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Aristotle Atlantic’s Q3 Letters Show Modest Lag to Benchmarks, Detail Stock-Specific Moves

Managers cite security selection as the key driver of relative results.

Overview

  • Core Equity returned 7.22% gross (7.10% net) in Q3 2025 versus the S&P 500’s 8.12%.
  • Large Cap Growth returned 9.76% gross (9.61% net) against a 10.51% gain for the Russell 1000 Growth Index.
  • The Core Equity portfolio sold Halliburton to fund Baker Hughes, pointing to prolonged U.S. onshore activity and pricing headwinds for Halliburton’s completion and pumping business.
  • The team exited Becton, Dickinson after NIH funding cuts hurt results and guidance, and sold Adobe on rising AI-driven competition seen pressuring seats, pricing and Digital Media ARR growth.
  • Attribution highlights included strength from Adaptive Biotechnologies on MRD testing momentum and raised guidance, continued conviction in Shopify’s commerce platform, and a drag from Visa on slowing growth concerns.