Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small/mid-cap equities reported solid results in the third quarter, driven by a favorable macroeconomic backdrop. In the third quarter, the strategy delivered a return of 2.57% net of fees (3.07% gross of fees), underperforming the 9.00% total return of the Russell 2500 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, Aristotle Capital Small/Mid 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 12.47%, and its shares gained 30.17% of their value over the last 52 weeks. On October 31, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $148.13 per share, with a market capitalization of $11.031 billion.
Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its third quarter 2025 investor letter:
“MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) , is a designer and manufacturer of high-performance semiconductor products. Despite reporting strong Q3 earnings, the stock declined as investors reacted to a slight margin impact from a recent acquisition and a slower-than-expected recovery in the industrial market—both short-term deviations from analyst forecasts. 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 and domestic manufacturing footprint should drive additional shareholder value in periods to come.”
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the second quarter, which was 36 in the previous quarter. While we acknowledge 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 also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
