Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the US equity market rallied, with the S&P 500 Index reaching 8.12%. Bonds also finished higher in the period, with the Bloomberg U.S. Aggregate Bond Index increasing 2.03%. The letter discussed market review, quarterly performance, and attribution analysis. Aristotle Atlantic’s Large Cap Growth strategy returned 9.76% gross of fees (9.61% net of fees) compared to 10.51% return of the Russell 1000 Growth Index. Security selection led to the relative underperformance 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 third-quarter 2025 investor letter, Aristotle Atlantic Large Cap Growth Strategy highlighted stocks such as Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides a cloud-based platform to start, scale, market, and run a business. The one-month return of Shopify Inc. (NASDAQ:SHOP) was -11.34%, and its shares gained 37.93% of their value over the last 52 weeks. On November 14, 2025, Shopify Inc. (NASDAQ:SHOP) stock closed at $146.04 per share, with a market capitalization of $187.593 billion.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its third quarter 2025 investor letter:
“Shopify Inc. (NASDAQ:SHOP) is a global commerce technology company that empowers businesses of all sizes to start, scale, market, and operate efficiently through a comprehensive, multi-channel platform. The company’s focus is to make commerce better for everyone by providing simple, reliable tools and services that enhance the shopping experience for consumers and streamline operations for merchants. Shopify’s business model includes recurring subscription solutions and merchant success-based solutions, supporting millions of merchants across more than 175 countries. The platform enables seamless management of products, sales, and customer relationships across online, physical, and social channels, with a focus on continuous innovation and robust infrastructure to help merchants thrive in a competitive market.
We see Shopify as the dominant force in e-commerce enablement, benefiting from the secular shift toward online retail and the growing ecosystem of merchants seeking direct-to-consumer channels, consistently gaining market share as competitors lose ground. We think the company’s financial momentum is robust, with revenue growth accelerating and record gross merchandise volume, while structural profitability and strong free cash flow illustrate its scalable model. Shopify’s expanding suite of merchant solutions deepens customer engagement and increases revenue per merchant over time. International expansion is a key driver, with global revenue and gross merchandise value (GMV) outpacing North America and local competitors. We also see high customer retention fueled by integrated merchant services that create significant switching costs, supporting long-term platform stickiness. Shopify’s aggressive investment in AI—through features like Shopify Magic, Sidekick, and strategic partnerships—powers innovation and personalized shopping experiences. The platform’s extensive merchant base and thriving app ecosystem reinforce its competitive moat, making Shopify a flexible and difficult-to-replicate “commerce OS (Operating System)” for millions of businesses worldwide. We recognize that the stock trades at a premium to SaaS peers but view the company’s acceleration in revenue growth from increasing market share in both North America and international markets, a widening competitive moat, and increasing profitability through higher revenue per customer as supportive of the premium valuation.”
Shopify Inc. (NASDAQ:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) at the end of the second quarter, compared to 77 in the previous quarter. In Q3 2025, Shopify Inc.’s (NASDAQ:SHOP) revenue increased 32% year-over-year. While we acknowledge the risk and potential of Shopify Inc. (NASDAQ:SHOP) 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 Shopify Inc. (NASDAQ:SHOP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shopify Inc. (NASDAQ:SHOP) and shared the list of most fantastic stocks every investor should pay attention to. In Q3 2025, Shopify Inc. (NASDAQ:SHOP) contributed to Baron Focused Growth Fund’s performance. 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.
