Does Alight (ALIT) Have Growth Opportunities?

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 Alight, Inc. (NYSE:ALIT). Alight, Inc. (NYSE:ALIT) is a cloud-based integrated digital human capital and business solutions provider. The one-month return of Alight, Inc. (NYSE:ALIT) was 1.82%, and its shares lost 23.98% of their value over the last 52 weeks. On July 22, 2025, Alight, Inc. (NYSE:ALIT) stock closed at $5.58 per share, with a market capitalization of $3.06 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Alight, Inc. (NYSE:ALIT) in its second quarter 2025 investor letter:

“Alight, Inc. (NYSE:ALIT), operates a cloud-based platform that provides human capital management and benefits administration solutions to mostly Fortune 500 companies. We believe the company has the opportunity to grow its business through the expansion of existing client relationships along with attracting new clients to their platform. Self-help initiatives implemented by the new CEO coupled with technological enhancements to the platform are expected to streamline operational costs and improve margins on a go-forward basis.”

Is Alight Inc. (ALIT) the Best AI Stock to Buy Under $10?

A person viewing their financial progress on a computer, highlighting the financial health offerings of the company.

Alight, Inc. (NYSE:ALIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Alight, Inc. (NYSE:ALIT) at the end of the first quarter, which was 42 in the previous quarter. In the first quarter of 2025, Alight, Inc. (NYSE:ALIT) reported revenue of $548 million which was at the midpoint of guidance range. While we acknowledge the risk and potential of Alight, Inc. (NYSE:ALIT) 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 Alight, Inc. (NYSE:ALIT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Alight, Inc. (NYSE:ALIT) and shared the list of most undervalued stocks under $10 to buy. 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.