Aristotle Funds, an investment advisor, released its “Growth Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top-performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed resilience. However, consumer confidence deteriorated toward year-end, raising concerns about future spending and the labor market. Against this backdrop, the Aristotle Growth Equity Fund (Class I-2) returned 0.95%, underperforming the Russell 1000 Growth Index’s 1.12%. Poor security selection in the information technology and consumer discretionary sectors detracted from performance, while positive contributions from healthcare and industrials improved relative performance. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Aristotle Growth Equity Fund highlighted Guardant Health, Inc. (NASDAQ:GH) as one of its leading contributors. Guardant Health, Inc. (NASDAQ:GH) is a precision oncology company that specializes in a liquid biopsy test to detect cancer from blood samples. On February 25, 2026, Guardant Health, Inc. (NASDAQ:GH) stock closed at $95.27 per share. One-month return of Guardant Health, Inc. (NASDAQ:GH) was -13.77%, and its shares gained 126.24% over the past twelve months. Guardant Health, Inc. (NASDAQ:GH) has a market capitalization of $12.373 billion.
Aristotle Growth Equity Fund stated the following regarding Guardant Health, Inc. (NASDAQ:GH) in its fourth quarter 2025 investor letter:
“Guardant Health, Inc. (NASDAQ:GH) contributed to performance in the fourth quarter after better-than-expected third-quarter earnings results driven by volume growth and news of an acquisition of a competitor. General market sentiment in the industry has been improving throughout the year as business momentum grows.”
Guardant Health, Inc. (NASDAQ:GH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 62 hedge fund portfolios held Guardant Health, Inc. (NASDAQ:GH) at the end of the fourth quarter, up from 50 in the previous quarter. In Q4 2025, Guardant Health, Inc. (NASDAQ:GH) delivered approximately $281 million in revenue marking 39% year-over-year growth. While we acknowledge the potential of Guardant Health, Inc. (NASDAQ:GH) 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.
