Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equity market continued its rally in the third quarter, with the S&P 500 Index rising 8.12% during the quarter. Bonds also finished higher in the quarter, with the Bloomberg U.S. Aggregate Bond Index increasing 2.03%. The composite returned 4.33% gross of fees (3.82% net of fees) in the third quarter, compared to a 5.33% return of the Russell 1000 Value Index and an 8.12% return of the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted stocks such as Wells Fargo & Company (NYSE:WFC). Wells Fargo & Company (NYSE:WFC) is a financial services company. The one-month return of Wells Fargo & Company (NYSE:WFC) was 3.54%, and its shares gained 34.30% of their value over the last 52 weeks. On October 15, 2025, Wells Fargo & Company (NYSE:WFC) stock closed at $86.46 per share, with a market capitalization of $272.257 billion.
Aristotle Capital Value Equity Strategy stated the following regarding Wells Fargo & Company (NYSE:WFC) in its third quarter 2025 investor letter:
“Headquartered in San Francisco, California, and founded in 1852, Wells Fargo & Company (NYSE:WFC) is one of the country’s largest and most established financial institutions. With total assets near $2 trillion, the company provides a wide array of banking and financial solutions across the U.S. and key international markets. Its operations span four primary business segments—Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management—which serve a diverse client base ranging from individuals and small businesses to multinational corporations and institutional investors.
Historically, Wells Fargo was among the most profitable and efficient major banks, known for its low-cost funding and strong returns on equity and assets. However, a series of consumer-related scandals that came to light in 2016 weighed heavily on its results and reputation, ultimately leading the Federal Reserve to impose a $1.95 trillion limit on the bank’s assets. In June 2025, the Fed lifted that cap, citing significant progress in the firm’s risk management and compliance practices. The removal of this constraint represents a major turning point, enabling the bank to return to balance sheet growth and compete on a more level footing with peers. Under CEO Charlie Scharf (appointed in 2019), management has streamlined the organization, invested in technology and reinforced governance standards—initiatives that, in our view, have strengthened Wells Fargo’s long-term resilience and rebuilt the foundation for sustainable growth…” (Click here to read the full text)
Wells Fargo & Company (NYSE:WFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 75 hedge fund portfolios held Wells Fargo & Company (NYSE:WFC) at the end of the second quarter, compared to 88 in the previous quarter. Wells Fargo & Company’s (NYSE:WFC) revenue increased by 5% in the fiscal third quarter of 2026, compared to last year, driven by growth in net interest income and strong fee-based revenue. While we acknowledge the risk and potential of Wells Fargo & Company (NYSE:WFC) 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 Wells Fargo & Company (NYSE:WFC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wells Fargo & Company (NYSE:WFC) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 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.