Aristotle Funds, an investment advisor, released its “Growth Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top-performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed resilience. However, consumer confidence deteriorated toward year-end, raising concerns about future spending and the labor market. Against this backdrop, the Aristotle Growth Equity Fund (Class I-2) returned 0.95%, underperforming the Russell 1000 Growth Index’s 1.12%. Poor security selection in the information technology and consumer discretionary sectors detracted from performance, while positive contributions from healthcare and industrials improved relative performance. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Aristotle Growth Equity Fund highlighted stocks like Snowflake Inc. (NYSE:SNOW). Based in Bozeman, Montana, Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform company. On February 24, 2026, Snowflake Inc. (NYSE:SNOW) stock closed at $161.06 per share. One-month return of Snowflake Inc. (NYSE:SNOW) was -25.44%, and its shares lost 3.09% over the past 52 weeks. Snowflake Inc. (NYSE:SNOW) has a market capitalization of $55.115 billion.
Aristotle Growth Equity Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its fourth quarter 2025 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud-based data platform that empowers organizations to consolidate, manage, and analyze their data securely and efficiently. Through its AI Data Cloud, Snowflake enables customers to eliminate data silos, apply AI and analytics, build data-driven applications, and share data across organizations, all while leveraging a flexible, consumption-based pricing model. With a scalable architecture spanning compute, storage, and cloud services, Snowflake supports diverse industry specific solutions and serves a global customer base, including many of the world’s largest enterprises.
Snowflake stands out as a leading data cloud platform, capitalizing on the shift of enterprise analytics to the cloud and serving a vast addressable market. Its cloud-neutral, multi-cloud approach and deepened partnerships, especially with Microsoft Azure, drive strong market adoption and insulate growth. The company’s consumption-based pricing model supports impressive retention and expansion, while also providing the potential for upsell traction among an expanding roster of large enterprise clients. With rapid growth in generative AI and new workloads, Snowflake is capturing substantial AI-related revenue and customer interest. We believe its robust financial profile, featuring strong margins and a clear path to profitable growth at scale, positions Snowflake as a compelling long-term investment opportunity. It trades at a premium valuation compared to the broader group of infrastructure peers, but we view this as justified by the multi-year outlook and opportunity for revenue growth and margin expansion.”
Snowflake Inc. (NYSE:SNOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 90 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the fourth quarter, compared to 102 in the previous quarter. While we acknowledge the risk and potential of Snowflake Inc. (NYSE:SNOW) 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 Snowflake Inc. (NYSE:SNOW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Snowflake Inc. (NYSE:SNOW) and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
