Multiple Headwinds Dragged Mercury Systems (MRCY) in Q2

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the composite delivered 1.16% net of fees (1.33% gross of fees) trailing the 5.21% total return of the Russell 2000 Index. The security selection hurt the portfolio while allocation effects positively contributed. Security selection in Communication Services and Materials along with an overweight to Industrials contributed to the relative performance while the Health Care, Information Technology, and Consumer Discretionary sectors detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Aristotle Small Cap Equity Strategy highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in the second quarter 2023 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves the defense and aerospace industries. On August 24, 2023, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $38.67 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was 5.95%, and its shares lost 25.58% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.25 billion.

Aristotle Small Cap Equity Strategy made the following comment about Mercury Systems, Inc. (NASDAQ:MRCY) in its second quarter 2023 investor letter:

“Mercury Systems, Inc. (NASDAQ:MRCY), a provider of secure sensor and safety-critical processing subsystems for the aerospace and defense markets, declined amid supply chain and logistical challenges, a resulting increase in lead times, and labor cost headwinds. We maintain a position, as we believe the company remains well-positioned to capitalize on continued outsourcing of subsystem development, modernization initiatives, and continued technological innovation under a new incoming leadership team.”

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Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of second quarter which was 20 in the previous quarter.

We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.