Aristotle Atlantic’s Focus Growth Strategy Sold Expedia Group (EXPE) Due to a Higher Risk of a Recession

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 Expedia Group, Inc. (NASDAQ:EXPE). Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company with a market capitalization of $23.58 billion. The one-month return of Expedia Group, Inc. (NASDAQ:EXPE) was 9.60%, and its shares gained 39.80% of their value over the last 52 weeks. On July 21, 2025, Expedia Group, Inc. (NASDAQ:EXPE) stock closed at $185.47 per share.

Aristotle Atlantic Focus Growth Strategy stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its second quarter 2025 investor letter:

We sold Expedia Group due to a higher risk of a recession following the significant increase in global tariffs, which can be expected to reduce overall levels of economic activity. In addition, the negative impact on the wealth effect due to potentially declining equity markets will likely impact demand for retail travel. Travel is among the most discretionary spend categories within the consumer discretionary sector.

A busy airport terminal with a family eagerly waiting for their business trip.

Expedia Group, Inc. (NASDAQ:EXPE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Expedia Group, Inc. (NASDAQ:EXPE) at the end of the first quarter, which was 72 in the previous quarter. In the first quarter of 2025, Expedia Group, Inc. (NASDAQ:EXPE) reported revenue of $3 billion, up 3% year-over-year. While we acknowledge the risk and potential of Expedia Group, Inc. (NASDAQ:EXPE) 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 Expedia Group, Inc. (NASDAQ:EXPE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Expedia Group, Inc. (NASDAQ:EXPE) and shared the list of best magic formula 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.