Aristotle Atlantic’s Focus Growth Added HubSpot (HUBS) to Its Portfolio. Here’s Why

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market regained its strength in the second quarter, following initial volatility, with the S&P 500 Index rising 10.94%. The Bloomberg U.S. Aggregate Bond Index also surged 1.21% during the quarter. Aristotle Atlantic’s Focus Growth strategy returned 17.70% gross of fees (17.67% net of fees) in the quarter, underperforming the Russell 1000 Growth Index’s 17.84% total return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Aristotle Atlantic Focus Growth Strategy highlighted stocks such as HubSpot, Inc. (NYSE:HUBS). HubSpot, Inc. (NYSE:HUBS) offers a cloud-based customer relationship management (CRM) platform for businesses. The one-month return of HubSpot, Inc. (NYSE:HUBS) was -1.92%, and its shares gained 11.91% of their value over the last 52 weeks. On July 21, 2025, HubSpot, Inc. (NYSE:HUBS) stock closed at $546.64 per share, with a market capitalization of $28.828 billion.

Aristotle Atlantic Focus Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its second quarter 2025 investor letter:

“HubSpot, Inc. (NYSE:HUBS) provides a cloud-based customer relationship management (CRM) platform that integrates marketing, sales, service, content management and operations hubs into a unified system. Its platform features applications and tools for tasks such as website creation, business blogging, search engine optimization, web analytics, lead generation and more, while also offering a native payment solution. Designed to create adaptable and cohesive customer experiences, HubSpot’s Smart CRM and engagement hubs facilitate unified customer profiles and seamless interaction across the customer lifecycle. The hubs, available in free and paid tiers, can function independently, integrate with HubSpot’s Smart platform or third-party CRMs, and scale alongside growing businesses.

We invested in HubSpot for its strategic positioning in a large, underserved SMB market, its effective freemium-to-enterprise conversion funnel and its rapidly growing AI suite “Breeze,” which enhances automation and personalization across customer interactions. With strong adoption across product tiers, momentum in enterprise expansion, and scalable financials driving margin expansion and free cash flow growth, we believe the company is well-positioned to deliver durable, long-term value. We believe the current valuation is fair based on the combination of durable revenue growth, expanding margins and the early signs of traction in AI monetization.”

Analyst Explains Catalysts for ‘Significant’ Revenue Upside for HubSpot (HUBS)

A team of software developers gathered around a monitor discussing a new CRM platform.

HubSpot, Inc. (NYSE:HUBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the first quarter, which was 73 in the previous quarter. While we acknowledge the risk and potential of HubSpot, Inc. (NYSE:HUBS) 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 HubSpot, Inc. (NYSE:HUBS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered HubSpot, Inc. (NYSE:HUBS) and shared best debt-free stocks to invest in. In addition, please check out our hedge fund investor letters Q2 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.