Aristotle Core Equity Fund’s Q2 2026 Investor Letter

Aristotle Capital Management, LLC, an investment management company, released its “Core Equity Fund” Q2 2026 investor letter. The fund returned 14.69% in the second quarter of 2026, slightly trailing the 15.20% gain of the S&P 500 Index as market performance remained highly concentrated in artificial intelligence (AI)-related companies. The quarter was marked by strong equity market gains, with the S&P 500 reaching new record highs, while the Bloomberg U.S. Aggregate Bond Index advanced 0.67%. Economic conditions remained resilient, with unemployment at 4.2%, inflation easing to 3.5% year-over-year in June from 4.2% in May, and real GDP growth accelerating. The fund noted that AI-driven investment in semiconductors, memory, and data-center infrastructure continued to dominate market returns, creating significant performance dispersion across sectors. During the quarter, the managers increased exposure to areas benefiting from the AI infrastructure buildout and broader computing demand while reducing positions where growth prospects and valuation support appeared less compelling. Looking ahead, the fund remains constructive on equities, citing continued earnings growth, reasonable forward valuations, and long-term opportunities tied to AI, cloud computing, semiconductor demand, and other secular growth trends, although geopolitical tensions, persistent inflation, and the possibility of future Federal Reserve rate hikes remain key risks. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

A copy of Aristotle Core Equity Fund’s Q2 2026 investor letter can be downloaded here.