMcCormick was added as a new position, representing the global leader in spices and seasonings. The manager highlights the company's proprietary flavor technology, scale advantages in sourcing, and strategy to expand operating margins particularly in Flavor Solutions segment while investing in higher-growth heat portfolio platforms. |
Food Personal Care Beverages | |
| 2025 Q4 |
AIThe fund extensively analyzes whether current AI markets represent a bubble, comparing it to the late 1990s internet bubble. They question AI equipment depreciation schedules, datacenter power demands, and whether promised returns will materialize, while noting the market's shift in viewing Google from AI laggard to leader. |
Artificial Intelligence Bubble Valuations Technology Infrastructure |
BiotechnologyThe short book faced headwinds particularly within biotech this quarter. The fund also references biotech companies that go public via reverse mergers and spend capital on stock promotion rather than lab research as patterns they use for successful shorts. |
Biotech Short Selling Reverse Mergers Stock Promotion | |
| 2025 Q3 |
Trade PolicyThe Trump Administration implemented various tariff measures including 25% on Indian imports due to Russian oil purchases and 40% on Brazil over data censorship concerns. However, trade tensions eased with EU and Japan agreements establishing 15% baseline tariffs and significant U.S. investment commitments. China relations stabilized with extended tariff suspension. |
Tariffs Trade China EU Japan |
Energy TransitionXcel Energy benefits from rising demand for clean energy and electrification with a $45 billion five-year capital plan focused on renewable projects and grid infrastructure. The company's service territories offer excellent wind and solar resources supported by state policies accelerating coal transition. |
Renewables Grid Clean Energy Wind Solar | |
SemiconductorsSynopsys acquisition of ANSYS expands capabilities from chip-level to system-level design across industries. The company benefits from increasing complexity in AI chips and high-performance computing making EDA software more mission critical. Export restrictions to China and Intel's foundry shift created near-term headwinds. |
EDA AI Chip Design Semiconductors ANSYS | |
Crop ProtectionCorteva announced separation of seed and crop protection businesses despite strong performance through August. The Enlist E3 platform captured over 60% of U.S. soybean acres in under two years with expanding corn adoption. Market reaction was initially negative due to potential dis-synergies. |
Seeds Crop Protection Enlist Agriculture Separation | |
| 2025 Q2 |
Trade PolicyPresident Trump introduced a universal 10% import tariff and reciprocal tariffs on dozens of countries as part of Liberation Day. A 90-day pause on reciprocal tariffs was enacted for almost all countries to encourage negotiations. The U.S. and U.K. finalized the Economic Prosperity Deal, expanding American access to British markets and lowering tariffs on U.K. autos. |
Tariffs Trade Negotiations Import Export |
CloudMicrosoft delivered strong quarterly results with Azure revenue growing 35% well ahead of expectations, driven by improved execution in core cloud services and sustained AI-related demand. Strength extended beyond AI with renewed momentum in traditional enterprise cloud workloads including data platforms, infrastructure hosting and developer services. |
Azure Enterprise Infrastructure Data AI | |
Semiconductor CycleMicrochip Technology showed signs of fundamental improvement after several quarters of customer destocking. Bookings stabilized supported by more balanced inventories across customers and distribution channels, with indications of recovering end-market demand. The company benefited from cost-saving initiatives and tighter inventory management under renewed leadership. |
Microcontrollers Inventory Bookings Recovery Semiconductors | |
BiotechnologyAmgen continued advancing its robust pipeline with bemarituzumab phase 3 trial for gastric cancer meeting its primary endpoint and MariTide weight-loss drug demonstrating strong efficacy in phase 1 and 2 trials. The company reaffirmed long-term commitment to domestic manufacturing through upcoming $2 billion expansions in Ohio and North Carolina. |
Pipeline Clinical Manufacturing Oncology Obesity | |
| 2025 Q1 |
AIAdobe faces competitive threats from generative AI platforms like OpenAI's Sora and Canva, but is actively embedding AI through Firefly across Creative Cloud applications. Firefly has generated $125 million in annualized recurring revenue with management expecting it to double by year-end. AI integration enhances Adobe's competitive moat through product functionality and increased switching costs. |
