Aristotle Capital Boston, LLC, an investment advisor, released its fourth quarter investor letter for the Small Cap Equity Fund. A copy of the letter can be downloaded here. US small cap stocks posted modest gains in the fourth quarter of 2025. The quarter began as a continuation of the risk-on environment in the post-Liberation Day market, but ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, market expansion and shift away from mega-cap stocks supported small-caps during the quarter. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in the fourth quarter of 2025, lagging the 2.19% total return of the Russell 2000 Index. Stock selection supported overall performance, while allocation effects hurt performance. Review the strategy’s top five holdings to learn about its key picks for 2025.
In its Q4 2025 investor letter, Aristotle Small Cap Equity Fund highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as one of its top contributors. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is a technology company providing analog semiconductor solutions across the radio frequency (RF), microwave, millimeter wave and light wave spectrum. On February 13, 2026, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $244.16 per share. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)’s monthly performance was 10.64% and its shares have risen 98.31% in the past twelve months. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) has a market capitalization of $18.315 billion.
Aristotle Small Cap Equity Fund stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q4 2025 investor letter:
“MACOM Technological Solutions Holdings, Inc. (NASDAQ:MTSI) is a designer and manufacturer of high-performance semiconductor products. The stock benefited from strong quarterly results that beat analyst expectations. “We maintain our position as we believe the company’s significant exposure to growing demand for data center and 5G end-market applications, along with the integration of recent acquisitions and domestic manufacturing footprint, should continue to drive shareholder value.”
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 35 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the third quarter, up from 34 in the previous quarter. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) generated $271.6 million in revenue during the first quarter of fiscal 2026, an increase of 24.5% year over year. While we recognize the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.