Aristotle Atlantic Core Equity Strategy Sold ServiceNow (NOW) to Reduce Software Exposure

Market Overview - The US equity market experienced a rally in the third quarter of 2025, with the S&P 500 Index increasing by 8.12% [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% during the same period [1] Performance Analysis - The composite return for Aristotle Atlantic's Core Equity Strategy was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's 8.12% gain [1] - The underperformance was attributed to security selection within the strategy [1] Company Focus: ServiceNow, Inc. - ServiceNow, Inc. (NYSE:NOW) is highlighted as a key stock, offering intelligent workflow automation solutions [2] - The stock experienced a one-month return of -5.97% and a 52-week decline of 15.99%, closing at $849.69 per share with a market capitalization of $176.295 billion on November 13, 2025 [2] Strategic Decisions - The company sold its holdings in ServiceNow, Inc. and reduced its subsector overweight in Software due to perceived macroeconomic risks and shifts in software spending towards AI and LLM-leveraged solutions [3] - Despite acknowledging ServiceNow's potential, the company believes that certain AI stocks present greater upside potential with less downside risk [3] Financial Performance - ServiceNow's third-quarter subscription revenues reached $3.299 billion, reflecting a year-over-year growth of 20.5% in constant currency [3]