Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index’s -9.48% total return. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Agree Realty Corporation (NYSE:ADC). Agree Realty Corporation (NYSE:ADC) is a publicly traded real estate investment trust that is RETHINKING RETAIL. The one-month return of Agree Realty Corporation (NYSE:ADC) was -6.49%, and its shares gained 22.47% of their value over the last 52 weeks. On May 15, 2025, Agree Realty Corporation (NYSE:ADC) stock closed at $73.92 per share with a market capitalization of $8.158 billion.
Aristotle Capital Small Cap Equity Strategy stated the following regarding Agree Realty Corporation (NYSE:ADC) in its Q1 2025 investor letter:
“Agree Realty Corporation (NYSE:ADC), is a real estate investment trust that owns, manages and develops primarily neighborhood community shopping centers and single tenant properties leased to major retail tenants such as Sherwin Williams, Wal-Mart and TJX Companies. We believe the company’s high-quality portfolio, recession resistant retail categories and strong balance sheet coupled with management’s proactive tenant management and acquisition pipeline will benefit the company on a go-forward basis.”
A city skyline with multiple office buildings, symbolizing the company’s diverse investments in real estate.
Agree Realty Corporation (NYSE:ADC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Agree Realty Corporation (NYSE:ADC) at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the potential of Agree Realty Corporation (NYSE:ADC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Agree Realty Corporation (NYSE:ADC) and shared the list of dividend stocks targeted by short sellers. In addition, please check out our hedge fund investor letters Q1 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.
