Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” third-quarter 2025 investor letter. The letter highlighted the market review, quarterly performance, and attribution analysis. A copy of the letter can be downloaded here. In the quarter, the US equity market rallied, with the S&P 500 Index reaching 8.12%. Bonds also finished higher in the period, with the Bloomberg U.S. Aggregate Bond Index increasing 2.03%. The composite has returned 7.22% gross of fees (7.10% net of fees) in the quarter, underperforming the S&P 500 Index’s 8.12% gain. Security selection led to the relative underperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Aristotle Atlantic Core Equity Strategy highlighted stocks such as DexCom, Inc. (NASDAQ:DXCM). DexCom, Inc. (NASDAQ:DXCM) is a medical device company that develops and commercializes continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was -10.33%, and its shares lost 21.30% of their value over the last 52 weeks. On November 13, 2025, DexCom, Inc. (NASDAQ:DXCM) stock closed at $59.72 per share, with a market capitalization of $23.292 billion.
Aristotle Atlantic Core Equity Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its third quarter 2025 investor letter:
“DexCom, Inc. (NASDAQ:DXCM) is a medical device company specializing in continuous glucose monitoring (CGM) systems for diabetes management. Founded in 1999, the company has developed innovative technology, including a small implantable device that measures glucose levels in subcutaneous tissue and transmits data to an external receiver. The company’s products, such as the Dexcom G7 CGM system and the Stelo Glucose Biosensor, cater to both adults and children with type 1 or type 2 diabetes, as well as adults with prediabetes and type 2 diabetes who do not use insulin. Its products are marketed to healthcare professionals in the U.S. and select international markets, with the U.S. being its largest market.
Our investment case for Dexcom is compelling due to its strong financial health, including a clean balance sheet and robust free cash flow generation. The company is experiencing significant growth, with organic revenue increasing in fiscal 2025 and earnings growth projected to continue over the next several years. The company is expanding its market reach with the successful launch of Stelo, a CGM for non-diabetics, and the transition to the G7 system, which offers a longer sensor life. Additionally, Dexcom is targeting the large and growing non-intensive type 2 diabetes market and continues to benefit from positive reimbursement trends. Overall, we believe this medical device company is well-positioned to capitalize on the increasing prevalence of diabetes and the growing adoption of CGM technology.”
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the second quarter, the same as in the previous quarter. For the third quarter of 2025, DexCom, Inc. (NASDAQ:DXCM) reported global revenue of $1.21 billion, compared to $994 million in the third quarter of 2024. While we acknowledge the risk and potential of DexCom, Inc. (NASDAQ:DXCM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DexCom, Inc. (NASDAQ:DXCM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered DexCom, Inc. (NASDAQ:DXCM) and shared the list of best NASDAQ growth stocks to buy for the next 5 years. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
