Here’s Why Aristotle Small/Mid Cap Equity Composite Sold Columbus McKinnon Corporation (CMCO)

Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid 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 4.64% net of fees (4.78% gross of fees), underperforming the 8.59% total return of the Russell 2500 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/Mid Cap Equity Strategy highlighted stocks such as Columbus McKinnon Corporation (NASDAQ:CMCO). Columbus McKinnon Corporation (NASDAQ:CMCO) designs, manufactures, and markets motion solutions that facilitate the movement, lifting, positioning, and securing of materials. The one-month return of Columbus McKinnon Corporation (NASDAQ:CMCO) was -10.62%, and its shares lost 58.87% of their value over the last 52 weeks. On July 31, 2025, Columbus McKinnon Corporation (NASDAQ:CMCO) stock closed at $14.65 per share, with a market capitalization of $420.826 million.

Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding Columbus McKinnon Corporation (NASDAQ:CMCO) in its second quarter 2025 investor letter:

“Columbus McKinnon Corporation (NASDAQ:CMCO), engages in the design, manufacture, and marketing of material handling products and systems. After carefully assessing the company’s announced acquisition of Kito-Crosby, and choice of convertible preferred equity to finance the deal, we felt the dramatic shift away from a long-standing strategy of smaller, technology forward acquisitions combined in a meaningfully increased financial leverage profile justified selling the position.”

Columbus McKinnon Corporation (CMCO): Among Stocks Insiders Were Buying In Q1 2025

A large construction site with a modern industrial hoist in focus.

Columbus McKinnon Corporation (NASDAQ:CMCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Columbus McKinnon Corporation (NASDAQ:CMCO) at the end of the first quarter, which was 15 in the previous quarter. In the first fiscal quarter of 2026, Columbus McKinnon Corporation (NASDAQ: CMCO) reported sales of $235.9 million, which is a 2% decrease from the previous year. While we acknowledge the risk and potential of Columbus McKinnon Corporation (NASDAQ:CMCO) 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 Columbus McKinnon Corporation (NASDAQ:CMCO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Columbus McKinnon Corporation (NASDAQ:CMCO) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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