Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Aristotle Small/Mid Cap Equity Composite delivered a return of 0.93% net of fees, trailing the Russell 2500 Index’s 3.39% total return. Security selection drove the fund to underperform in the quarter while allocation effects positively contributed. Security selection in Energy, Communication Services, and Health Care contributed while holdings in Financials, Information Technology, and Industrials sectors detracted. From an allocation perspective, overweight exposures in Information Technology and Industrials helped the fund in the quarter, partially offset by underweights in Consumer Discretionary and Communication Services. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Small/Mid Cap Equity Strategy highlighted stocks like PacWest Bancorp (NASDAQ:PACW) in the first quarter 2023 investor letter. Headquartered in Beverly Hills, California, PacWest Bancorp (NASDAQ:PACW) is a bank holding company for Pacific Western Bank. On June 20, 2023, PacWest Bancorp (NASDAQ:PACW) stock closed at $7.65 per share. One-month return of PacWest Bancorp (NASDAQ:PACW) was 11.68%, and its shares lost 71.07% of their value over the last 52 weeks. PacWest Bancorp (NASDAQ:PACW) has a market capitalization of $919.844 million.
Aristotle Small/Mid Cap Equity Strategy made the following comment about PacWest Bancorp (NASDAQ:PACW) in its first quarter 2023 investor letter:
“PacWest Bancorp (NASDAQ:PACW), a West Coast relationship-based community bank focused on providing business banking and treasury management services to small, middle-market, and venture-backed businesses, was sold from the portfolio due to our belief that future shareholder value creation may be impeded by uncertainties related to the bank’s exposure to late-stage venture capital sponsored clients, and that the company’s risk/reward potential was no longer justified.”
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PacWest Bancorp (NASDAQ:PACW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held PacWest Bancorp (NASDAQ:PACW) at the end of first quarter 2023 which was 26 in the previous quarter.
We discussed PacWest Bancorp (NASDAQ:PACW) in another article and shared the list of best small cap bank stocks with dividends. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.