Aristotle Capital Management, LLC, an investment management firm, published its Q1 2026 “Core Equity Fund” investor letter. A copy of the letter can be downloaded here. During the first quarter, the US stock market fell with the S&P 500 index falling 4.33%. The fixed income sector also experienced a slowdown; The Bloomberg US Aggregate Bond Index fell 0.05%. For the quarter, the Fund (Class I-2) posted a total return of -4.45%, compared to the -4.33% return of the S&P 500 Index. The Fund’s poor performance in the quarter was due to the allocation effect, while stock selection contributed positively. In this environment, the Fund continues to focus on companies experiencing secular tailwinds or strong product-driven cycles. Also, check out the Fund’s top five holdings to learn your best picks in 2026.
In its Q1 2026 investor letter, Aristotle Core Equity Fund highlighted Darling Ingredients Inc. (NYSE:DAR) as one of its top contributors. Darling Ingredients Inc. (NYSE:DAR) is a leader in converting edible and non-edible bionutrients into sustainable natural ingredients. On May 12, 2026, shares of Darling Ingredients Inc. (NYSE:DAR) closed at $62.26 per share. Darling Ingredients Inc. (NYSE:DAR)’s monthly performance was 6.01% and its shares gained 78.31% in the past 52 weeks. Darling Ingredients Inc. (NYSE:DAR) has a market capitalization of $10 billion.
Aristotle Core Equity Fund stated the following regarding Darling Ingredients Inc. (NYSE:DAR) in its Q1 2026 investor letter:
“Darling Ingredients Inc. (NYSE:DAR) contributed to first-quarter performance as the stock continued to show momentum ahead of the end of the Environmental Protection Agency’s Renewable Volume Obligation (RVO), which occurred in the final days of March. “The RVO exceeded expectations and bodes well for the continued improvement of renewable diesel margins for Darling’s joint venture, Diamond Green Diesel.”
Darling Ingredients Inc. (NYSE:DAR) isn’t on our list of the 40 most popular stocks among hedge funds heading into 2026. According to our database, 47 hedge fund portfolios held Darling Ingredients Inc. (NYSE:DAR) at the end of the fourth quarter, up from 51 in the prior quarter. In the first quarter of 2026, Darling Ingredients Inc. (NYSE:DAR) reported total sales of $1.6 billion compared to $1.4 billion in the first quarter of 2025. While we recognize the potential of Darling Ingredients Inc. (NYSE:DAR) as an investment, we believe certain AI stocks offer greater growth 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.