Generative AI Firefly Creative Cloud Monetization Competitive Moat |
Trade PolicyPresident Trump announced new tariffs on imports from Canada, Mexico and China, targeting autos, steel, aluminum and energy sectors. While tariffs initially raised concerns, selective enforcement and flexible implementation helped ease market anxiety. Over 220 companies referenced tariffs in earnings calls with nearly 15% issuing negative guidance. |
Tariffs Import Restrictions Market Uncertainty Earnings Impact Policy Implementation | |
Energy TransitionAir Products is pursuing clean hydrogen opportunities through megaprojects in Saudi Arabia and Louisiana. The company has refocused strategy under new CEO Eduardo Menezes, divesting non-core assets and focusing on industrial gases and clean hydrogen. Completion of green/blue hydrogen projects should enhance earnings amid increased demand from decarbonization policies. |
Clean Hydrogen Megaprojects Decarbonization Industrial Gases Strategic Focus | |
CloudGoogle Cloud is now profitable and scaling meaningfully as part of Alphabet's diversification beyond advertising. The company is effectively competing at scale with AWS and Microsoft Azure, showing improving profitability and margin expansion. Cloud represents approximately 13% of Alphabet's total revenue. |
Google Cloud Profitability Market Share Competition Revenue Growth | |
| 2024 Q4 |
ValueThe fund follows a quality-oriented approach to intrinsic value investing focused on fundamentals and unfolding catalysts measured in years, not quarters. The manager believes value investors often seek to invest in companies that are not in vogue with investors, and their approach is best measured over a full market cycle of three to five years. |
Value Fundamentals Intrinsic Value Quality Catalysts |
AIMarkets in 2024 were captivated by artificial intelligence as a singular theme. The AI-driven rally dominated market performance, with some high-quality technology companies not participating in the rally and therefore underperforming. The manager notes this narrow market focus driven by AI as a dominant narrative. |
AI Technology Rally Narrow Markets Theme | |
| 2024 Q3 |
TelecommunicationsThe fund invested in Verizon Communications, viewing it as positioned to benefit from 5G technology adoption and fiber network expansion. Verizon's wireless services account for approximately 70% of revenue, serving over 90 million postpaid customers as the country's largest wireless carrier. The company announced a $20 billion acquisition of Frontier to expand its fiber network to 31 states. |
5G Fiber Wireless Broadband Infrastructure |
InsuranceThe fund added American International Group (AIG), viewing the company's transformation under CEO Peter Zaffino as creating value. AIG has restructured underwriting, increased reinsurance levels, and divested non-core divisions to become a purely General Insurance-focused business. The company maintains over $160 billion in assets and over $25 billion in net written premiums. |
P&C Insurance Underwriting Reinsurance Transformation Capital | |
SemiconductorsMicrochip Technology was a primary detractor as the semiconductor producer faces challenges from inventory destocking following the 2021-2023 chip shortage. Clients overestimated needs during the shortage and are now working through inventory levels, though management sees some positive signs pointing toward recovery including higher expedited orders and fewer order cancellations. |
Microcontrollers Analog Inventory Recovery Cycle | |
Alternative Asset ManagersBlackstone was a leading contributor, reporting nearly $40 billion in inflows and deploying $34 billion during the quarter. The company possesses over $180 billion in dry powder and continues making progress penetrating retail and private-wealth channels, raising $7.5 billion overall during the quarter with encouraging signs in BCRED, BREIT, and the newly launched BXPE vehicles. |
Private Credit Real Estate Private Equity Retail Distribution | |
| 2024 Q2 |
AIMicrosoft continues to execute on AI catalysts across its businesses, particularly within cloud-based applications like Azure. The company detailed partnerships with NVIDIA and AMD to develop first-party silicon chips including its AI accelerator (Azure Maia) and CPU (Azure Cobalt). Qualcomm benefits as AI applications extend from the cloud to on-device. |
Azure Chips Cloud On-device |
