Here’s Why Aristotle Atlantic’s Core Equity Strategy Sold Halliburton Company (HAL)

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% [1] Performance Analysis - The composite return for the quarter was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's gain of 8.12% [1] - The underperformance of the strategy was attributed to security selection [1] Company Focus: Halliburton Company (NYSE:HAL) - Halliburton Company had a one-month return of 20.69%, but its shares declined by 10.34% over the past 52 weeks [2] - As of November 14, 2025, Halliburton's stock closed at $27.30 per share, with a market capitalization of $22.98 billion [2] Investment Decisions - The strategy sold Halliburton Company shares to invest in Baker Hughes, citing expected headwinds in the U.S. completion and pumping business due to declining onshore activity and pricing weakness [3] - Halliburton Company was held by 44 hedge fund portfolios at the end of Q2 2025, down from 54 in the previous quarter [3] - The strategy suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Halliburton [3]