Aristotle
Aristotle Small Cap Equity
Small-cap
Dec 2024 → Sep 2026
Our archive holds 5 letters from this strategy, behind 13 investment theses and positions in 26 companies. Every quote below is copied verbatim from the letter it came from.
5 letters in 3 years · follow all of Aristotle for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD
- YTD+10.8%index +13.7%
- 1Y+12.9%index +16.2%
- 3Y · /yr+10.6%index +17.7%
- 5Y · /yr+8.0%index +9.8%
- 10Y · /yr+8.3%index +8.2%
- Inception · /yr+4.2%index +6.3%
Index: Russell 2000 Index
| YTD | 1Y | 3Yper year | 5Yper year | 10Yper year | Since inceptionper year | |
|---|---|---|---|---|---|---|
| Aristotle Small Cap Equity | +10.8% | +12.9% | +10.6% | +8.0% | +8.3% | +4.2% |
| Russell 2000 Index | +13.7% | +16.2% | +17.7% | +9.8% | +8.2% | +6.3% |
Calendar years
- 2025+0.6%index +12.8%
- 2024+9.4%index +11.5%
- 2023+6.8%index +16.9%
- 2022−10.1%index −20.4%
- 2021+19.2%index +14.8%
- 2020+9.5%index +20.0%
- 2019+24.2%index +25.5%
- 2018−12.0%index −11.0%
- 2017+18.4%index +14.7%
- 2016+18.9%index +21.3%
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We exited our position in Knowles following strong share price appreciation, which reduced the potential upside and made the risk/reward profile less compelling.
The position was liquidated due to increased uncertainty surrounding the pace of recovery and potential margin pressures that diminished the attractiveness of the risk/reward profile, prompting us to redeploy capital into higher conviction opportunities.
We exited the position after Q2 earnings beat expectations resulting in the stock’s appreciation which compressed the risk/reward profile.
• Bentley Systems (BSY), is an infrastructure engineering software company that provides software and digital twin solutions used to design, build, and operate critical infrastructure across transportation, water, energy, and construction markets worldwide.
The position was liquidated due to deteriorating fundamentals.
• Freshpet (FRPT), is a premium pet food company that manufactures and distributes fresh, refrigerated dog and cat food through a proprietary network of branded refrigerators in retail stores across North America.
The position was liquidated due to increased uncertainty surrounding the pace of recovery and potential margin pressures that diminished the attractiveness of the risk/reward profile, prompting us to redeploy capital into higher conviction opportunities.
• U.S. Physical Therapy (USPH), is an operator of outpatient physical and occupational therapy clinics, providing rehabilitation services and workplace injury prevention solutions through a nationwide network of partner-led practices.
• Weatherford International (WFRD), is a global oilfield services and equipment provider that helps energy producers optimize drilling, well construction, production, and asset performance through a combination of engineering expertise, advanced technologies, and digital solutions.
• IPG Photonics (IPGP), is a global leader in high power fiber laser technology, providing mission critical laser systems used in industrial manufacturing, semiconductor fabrication, electric vehicle production, and medical applications.
The position was liquidated due to deteriorating fundamentals.
We exited the position after the loss of a significant customer contract materially changed our investment thesis, reducing confidence in the company's long term earnings and growth outlook.
• UMB Financial (UMBF), is a regional bank with a diversified business model spanning commercial banking, institutional asset servicing, private wealth management, healthcare payments, and specialty financial services.
The position was sold as the stock appreciated and reached our valuation target, reducing the risk/reward opportunity.
Also held
Its investment theses
- Mercury SystemsSep 2026Mercury Systems develops mission-critical electronics for aerospace and defense and is seen as emerging from an operational reset with attractive valuation and improving margins.
- Bentley SystemsSep 2026Bentley Systems provides infrastructure engineering software and is viewed as attractive for recurring revenue, free cash flow, customer retention, and long-term tailwinds.
- FreshpetSep 2026Freshpet makes premium refrigerated pet food and is seen as benefiting from secular growth, market share gains, and expanding margins.
- U.S. Physical TherapySep 2026U.S. Physical Therapy operates outpatient therapy clinics and is seen as benefiting from aging demographics, consolidation, and margin improvement opportunities.
- Weatherford InternationalSep 2026Weatherford International provides oilfield services and is viewed as having strong cash generation, a fortress balance sheet, and exposure to offshore and international spending.
- IPG PhotonicsJun 2026IPG Photonics makes high-power fiber lasers and is supported by vertical integration, strong IP, and secular manufacturing-related growth trends.
- Envista HoldingsMar 2026Envista Holdings is a diversified dental products company positioned in a resilient, growing end market with margin recovery potential at an attractive valuation.
- WesBancoDec 2025WesBanco is a regional bank with a strong financial base and diversified services positioned to grow deposits, C&I lending, and pursue M&A-driven expansion.
- Primo BrandsDec 2025Primo Brands is a leading U.S. bottled water company with diversified distribution and secular tailwinds from health and quality concerns driving category growth.
- Cohen & SteersDec 2025Cohen & Steers is a real estate-focused asset manager poised for earnings growth as flows improve with lower rates and supported by strong cash for capital deployment.