WaterAmerican Water Works is the largest and most geographically diverse water and wastewater utility in the U.S., serving 14 million people across 14 states. The company expects to invest $16-17 billion from 2024-2028 replacing and upgrading infrastructure to improve efficiency and sustainability. The fund holds multiple water value chain companies including Xylem and Ecolab. |
Infrastructure Utilities Sustainability Regulated | |
HomebuildersLennar is shifting toward a capital-light business model with 79% of land controlled via options versus 21% owned. The company has formal plans for a spinoff of $6-8 billion of land assets and is monetizing non-core assets. However, affordability pressures from higher prices and mortgage rates are challenging gross margins. |
Capital-light Land Affordability Margins | |
SemiconductorsQualcomm continues to execute on shifting its business mix beyond smartphones, with automotive revenue growing 35% year-over-year and a design win pipeline of $45 billion. The company is on track to achieve $4 billion in auto-related revenues by 2026. Despite threats of insourcing from large clients, Qualcomm has retained high market share while expanding in non-smartphone devices. |
Automotive Smartphones Design wins Market share | |
| 2024 Q1 |
Energy TransitionTotalEnergies implements a two-pillar strategy balancing traditional energy with renewable investments, planning to invest over 30% of spending in low-carbon businesses. The company aims to rank among the world's top five providers of solar and wind energy by 2030. Xcel Energy is positioned to benefit from increased demand for clean energy with strong wind and solar resources. |
Renewables LNG Solar Wind Clean Energy |
Home ImprovementLowe's Companies operates as the world's second-largest home improvement retailer with over 1,700 stores serving primarily do-it-yourself customers. The company is executing on market share gains through supply chain improvements, upgraded IT systems, and enhanced omnichannel sales. Management focuses on increasing profitability and sales per square foot while gaining share with professional customers. |
Retail DIY Professional Omnichannel Market Share | |
AgricultureCorteva operates in seed and crop protection with the business at or near a cyclical bottom in 2023 following customer destocking. The company continues innovation with over 400 new product launches in 2023 and share gains for Enlist E3 soybeans achieving 58% market penetration. Crop protection sales guidance calls for return to growth in second half of 2024. |
Seeds Crop Protection Innovation Market Share Cyclical | |
| 2023 Q4 |
HomebuildersLennar demonstrated strong performance with dynamic pricing models and digital marketing platforms driving volume and cash flow generation. The company delivered 73,000 homes in 2023 with a 10% year-over-year increase, while advancing its land light strategy with 76% of land controlled through options. Management's ability to respond to changing housing dynamics positions the company well amid decade-long undersupply of homes in the U.S. |
Housing Construction Real Estate Land Strategy Cash Flow |
Crop ProtectionCorteva faced headwinds from customer destocking throughout 2023, particularly in Brazil, leading to lowered revenue and profit guidance. While the crop protection business appears at or near cyclical bottom, the seed business remained resilient with positive price/mix effects. Management continues executing on margin expansion catalysts through improved pricing and reduced royalty expenses. |
Agriculture Seeds Brazil Cyclical Margins | |
Regional BanksU.S. Bancorp represents a diversified regional bank with proven operating efficiency and balanced loan portfolio. The recent Union Bank acquisition provides enhanced West Coast presence and opportunities for revenue synergies and cost savings. The bank maintains attractive funding profile with high deposit share across multiple states and history of returning capital to shareholders. |
Banking Acquisitions Deposits Efficiency Returns |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | TTE | TotalEnergies | Oil & Gas Integrated | Integrated Oil & Gas | Bull | New York Stock Exchange | capital allocation, Diversified Energy, Downstream, Energy security, Free Cash Flow, Integrated Oil & Gas, LNG, renewable energy, Upstream | Login |
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | VZ | Verizon Communications Inc. | Telecom Services | Wireless Telecommunication Services | Bull | New York Stock Exchange | capital discipline, Customer growth, Dividend Growth, Fiber, Network Excellence, Premium Positioning, Share Buyback, transformation, Wireless Telecommunications | Login |
