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 stocks like EHealth, Inc. (NASDAQ:EHTH). EHealth, Inc. (NASDAQ:EHTH) is an online health insurance platform. On February 13, 2026, EHealth, Inc. (NASDAQ:EHTH) stock closed at $1.70 per share. One-month return of EHealth, Inc. (NASDAQ:EHTH) was -53.55%, and its shares are down 84.74% over the past twelve months. EHealth, Inc. (NASDAQ:EHTH) has a market capitalization of $52.45 million.
Aristotle Small Cap Equity Fund stated the following regarding EHealth, Inc. (NASDAQ:EHTH) in its fourth quarter 2025 investor letter:
“EHealth, Inc. (NASDAQ:EHTH) is a provider of Internet-based health insurance agency services for individuals, families and small businesses operating through Medicare, employer and individual business segments. The position was liquidated due to deteriorated fundamental performance and an uncertain strategic outlook.”
EHealth, Inc. (NASDAQ:EHTH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 18 hedge fund portfolios held EHealth, Inc. (NASDAQ:EHTH) at the end of the third quarter, compared to 19 in the previous quarter. While we acknowledge the potential of EHealth, Inc. (NASDAQ:EHTH) 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.
In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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