Aristotle Capital Boston, LLC, an investment advisor, released its Small Cap Equity Fund Q2 2026 investor letter. A copy of the letter can be downloaded here. The fund returned 13.69% in the second quarter of 2026, trailing the Russell 2000 Index's 21.49% gain as security selection in information technology and industrials weighed on performance despite positive allocation effects.

Top contributors included MACOM Technology Solutions and Mercury Systems, which benefited from strong demand in semiconductor, aerospace, and defense markets. Alamos Gold and Huron Consulting Group detracted from results because of operational challenges, weaker gold prices, and investor concerns surrounding artificial intelligence disruption.

During the quarter, the fund initiated positions in IPG Photonics and UMB Financial, citing opportunities tied to advanced manufacturing, automation, reshoring trends, and diversified financial services. It also exited Americold Realty Trust, Byline Bancorp, and Verra Mobility. Looking ahead, management remained constructive on U.S. small-cap equities, saying valuations remain attractive relative to large caps and that earnings growth is expected to accelerate into late 2026 and 2027. The firm also pointed to increased merger and acquisition activity, improving domestic manufacturing due to reshoring and infrastructure investments, and a favorable regulatory environment as factors that may support the asset class over the long term.

In its second-quarter 2026 investor letter, Aristotle Small Cap Equity Fund highlighted Americold Realty Trust, Inc. (NYSE: COLD). Americold Realty Trust, Inc. (NYSE:COLD) owns and operates temperature-controlled warehouses and provides cold-chain logistics services for the global food supply chain. The company ranks among the largest owners and operators of temperature-controlled warehouses in the world, and its facilities sit between food producers, distributors, and grocery retailers, storing and handling perishable goods before they reach stores and restaurants. Its quarterly results are reported around measures such as warehouse occupancy and pallet throughput, which track demand for cold-chain capacity. The one-month return of Americold Realty Trust, Inc. (NYSE:COLD) was 7.38%, while its shares traded between $10.10 and $16.88 over the last 52 weeks. On August 19, 2026, Americold Realty Trust, Inc. (NYSE:COLD) stock closed at approximately $15.08 per share, with a market capitalization of about $4.35 billion.

Aristotle Small Cap Equity Fund stated the following regarding Americold Realty Trust, Inc. (NYSE:COLD) in its Q2 2026 investor letter:

Americold Realty Trust, Inc. (NYSE:COLD) is a real estate investment trust focused on the ownership, operation, development and acquisition of temperature-controlled warehouses. The position was liquidated due to deteriorating fundamentals.

The fund added that Americold Realty Trust, Inc. (NYSE:COLD) is not on its list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to the firm’s database, 34 hedge fund portfolios held Americold Realty Trust, Inc. (NYSE:COLD) at the end of the first quarter, down from 37 in the previous quarter.

While the fund acknowledged the risk and potential of Americold Realty Trust, Inc. (NYSE:COLD) as an investment, it said its conviction lies in the belief that some AI stocks have greater promise for delivering higher returns in a shorter time frame.

In another article, the firm covered Americold Realty Trust, Inc. (NYSE:COLD) and shared the company’s earnings call transcripts. It also directed readers to its hedge fund investor letters Q1 2026 page for more letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.