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | MSFT | Microsoft Corporation | Software - Infrastructure | Systems Software | Bull | NASDAQ | Artificial Intelligence, Azure, Cloud computing, Copilot, Digital transformation, Ecosystem, Enterprise Services, Free Cash Flow, Software | Login |
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | QCOM | Qualcomm Incorporated | Semiconductors | Semiconductors | Bull | NASDAQ | automotive, Connected Computing, diversification, Edge AI, Free Cash Flow, Internet of Things, R&D, semiconductors, wireless technology | Login |
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | CVX | Chevron Corporation | Oil & Gas Integrated | Integrated Oil & Gas | Bull | New York Stock Exchange | capital discipline, dividend, Free Cash Flow, Guyana, Integrated Oil & Gas, low-cost assets, Permian Basin, share repurchases, Upstream | Login |
| May 1, 2026 | Fund Letters | Aristotle Value Equity Fund | MSI | Motorola Solutions, Inc. | Communication Equipment | Communications Equipment | Bull | New York Stock Exchange | Command Center Software, Government, high switching costs, Land Mobile Radio, Mission-Critical Communications, Public safety, recurring revenue, SaaS, Video Security | Login |
| Jan 30, 2026 | Fund Letters | Howard Gleicher | SONY | Sony Group Corporation | Communication Services | Entertainment | Bull | New York Stock Exchange | Content, entertainment, Gaming, Ip, Margins | Login |
| Jan 30, 2026 | Fund Letters | Howard Gleicher | UBER | Uber Technologies, Inc. | Industrials | Passenger Transportation | Bull | New York Stock Exchange | Autonomy, Free Cash Flow, mobility, network effects, Regulation | Login |
| Jan 30, 2026 | Fund Letters | Howard Gleicher | PH | Parker-Hannifin Corporation | Industrials | Industrial Machinery | Bull | New York Stock Exchange | Aerospace, Automation, cashflow, Industrials, Margins | Login |
| Jan 30, 2026 | Fund Letters | Howard Gleicher | COF | Capital One Financial Corporation | Financials | Consumer Finance | Bull | New York Stock Exchange | buybacks, creditcards, Margins, Payments, scale | Login |
| Jan 30, 2026 | Fund Letters | Howard Gleicher | CBSH | Commerce Bancshares, Inc. | Financials | Regional Banks | Bull | NASDAQ | banking, capital discipline, Credit, dividends | Login |
| Oct 14, 2025 | Fund Letters | Howard Gleicher | SNPS US | Synopsys, Inc. | Information Technology | Semiconductor Design Software | Bull | NASDAQ | AI, Ansys, Eda, growth, Ip, Margins, recurring revenue, semiconductors, Simulation, Software | Login |
| Oct 14, 2025 | Fund Letters | Howard Gleicher | WFC US | Wells Fargo & Co. | Financials | Diversified Banks | Bull | NYSE | Banks, buybacks, Capital, Credit, dividends, efficiency, growth, Regulation, valuation | Login |
| Jul 22, 2025 | Fund Letters | Howard Gleicher | MSFT US | Microsoft Corporation | Information Technology | System Software | Bull | NASDAQ | AI, cloud, enterprise, Margins, Software, Subscriptions | Login |
| Jul 22, 2025 | Fund Letters | Howard Gleicher | MCHP US | Microchip Technology Inc. | Information Technology | Semiconductors | Bull | NASDAQ | cashflow, Industrials, Margins, Mcu, semiconductors, turnaround | Login |
| Jul 22, 2025 | Fund Letters | Howard Gleicher | AMGN US | Amgen Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, cashflow, Obesity, pharma, Pipelines, valuation | Login |
| Jul 22, 2025 | Fund Letters | Howard Gleicher | ALC SW | Alcon Inc. | Health Care | Health Care Equipment | Bull | Swiss Exchange | Demographics, innovation, lenses, Medtech, Ophthalmology | Login |
| Jul 22, 2025 | Fund Letters | Howard Gleicher | UBER US | Uber Technologies Inc. | Information Technology | Passenger Ground Transportation | Bull | NYSE | cashflow, delivery, Logistics, mobility, network effects | Login |
| Jun 30, 2025 | Fund Letters | Aristotle Value Equity Fund | MSFT | Microsoft Corporation | Software & Services | Systems Software | Bull | NASDAQ | AI, Azure, Cloud computing, Enterprise Services, productivity software, SaaS, Software, technology | Login |
| Jun 30, 2025 | Fund Letters | Aristotle Value Equity Fund | MCHP | Microchip Technology Incorporated | Semiconductors & Semiconductor Equipment | Semiconductors | Bull | NASDAQ | 5G, Analog, autonomous vehicles, Cyclical, data centers, IoT, Microcontrollers, semiconductors, turnaround | Login |
| Jun 30, 2025 | Fund Letters | Aristotle Value Equity Fund | AMGN | Amgen Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Biotechnology | Bull | NASDAQ | biotechnology, drug development, manufacturing, Oncology, Osteoporosis, pharmaceuticals, pipeline, Weight loss | Login |
