Aristotle Small Cap Equity Strategy Sold Tronox (TROX) due to Increased Uncertainty

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Tronox Holdings plc (NYSE:TROX). Tronox Holdings plc (NYSE:TROX) is a vertically integrated TiO2 pigment manufacturer. The one-month return of Tronox Holdings plc (NYSE:TROX) was 3.91%, and its shares lost 62.97% of their value over the last 52 weeks. On July 23, 2025, Tronox Holdings plc (NYSE:TROX) stock closed at $5.85 per share, with a market capitalization of $927.003 million.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Tronox Holdings plc (NYSE:TROX) in its second quarter 2025 investor letter:

“Tronox Holdings plc (NYSE:TROX), a leading global manufacturer of titanium dioxide (TiO2) pigment, a key ingredient in paint, plastics and a variety of other industrial applications. We believe the company is well positioned to benefit from increased production volumes and product pricing driven by improving global economic conditions. However, an increasingly uncertain economic outlook as a result of the threat of increased global tariffs pushed out the expected demand recovery combined with a cyclically driven stressed balance sheet caused us to exit the position.”

Is Tronox Holdings plc (TROX) the Best Chemical Stock to Buy According to Analysts?

A close-up look at specialized machinery grinding up titanium dioxide pigment into ultrafine particles used as a colorant in paints, coatings, plastics, and paper.

Tronox Holdings plc (NYSE:TROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Tronox Holdings plc (NYSE:TROX) at the end of the first quarter, which was 21 in the previous quarter. While we acknowledge the risk and potential of Tronox Holdings plc (NYSE:TROX) 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 Tronox Holdings plc (NYSE:TROX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In previous article, we discussed Tronox Holdings plc (NYSE:TROX) and shared that J.P. Morgan analyst Jeffrey Zekauskas upgraded his ratings from Neutral to Overweight. 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.