Here’s Why Aristotle Capital Chose to Maintain its Position in NexTier (NEX)

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Small Cap Equity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, the Aristotle Small Cap Equity Composite generated a total return of -5.77% gross of fees (-5.92% net of fees), outperforming the -7.53% total return of the Russell 2000 Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Capital Management Small Cap Equity mentioned NexTier Oilfield Solutions Inc. (NYSE:NEX) and explained its insights for the company. Founded in 1973, NexTier Oilfield Solutions Inc. (NYSE:NEX) is a Houston, Texas-based U.S. land oilfield-focused service company with a $2.6 billion market capitalization. NexTier Oilfield Solutions Inc. (NYSE:NEX) delivered a 208.45% return since the beginning of the year, while its 12-month returns are up by 155.84%. The stock closed at $10.95 per share on May 26, 2022.

Here is what Aristotle Capital Management Small Cap Equity has to say about NexTier Oilfield Solutions Inc. (NYSE:NEX) in its Q1 2022 investor letter:

“NexTier Oilfield Solutions (NYSE:NEX), a provider of hydraulic fracturing and other completion-oriented oilfield services to exploration and production companies in the U.S., benefited from rising U.S. completion activity and rising prices due to tight supply/demand fundamentals for frac equipment. We maintain a position, as we believe the company’s dedicated service agreements, solid execution and merger synergies from recent mergers and acquisitions activity can unlock additional value for shareholders in periods to come.”

Our calculations show that NexTier Oilfield Solutions Inc. (NYSE:NEX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NexTier Oilfield Solutions Inc. (NYSE:NEX) was in 28 hedge fund portfolios at the end of the first quarter of 2022, compared to 16 funds in the previous quarter. NexTier Oilfield Solutions Inc. (NYSE:NEX) delivered a 60.79% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.