| Jun 30, 2025 | Fund Letters | Aristotle Value Equity Fund | ALC | Alcon Inc. | Health Care Equipment & Services | Health Care Equipment | Bull | NYSE | Aging demographics, Cataract Surgery, Contact lenses, Eye Care, healthcare, Medical devices, oligopoly, premium products | Login |
| Jun 30, 2025 | Fund Letters | Aristotle Value Equity Fund | UBER | Uber Technologies, Inc. | Consumer Services | Internet & Direct Marketing Retail | Bull | NYSE | asset-light, food delivery, Gig Economy, Global, Logistics, mobility, network effects, ride-hailing, technology platform | Login |
| Dec 31, 2024 | Fund Letters | Aristotle Value Equity Fund | COF | Capital One Financial | Financials | Consumer Finance | Bull | NYSE | acquisition, banking, credit cards, digital payments, financial services, Payment Network, Regulatory | Login |
| Dec 31, 2024 | Fund Letters | Aristotle Value Equity Fund | AMP | Ameriprise Financial | Financials | Asset Management & Custody Banks | Bull | NYSE | asset management, AUM growth, capital return, Fee Based, Financial Advisors, financial services, wealth management | Login |
| Dec 31, 2024 | Fund Letters | Aristotle Value Equity Fund | LEN | Lennar | Consumer Discretionary | Homebuilding | Bull | NYSE | asset-light, homebuilding, Housing shortage, Land Options, mortgage rates, Real Estate, Volume Strategy | Login |
| Dec 31, 2024 | Fund Letters | Aristotle Value Equity Fund | MCHP | Microchip Technology | Information Technology | Semiconductors | Bull | NASDAQ | 5G, autonomous driving, data centers, Inventory Correction, IoT, Microcontrollers, restructuring, semiconductors | Login |
| Sep 30, 2024 | Fund Letters | Aristotle Value Equity Fund | VZ | Verizon Communications Inc. | Communication Services | Wireless Telecommunication Services | Bull | NYSE | 5G, acquisition, ARPU, broadband, cash flow, Fiber, infrastructure, market share, network, Spectrum, telecommunications, Wireless | Login |
| Sep 30, 2024 | Fund Letters | Aristotle Value Equity Fund | AIG | American International Group, Inc. | Financials | Multi-line Insurance | Bull | NYSE | capital allocation, General Insurance, Global, High Net Worth, Insurance, Property & Casualty, Reinsurance, risk management, ROE, share repurchase, transformation, underwriting | Login |
| Jun 30, 2024 | Fund Letters | Aristotle Value Equity Fund | AWK | American Water Works Company, Inc. | Utilities | Water Utilities | Bull | NYSE | Acquisitions, consolidation, defensive, Dividend Growth, essential services, infrastructure, Regulated Monopoly, Wastewater, Water Utility | Login |
| Mar 31, 2024 | Fund Letters | Aristotle Value Equity Fund | LOW | Lowe's Companies | Consumer Discretionary | Home Improvement Retail | Bull | NYSE | home improvement, market share, Omnichannel, Professional Customers, retail, supply chain, turnaround, Value | Login |
| Mar 31, 2024 | Fund Letters | Aristotle Value Equity Fund | TTE | TotalEnergies | Energy | Integrated Oil & Gas | Bull | NYSE | energy transition, Europe, Free Cash Flow, Integrated Oil, LNG, renewables, Solar, Value, Wind | Login |
| Dec 31, 2023 | Fund Letters | Aristotle Value Equity Fund | TDY | Teledyne Technologies | Technology Hardware & Equipment | Electronic Equipment, Instruments & Components | Bull | NYSE | Acquisitions, Aerospace, autonomous driving, Defense, Digital Imaging, environmental monitoring, FLIR Systems, Free Cash Flow, Industrial technology, Sensors, Surveillance, Thermal Imaging, Value | Login |
| Dec 31, 2023 | Fund Letters | Aristotle Value Equity Fund | USB | U.S. Bancorp | Banks | Diversified Banks | Bull | NYSE | banking, California, Deposit Share, fee income, operating efficiency, regional bank, shareholder returns, synergies, Union Bank Acquisition, Value, West Coast | Login |
| - | Fund Letters | Aristotle Value Equity Fund | ADBE | Adobe Inc. | Software & Services | Application Software | Bull | NASDAQ | Artificial Intelligence, Creative Cloud, creative software, digital media, Enterprise software, generative AI, SaaS, subscription model | Login |
| - | Fund Letters | Aristotle Value Equity Fund | SONY | Sony Group Corporation | Consumer Discretionary | Consumer Electronics | Bull | NYSE | Content IP, entertainment, Gaming, Image-sensors, Music streaming, Platform Owner, PlayStation, semiconductors | Login |
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| - | Fund Letters | Aristotle Value Equity Fund | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | Android, Artificial Intelligence, Cloud computing, digital advertising, market dominance, search engine, subscription services, YouTube | Login |
| TICKER | COMMENTARY |
|---|---|
