Slower-Than-Anticipated Regulatory Approvals Hurt Itron (ITRI) in Q4

Core Insights - U.S. small-cap equities experienced modest gains in Q4 2025, supported by attractive valuations, earnings recovery, and a shift from mega-cap stocks [1] - The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, underperforming the Russell 2000 Index's 2.19% total return [1] - Security selection positively impacted overall performance, while allocation effects detracted from it [1] Company-Specific Insights - Itron, Inc. (NASDAQ:ITRI) was identified as a major performance detractor for the Aristotle Small Cap Equity Fund in Q4 2025, with a one-month return of -10.68% and a 12-month decline of 7.88% [2] - Itron, Inc. has a market capitalization of $4.093 billion and is involved in manufacturing and distributing electric, water, and gas meters [2][3] - The stock sold off due to slower-than-anticipated regulatory approvals, but the company is expected to benefit from power grid modernization efforts in 2026 [3] - Itron, Inc. is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding its shares at the end of Q3 2025, an increase from 35 in the previous quarter [4] - While Itron, Inc. has potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]