Aristotle
Aristotle Capital Small Cap Equity
Small-cap
Jun 2025 → Jun 2025
Our archive holds 2 letters from this strategy, behind 4 investment theses and positions in 14 companies. Every quote below is copied verbatim from the letter it came from.
2 letters in a year · follow all of Aristotle for every strategy.
What it bought and sold
we felt the dramatic shift away from a long-standing strategy of smaller, technology forward acquisitions combined in a meaningfully increased financial leverage profile justified selling the position.
• Verra Mobility (VRRM), is a provider of automated enforcement, tolling, and parking technologies and solutions.
an increasingly uncertain economic outlook as a result of the threat of increased global tariffs pushed out the expected demand recovery combined with a cyclically driven stressed balance sheet caused us to exit the position.
we chose to exit our position as we were not comfortable with the new management team, nor with the significantly increased loan to deposit ratio.
• Guardian Pharmacy Services (GRDN), is a leading provider of pharmacy services to long-term care assisted living and behavioral health facilities in the U.S.
• ScottsMiracle-Gro (SMG), is a leading manufacturer of branded consumer lawn and garden products in North America.
• Interparfums (IPAR), is a global manufacturer, marketer and distributor of fragrance products in the United States and Europe.
• Alight (ALIT), operates a cloud-based platform that provides human capital management and benefits administration solutions to mostly Fortune 500 companies.
ongoing weak demand had weighed on the company’s profitability for longer than anticipated and with expectations for continued economic pressures for their core low-income customers, we decided to exit the position.
Subsequent to initiating the position, the company announced a merger with Chart Industries (GTLS) that is expected to enhance the combined companies’ ability to provide more products and services to their global customers’ projects.
Also held
Its investment theses
- Guardian Pharmacy ServicesJun 2025Guardian Pharmacy Services (GRDN) is a leading technology-driven provider of pharmacy services for long-term care facilities, well-positioned to capitalize on the growing demand from the aging U.S. population.
- InterparfumsJun 2025Interparfums is a global manufacturer and distributor of prestige fragrances, well-positioned to benefit from growing demand and innovation in the market.
- ScottsMiracle-GroJun 2025ScottsMiracle-Gro (SMG) is positioned for enhanced shareholder value through margin expansion and balance sheet deleveraging as demand normalizes post-COVID and it refocuses on its core business.
- Verra MobilityJun 2025Verra Mobility (VRRM) is well-positioned to capitalize on growing demand for automated enforcement solutions, supported by strong recurring revenues and high profit margins.