| QCOM | Qualcomm, a leading semiconductor and communications technology company, was the largest contributor for the quarter. Shares recovered as management indicated that the inventory adjustments and production constraints resulting from higher memory costs were progressing largely as expected and that handset revenues from Chinese customers were expected to reach a bottom. As we noted last quarter, we believed these headwinds to be cyclical rather than structural and did not alter our long-term investment thesis. The company also continued to make progress on its long-term strategy of evolving from a handset-centric company into a broader provider of connected computing technologies. Automotive revenue reached another record high, while Internet of Things (IoT) and newer businesses such as AI-enabled PCs, industrial applications, and data center computing continue to represent a growing portion of the company and remain central to its long-term diversification strategy. We believe Qualcomm's technologies will continue to benefit as connectivity expands across devices and AI workloads increasingly extend from the cloud to the edge, supporting Qualcomm's ability to generate strong levels of FREE cash flow in the long run. |
| GOOGL | Alphabet, the parent company of Google and YouTube, was a primary contributor during the period. We initiated our position in the first quarter of 2025, when investors were concerned that generative AI tools would fundamentally alter search behavior and erode Google's advertising franchise. Since then, Alphabet has continued to demonstrate the strength of its ecosystem and the resilience of its core businesses. Google Search has remained strong, with AI-powered features increasing user engagement while supporting advertising growth, and Google Cloud has continued to benefit from robust enterprise demand for AI infrastructure and services. Importantly, Alphabet appears increasingly capable of monetizing these new experiences in a manner consistent with its historical strengths, through advertising, distribution, and integration across a broad user base rather than relying solely on paid subscriptions. YouTube also remains well positioned to benefit from continued growth in advertising and subscription revenues, including YouTube TV, as consumers continue to shift away from traditional cable. In addition, while we continue to monitor regulatory risk, capital intensity, and changes in search behavior, recent execution reinforces our view that Alphabet remains a high-quality business with durable competitive advantages and multiple avenues for long-term value creation. |
| CTVA | Corteva, the seed and crop protection company, was one of the largest detractors during the period. While fundamentals remained healthy, with first-quarter FREE cash flow supported by strength in both Seed and Crop Protection, the stock lagged a sharply rising market as investors focused on Corteva's more tempered outlook for the balance of the year. The management team cited potential second-half headwinds from tariffs, higher oil-related input costs, farmer fuel expenses, and competitive crop protection pricing in Latin America and Asia. We believe the market also weighed the near-term complexity of Corteva's planned fourth-quarter separation into New Corteva and Vylor, including potential dis-synergies from operating two public companies. Nevertheless, our investment thesis remains intact. Farmers continue to adopt Corteva's latest hybrids, varieties, and premium crop protection technologies, supporting Corteva's margin expansion. Meanwhile, the company's R&D-led innovation, disciplined cost management, and path toward net royalty income should enhance its long-term competitive position. Management has remained steadfast in returning shareholder value, with $500 million of share repurchases in the first half of the year. Finally, Corteva remains opportunistic as exemplified by its partnership with FMC Corporation to expand its product and technology portfolio. |
