Aristotle Funds, an investment advisor, released its “Core 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. The Federal Reserve took a cautious approach due to mixed economic signals and uncertainty around data. Artificial intelligence remained a significant theme of the market. In this environment, the Aristotle Core Equity Fund (Class I-2) returned 3.15% in the quarter compared to the S&P 500 Index’s 2.66% return. Both allocation effects and security selection contributed to the outperformance of the Fund in the quarter. 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 Core Equity Fund highlighted General Motors Company (NYSE:GM) as one of its leading contributors. General Motors Company (NYSE:GM) is a leading automotive manufacturing company. On February 26, 2026, General Motors Company (NYSE:GM) stock closed at $80.79 per share. One-month return of General Motors Company (NYSE:GM) was -3.82%, and its shares gained 64.44% over the past 52 weeks. General Motors Company (NYSE:GM) has a market capitalization of $75.366 billion.
Aristotle Core Equity Fund stated the following regarding General Motors Company (NYSE:GM) in its fourth quarter 2025 investor letter:
“General Motors Company (NYSE:GM) contributed to performance in the fourth quarter of 2025. Estimates for the year 2026 have been increasing following GM’s third quarter earnings report at the end of October. The company has been more effective in mitigating tariff expenses than originally planned earlier in 2025. The elimination of tax credits for electric vehicles may increase relative demand for internal combustion engine vehicles, which are more profitable for GM than the sales of electric vehicles.”
General Motors Company (NYSE:GM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 81 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the fourth quarter, up from 71 in the previous quarter. While we acknowledge the risk and potential of General Motors Company (NYSE:GM) 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 General Motors Company (NYSE:GM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered General Motors Company (NYSE:GM) and shared a list of Goldman Sachs EV and battery stocks. 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.
