Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index’s -9.48% total return. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 25.94%, and its shares gained 21.50% of their value over the last 52 weeks. On May 15, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $122.53 per share with a market capitalization of $9.115 billion.
Aristotle Capital Small Cap Equity Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2025 investor letter:
“MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), a designer and manufacturer of high-performance semiconductor products, declined along with the broader semiconductor industry during the quarter. We maintain our position, as we believe the company’s meaningful exposure to growing demand from Data Center and 5G end market applications along with the integration of recent acquisitions should drive additional shareholder value in periods to come.”
An aerial view of a semiconductor factory, with its intricate machinery and equipment.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the fourth quarter which was 23 in the previous quarter. In the second quarter of 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported record revenue of $235.9 million, up 8.1% sequentially. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) 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 undervalued AI stock set for massive gains.
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