Should You Invest in LKQ Corporation (LKQ)?

Core Viewpoint - The Aristotle Small Cap Equity Fund reported modest gains in U.S. small-cap equities during Q4 2025, driven by a positive macroeconomic environment and attractive valuations, although it trailed the Russell 2000 Index return [1]. Fund Performance - The Aristotle Small Cap Equity Fund (Class I-2) achieved a return of 1.96% in Q4 2025, compared to a 2.19% total return of the Russell 2000 Index [1]. - Security selection positively impacted overall performance, while allocation effects had a negative impact [1]. Company Focus: LKQ Corporation - LKQ Corporation (NASDAQ:LKQ) was highlighted as a recent addition to the fund's portfolio, recognized as a leading distributor of alternative and specialty auto parts [2]. - As of February 13, 2026, LKQ Corporation's stock closed at $34.10 per share, with a one-month return of 1.76% and a decline of 12.81% over the past twelve months [2]. - LKQ Corporation has a market capitalization of $8.774 billion [2]. Competitive Advantages of LKQ Corporation - LKQ Corporation is noted for its market leadership in alternative collision repair parts, benefiting from scale advantages that allow for volume purchase discounts and a wider distribution network [3]. - The company has invested in technology and logistics improvements, enhancing its competitive position against smaller rivals [3]. Hedge Fund Interest - LKQ Corporation was held by 49 hedge fund portfolios at the end of Q3 2025, an increase from 32 in the previous quarter, indicating growing interest among institutional investors [4]. - Despite its potential, the company is not considered among the top 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4].