| MSI | Motorola Solutions (Motorola), the provider of mission-critical communications and security systems, was one of the largest detractors during the quarter. Shares declined as higher memory and supply chain costs weighed on near-term margin expectations. While these factors affected near-term results, they do not change our long-term thesis. At the core of the company is its land mobile radio business, which provides the communication backbone used by police, fire, and emergency responders—particularly during natural disasters or other high-stress situations when commercial networks may become congested or unavailable. These systems are deeply embedded in public safety agencies, where reliability, control, and resiliency are non-negotiable, and customer relationships are often supported by long-term service agreements, predictable equipment refresh cycles, and decades of trust. Importantly, Motorola is using this installed base to broaden its platform, integrating radios with video security, body-worn cameras, and command center software to help agencies unify voice, video, and data across public safety workflows. The company is also expanding its capabilities through acquisitions such as Silvus Technologies, which adds secure wireless communications technology used in defense, unmanned systems, and other demanding environments. We believe these opportunities, together with a continued shift toward higher-margin software and recurring services, should support improved profitability and FREE cash flow generation over our three- to five-year investment horizon. |
| ATO | We first invested in Atmos Energy, the largest fully regulated natural gas-only utility in the U.S., in the first quarter of 2022. We were attracted to the company's strong balance sheet, constructive regulatory environment across its service territories and significant opportunity to invest in infrastructure modernization projects. During our holding period, Atmos benefited from ongoing system replacement programs, population growth in its key markets and supportive rate mechanisms that allowed it to earn attractive returns on invested capital. While we continue to view Atmos as a high-quality business, we believe many of the catalysts identified at purchase have either been realized or are well underway. Looking ahead, we expect the company's growth plan to require a significantly higher level of equity capital than in prior investment cycles. As a result, we elected to exit our position and redeploy the proceeds into Autodesk, which we believe offers a more compelling investment opportunity. |
| DHR | We first invested in Danaher, a company focused on biotechnology, life sciences and diagnostics, in the second quarter of 2016, attracted by its disciplined capital allocation, differentiated operating culture and consistent FREE cash flow generation. The business is distinguished by a portfolio of market-leading franchises and a high mix of recurring consumables revenue tied to a large installed base. Its differentiated operating culture, anchored by the Danaher Business System (DBS), has historically enabled the company to be a highly effective acquirer, consistently integrating new businesses, expanding margins and driving strong FREE cash flow generation. Over our decade-long holding period, Danaher successfully transformed itself from a diversified industrial company into a more focused healthcare business. This evolution included the spinoffs of Fortive, Envista, and Veralto, as well as the acquisition and integration of key assets such as Pall, Cepheid and Cytiva. The company also increased the contribution from recurring revenue and workflow-based solutions embedded in customer operations, which contributed to the durability and predictability of the business. More recently, as Danaher has shifted further into more complex, innovation-driven end markets, the application of DBS appears to be less differentiated than it was in Danaher's traditional manufacturing-oriented businesses. Success in these new end markets is increasingly driven by scientific innovation, faster product cycles and more specialized customer requirements. At the same time, increased scale and a more centralized organizational structure appear to be limiting flexibility at the business unit level, reducing the speed and effectiveness with which opportunities can be pursued. While we continue to view Danaher as a high-quality business, we believe much of our original investment thesis has now been realized, with fewer company-specific catalysts ahead. Accordingly, we elected to exit the position and redeploy the proceeds into what we view as a more attractive opportunity in Edwards Lifesciences. |
