Aristotle Capital Boston, LLC, an investment advisor, released its fourth-quarter investor letter for “Small Cap Equity Fund”. A copy of the letter can be downloaded here. U.S. small-cap equities reported modest gains in the fourth quarter of 2025. The quarter started as a continuation of the post-Liberation Day risk-on market environment, while it ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, broadening of the market, and a shift from mega-cap stocks supported small caps in the quarter. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, trailing the 2.19% total return of the Russell 2000 Index. Security selection supported overall performance, while allocation effects detracted from performance. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Aristotle Small Cap Equity Fund noted stocks like Perella Weinberg Partners (NASDAQ:PWP). Perella Weinberg Partners (NASDAQ:PWP) is a financial services company that provides strategic and financial advice services. On February 13, 2026, Perella Weinberg Partners (NASDAQ:PWP) stock closed at $21.48 per share. One-month return of Perella Weinberg Partners (NASDAQ:PWP) was -1.65%, and its shares are down 9.86% over the past twelve months. Perella Weinberg Partners (NASDAQ:PWP) has a market capitalization of $1.908 billion.
Aristotle Small Cap Equity Fund stated the following regarding Perella Weinberg Partners (NASDAQ:PWP) in its fourth quarter 2025 investor letter:
“Perella Weinberg Partners (NASDAQ:PWP) is a boutique investment bank that has been investing in incremental deal capacity through strategic hires of experienced investment bankers. An expected upturn in mergers & acquisitions (M&A) activity over the next several years following a period of below average activity should allow the company to operationally leverage the investments they’ve been making during the downturn. Deal pipelines remain near all-time highs, activity is increasing, and the market is pricing in future modest interest rate cuts, which increases confidence that sustained M&A volume recovery is growing. This environment should allow the company to generate shareholder value over the coming years.”
Perella Weinberg Partners (NASDAQ:PWP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 16 hedge fund portfolios held Perella Weinberg Partners (NASDAQ:PWP) at the end of the third quarter, compared to 18 in the previous quarter. While we acknowledge the potential of Perella Weinberg Partners (NASDAQ:PWP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
