Aristotle Capital Boston, LLC, an investment advisor, released its fourth-quarter investor letter for “Small Cap Equity Fund”. A copy of the letter can be downloaded here. U.S. small-cap equities reported modest gains in the fourth quarter of 2025. The quarter started as a continuation of the post-Liberation Day risk-on market environment, while it ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, broadening of the market, and a shift from mega-cap stocks supported small caps in the quarter. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, trailing the 2.19% total return of the Russell 2000 Index. Security selection supported overall performance, while allocation effects detracted from performance. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Aristotle Small Cap Equity Fund highlighted Patterson-UTI Energy, Inc. (NASDAQ:PTEN). Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an oilfield services company that provides drilling and completion services to oil and natural gas exploration and production companies. On February 13, 2026, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) stock closed at $8.10 per share. One-month return of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) was 13.29%, and its shares are down 9.19% over the past twelve months. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has a market capitalization of $3.075 billion.
Aristotle Small Cap Equity Fund stated the following regarding Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in its fourth quarter 2025 investor letter:
“Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an oilfield services company focused on drilling and pressure pumping solutions for both major oil companies and independent operators. The position was liquidated due to the energy market outlook weakening, thus deteriorating fundamental performance.”
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Patterson-UTI Energy, Inc. (NASDAQ:PTEN) at the end of the third quarter, same as in the previous quarter. While we acknowledge the potential of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) 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 also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
