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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 Agree Realty Corporation (NYSE:ADC). Agree Realty Corporation (NYSE:ADC) is a publicly traded real estate investment trust that is RETHINKING RETAIL. The one-month return of Agree Realty Corporation (NYSE:ADC) was -6.49%, and its shares gained 22.47% of their value over the last 52 weeks. On May 15, 2025, Agree Realty Corporation (NYSE:ADC) stock closed at $73.92 per share with a market capitalization of $8.158 billion.
Aristotle Capital Small Cap Equity Strategy stated the following regarding Agree Realty Corporation (NYSE:ADC) in its Q1 2025 investor letter:
"Agree Realty Corporation (NYSE:ADC), is a real estate investment trust that owns, manages and develops primarily neighborhood community shopping centers and single tenant properties leased to major retail tenants such as Sherwin Williams, Wal-Mart and TJX Companies. We believe the company’s high-quality portfolio, recession resistant retail categories and strong balance sheet coupled with management’s proactive tenant management and acquisition pipeline will benefit the company on a go-forward basis."
A city skyline with multiple office buildings, symbolizing the company's diverse investments in real estate.
Agree Realty Corporation (NYSE:ADC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Agree Realty Corporation (NYSE:ADC) at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the potential of Agree Realty Corporation (NYSE:ADC) 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.