Aristotle Funds, an investment advisor, recently shared its fourth-quarter 2025 investor letter for the “Growth Equity Fund.” The letter highlighted the performance of U.S. equity markets, which reached new all-time highs during the quarter. The S&P 500 Index rose by 2.66%, while the Bloomberg U.S. Aggregate Bond Index increased by 1.10%. Among the sectors within the Russell 1000 Growth Index, healthcare, communication services, and financials performed well, while utilities, real estate, and materials lagged behind. Despite some concerns about consumer confidence and future spending, the U.S. economy demonstrated resilience.
The Aristotle Growth Equity Fund (Class I-2) returned 0.95% during the quarter, slightly underperforming the Russell 1000 Growth Index’s 1.12%. The fund attributed this underperformance to poor security selection in the information technology and consumer discretionary sectors. However, positive contributions from healthcare and industrials helped improve relative performance. For more detailed information on the fund’s top five holdings and best picks in 2025, the investor letter can be downloaded from Insider Monkey.
One of the stocks highlighted in the investor letter was Advanced Micro Devices, Inc. (NASDAQ:AMD). AMD is a leading semiconductor company known for designing and manufacturing AI accelerators, microprocessors, and graphics processing units. As of February 25, 2026, AMD’s stock price closed at $210.86 per share. The stock had a one-month return of -16.39% and had gained 111.90% over the past 52 weeks, with a market capitalization of $343.788 billion.
In the investor letter, Aristotle Growth Equity Fund discussed AMD’s performance in the fourth quarter of 2025. The stock experienced some challenges as investors questioned the viability of OpenAI’s capital spending plans and discounted future revenues associated with those plans. Overall sentiment towards AI semiconductor companies turned negative in December, leading to multiple compression for AMD and weakness relative to other technology stocks.
Despite these challenges, AMD remains a popular stock among hedge funds, with 132 hedge fund portfolios holding the stock at the end of the fourth quarter. In Q4 2025, AMD reported $10.3 billion in revenue, representing 34% growth year over year. While AMD has potential as an investment, some AI stocks may offer greater upside potential and lower downside risk according to the fund.
For more insights on AMD and other stocks, readers can explore additional articles on Insider Monkey, including lists of stocks discussed by Jim Cramer and hedge fund investor letters from Q4 2025. To stay updated on the best and worst Dow stocks for the next 12 months and unstoppable stocks that could double your money, readers can check out the related articles on the site.
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