Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Monro, Inc. (NASDAQ:MNRO). Headquartered in Rochester, New York, Monro, Inc. (NASDAQ:MNRO) offers automotive undercar repair, and tire sales and services. The one-month return of Monro, Inc. (NASDAQ:MNRO) was 21.36%, and its shares lost 31.11% of their value over the last 52 weeks. On July 22, 2025, Monro, Inc. (NASDAQ:MNRO) stock closed at $16.65 per share, with a market capitalization of $499.024 million.
Aristotle Capital Small Cap Equity Strategy stated the following regarding Monro, Inc. (NASDAQ:MNRO) in its second quarter 2025 investor letter:
“Monro, Inc. (NASDAQ:MNRO), operates a chain of approximately 1,200 automotive repair and tire retail stores. Ongoing weak demand had weighed on the company’s profitability for longer than anticipated and with expectations for continued economic pressures for their core low-income customers, we decided to exit the position.”
A car in a service bay being inspected by a technician for a routine maintenance service.
Monro, Inc. (NASDAQ:MNRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Monro, Inc. (NASDAQ:MNRO) at the end of the first quarter, which was 21 in the previous quarter. In the fiscal fourth quarter of 2024, Monro, Inc.’s (NASDAQ:MNRO) sales decreased 4.9% to $295 million. While we acknowledge the potential of Monro, Inc. (NASDAQ:MNRO) 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 another article, we covered Monro, Inc. (NASDAQ:MNRO) and shared the list of underperforming stocks targeted by short sellers. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
