Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets hit new all-time highs in Q4 2025, with the S&P 500 Index up 2.66% and the Bloomberg U.S. Aggregate Bond Index rising 1.10%. Value stocks outperformed growth stocks, and the U.S. economy showed resilience. Artificial intelligence was a major theme, with over 300 S&P 500 companies mentioning “AI” in earnings calls, boosting mega-cap tech stocks. However, concerns arose about AI revenue circularity, capital spending, and long-term investment returns. Against this backdrop, the Composite returned 1.45% pure gross of fees (0.95% net of fees), lagging the Russell 1000 Value Index’s 3.8% gain and the S&P 500 Index’s 2.66% gain. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted Sony Group Corporation (NYSE:SONY). Sony Group Corporation (NYSE:SONY) is a Japanese-based technology company and a significant detractor from the Strategy’s performance in the quarter. On February 3, 2026, Sony Group Corporation (NYSE:SONY) stock closed at $21.93 per share. Sony Group Corporation (NYSE:SONY) delivered a -12.70% return in the past month, and its shares are down 1.69% over the past twelve months. Sony Group Corporation (NYSE:SONY) has a market capitalization of $131.739 billion.
Aristotle Capital Value Equity Strategy stated the following regarding Sony Group Corporation (NYSE:SONY) in its fourth quarter 2025 investor letter:
“Sony Group Corporation (NYSE:SONY), the global leader in video games, image sensors, music and movies, was a primary detractor for the period. Shares declined following the recognition of a one-time, non-cash charge of approximately ¥50 billion in the Game & Network Services segment related to an impairment and accounting correction of previously capitalized development costs. Importantly, this charge was not recurring and did not reflect a deterioration in underlying operating performance. Excluding this item, operating income would have increased approximately 23% year-over-year, supported by healthy gaming engagement, continued growth in network services and software sales, and strong results in the Music segment driven by streaming growth and recent theatrical releases. The company’s image sensor business also benefited from a favorable product mix and steady end market demand. Looking ahead, we continue to see opportunity for Sony to capitalize on its unique position as both a content creator and platform owner. The company’s ability to integrate gaming, music, anime and film—and to leverage IP across its ecosystem—supports sustained engagement and recurring revenue. In addition, the recent spinoff of Sony’s Financial Services segment further sharpens management’s focus on its core content, technology and entertainment operations. We believe Sony’s industry leadership and continued focus on operational execution position the company well for long-term value creation.”
Sony, PS4, PlayStation, Games
Sony Group Corporation (NYSE:SONY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 22 hedge fund portfolios held Sony Group Corporation (NYSE:SONY) at the end of the third quarter, compared to 23 in the previous quarter. While we acknowledge the risk and potential of Sony Group Corporation (NYSE:SONY) 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 Sony Group Corporation (NYSE:SONY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Sony Group Corporation (NYSE:SONY) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q4 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.