| ADSK | Headquartered in Northern California and founded in 1982, Autodesk produces software that allows companies to design and model their products and/or projects. The company is the global industry standard for computer-aided design in the architecture, engineering and construction industry (AEC). Autodesk's millions of subscribers rely on its software to design and model buildings, manufactured products, animated films, and video games. The company's four segments are AEC (~48% of net sales), its iconic software AutoCAD (~27%), Manufacturing (~20%), and Media and Entertainment (M&E) (~5%). Autodesk primarily sells its software on a subscription basis, having discontinued perpetual license sales of most standalone products in 2016. As part of the move to subscription licensing, Autodesk replaced its product suite with three streamlined Industry Collections focused on AEC, Manufacturing and M&E. In recent years, the AEC industry has increasingly sought to resolve the inefficiencies that arise when many parties are needed to complete a building project. Autodesk has been at the cutting edge of enabling improvement through innovation and promoting the use of open standards, or open building information modeling (BIM), which allows for all relevant building data to be processed virtually in a 3D model and shared across stakeholders. Importantly, Autodesk's leadership in ensuring the interoperability of its software with that of competitors increases collaboration and productivity among architects, engineers and contractors—an attractive value proposition for its customers. We believe shares of Autodesk are attractively valued given our estimates of normalized earnings. In our view, the market underappreciates Autodesk's ability to sustain double-digit revenue growth while maintaining high levels of profitability, with operating margins of approximately 40%. Supported by pricing initiatives, strong customer retention and a highly recurring revenue model, we believe the shares do not fully reflect the company's long-term earnings power and ability to generate FREE cash flow. |
| EW | Headquartered in Irvine, California, Edwards Lifesciences (Edwards) is a global leader in structural heart disease therapies, developing and commercializing medical devices used to treat advanced cardiovascular conditions. The company is best known for its leadership in transcatheter aortic valve replacement (TAVR), a minimally invasive procedure that allows physicians to replace diseased heart valves without open-heart surgery. By reducing the invasiveness, recovery time and risk associated with traditional surgical valve replacement, TAVR has significantly expanded the number of patients eligible for treatment and accelerated adoption across the structural heart market. We have followed Edwards for many years as both a leading structural heart company and a competitor to Medtronic's CoreValve platform. Over the last decade, Edwards effectively bet the company on TAVR technology and successfully established its Sapien platform as one of the leading transcatheter heart valve systems globally while maintaining a meaningful presence in surgical aortic valve replacement (SAVR). Today, TAVR represents the core of Edwards' business and is supported by a large global installed base, extensive physician training and extensive long-term clinical evidence, reinforcing its position as a standard of care for aortic stenosis. Beyond TAVR, Edwards is expanding into transcatheter mitral and tricuspid therapies (TMTT), which represent a significantly larger but more underpenetrated market opportunity. The company is also investing in adjacent cardiovascular technologies, supported by continued investment in research and development, targeted acquisitions and substantial FREE cash flow generation. While the TAVR market is more developed, we believe both the continued expansion of this franchise and the scaling contribution from newer mitral and tricuspid therapies are not fully reflected in the current stock price. As these businesses continue to scale and adoption broadens, we expect continued improvement in operating performance and FREE cash flow generation over our investment horizon. |
| MU | For the first two years of this cycle, Nvidia stood directly in front of the firehose, absorbing a point-blank blast of capital that took pre-tax cash flow from $8 billion in 2023 to an estimated $250 billion in 2026. The firehose has pivoted to memory, as Micron's pre-tax cash flow is estimated to rise from $2.5 billion in 2023 to approximately $100 billion in FY26 and $200 billion in FY27 — year to date through June 30, Micron had the largest weight in the Russell 1000 Value Index and was up approximately 300%, contributing nearly 20% of the Index's return. These are real earnings, but they are scarcity earnings, and when supply catches up, we believe pricing, earnings, and valuations will normalize. |
| NVDA | For the first two years of this cycle, Nvidia stood directly in front of the firehose, absorbing a point-blank blast of capital that took pre-tax cash flow from $8 billion in 2023 to an estimated $250 billion in 2026. |
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