Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The volatility that was seen in 2024 persisted into the fourth quarter. From style perspective, value companies underperformed their growth counterparts during the quarter, with the Russell 2000 Value Index returning -1.06% while the Russell 2000 Growth Index returned 1.70%. In the fourth quarter, the strategy delivered a return of -0.46% net of fees (-0.31% gross of fees) underperforming the Russell 2000 Index’s 0.33% total return. Security selection drove the underperformance of the strategy in the quarter. For more information on the fund’s best picks in 2024, please check its top five holdings.
Aristotle Small Cap Equity Strategy highlighted stocks like Amentum Holdings, Inc. (NYSE:AMTM), in the fourth quarter 2024 investor letter. Amentum Holdings, Inc. (NYSE:AMTM) offers engineering and technology solutions to address challenges in science, security, and sustainability. The one-month return of Amentum Holdings, Inc. (NYSE:AMTM) was 13.17%, and YTD its shares gained 8.37% of their value. On January 17, 2025, Amentum Holdings, Inc. (NYSE:AMTM) stock closed at $22.79 per share with a market capitalization of $5.545 billion.
Aristotle Small Cap Equity Strategy stated the following regarding Amentum Holdings, Inc. (NYSE:AMTM) in its Q4 2024 investor letter:
“Amentum Holdings, Inc. (NYSE:AMTM), is a global engineering and technology solutions provider serving the US government agencies as well as international government agencies from allied nations. The company was formed by spin-off and merger of Jacobs Solutions’ (J) Critical Mission Solutions (CMS) and Cyber & Intelligence (CI) businesses with Amentum Holdings (private). As a result, existing J shareholders received shares of the newly formed combined company (AMTM). We maintained our position in AMTM as we believe the company is well positioned to benefit from government spending on digital modernization, cybersecurity and next generation technologies. The combination of the two companies exposes AMTM to new end market and geographic opportunities as well as operating scale efficiencies to drive incremental shareholder value.”
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Amentum Holdings, Inc. (NYSE:AMTM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Amentum Holdings, Inc. (NYSE:AMTM) at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the potential of Amentum Holdings, Inc. (NYSE:AMTM) 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 cheapest AI stock.
Aristotle Small/Mid Cap Equity Strategy received shares of mentum Holdings, Inc. (NYSE:AMTM) as part of the corporate action in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 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.