Aristotle Funds, an investment advisor, released its “Growth 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. Against this backdrop, the Aristotle Growth Equity Fund (Class I-2) returned 0.95%, underperforming the Russell 1000 Growth Index’s 1.12%. Poor security selection in the information technology and consumer discretionary sectors detracted from performance, while positive contributions from healthcare and industrials improved relative performance. 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 Growth Equity Fund highlighted stocks like KLA Corporation (NASDAQ:KLAC). KLA Corporation (NASDAQ:KLAC) is a global manufacturer and distributor of process control, process-enabling, and yield management solutions for the semiconductor and electronics industries. On February 25, 2026, KLA Corporation (NASDAQ:KLAC) stock closed at $1,546.68 per share. One-month return of KLA Corporation (NASDAQ:KLAC) was -8.19%, and its shares gained 121.22% over the past 52 weeks. KLA Corporation (NASDAQ:KLAC) has a market capitalization of $203.222 billion.
Aristotle Growth Equity Fund stated the following regarding KLA Corporation (NASDAQ:KLAC) in its fourth quarter 2025 investor letter:
“KLA Corporation (NASDAQ:KLAC) contributed to performance in the fourth quarter as leading-edge logic and memory customers accelerated capital spending to support advanced-node transitions. The company is benefiting from increased adoption of advanced packaging and extreme ultraviolet-related (EUV) inspection, where KLA maintains a technology leadership position, and investors continued to increase estimates for semiconductor capital equipment spending growth in 2026 and 2027 from prior consensus.”
KLA Corporation (NASDAQ:KLAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held KLA Corporation (NASDAQ:KLAC) at the end of the fourth quarter, up from 61 in the previous quarter. In the December quarter, KLA Corporation (NASDAQ:KLAC) delivered revenue of $3.3 million surpassing the mid-point of guidance. While we acknowledge the risk and potential of KLA Corporation (NASDAQ:KLAC) 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 KLA Corporation (NASDAQ:KLAC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered KLA Corporation (NASDAQ:KLAC) and shared a list of best extremely profitable stocks to invest in according to hedge funds. 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.
