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Aristotle Atlantic and Artisan Detail Stock-Specific Drivers in Q3 Investor Letters

The letters emphasize security selection over the quarter’s broad rally in determining relative returns.

Overview

  • U.S. equities rose in Q3 2025 (S&P 500 up 8.12% and Bloomberg U.S. Aggregate up 2.03%), yet Aristotle Atlantic attributed relative shortfalls to stock picking rather than macro moves.
  • Aristotle Atlantic disclosed portfolio changes: selling Halliburton to fund Baker Hughes on expected U.S. completions headwinds, exiting Becton Dickinson after NIH-related earnings pressure and divestiture concerns, and selling Adobe due to intensifying AI-driven competition and Digital Media ARR risk.
  • Adaptive Biotechnologies was cited as a Core Equity contributor on MRD testing momentum, a quarterly earnings beat, and raised full-year guidance.
  • In Large Cap Growth, an underweight in Tesla hurt results as Q3 EV sales topped expectations ahead of expiring tax credits, with the strategy returning 9.76% versus 10.51% for the Russell 1000 Growth Index.
  • Artisan’s Small Cap Fund reported that MACOM assumed early operational control of a Wolfspeed fabrication plant following Wolfspeed’s bankruptcy, pressuring near-term margins, and the fund increased its MACOM position on share weakness.