O’Reilly Automotive (ORLY) is Accelerating New Store Openings in 2026

Market Overview - U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10% [1] - The Russell 1000 Growth Index saw healthcare, communication services, and financials as the top performing sectors, while utilities, real estate, and materials lagged [1] - The U.S. economy showed resilience, but consumer confidence deteriorated toward year-end, raising concerns about future spending and the labor market [1] - The Federal Reserve adopted a cautious approach due to mixed economic signals and uncertainty around data [1] - Artificial intelligence remained a significant theme in the market [1] Fund Performance - The Aristotle Core Equity Fund (Class I-2) returned 3.15% in Q4 2025, outperforming the S&P 500 Index's 2.66% return [1] - Both allocation effects and security selection contributed to the Fund's outperformance in the quarter [1] Company Focus: O'Reilly Automotive, Inc. - O'Reilly Automotive, Inc. (NASDAQ:ORLY) is a leading automotive parts retailer with a market capitalization of $77.092 billion [2] - As of February 26, 2026, O'Reilly's stock closed at $91.33 per share, with a one-month return of -7.19% and a 52-week loss of 0.27% [2] - O'Reilly Automotive detracted from performance in Q4 2025, despite exceeding consensus expectations in its third-quarter results [3] - Concerns arose regarding the weakening do-it-yourself (DIY) business, influenced by inflation driven by tariffs [3] - The professional business segment remains strong, and the company plans to increase the pace of new store openings in 2026 [3] Hedge Fund Interest - O'Reilly Automotive, Inc. was held by 69 hedge fund portfolios at the end of Q4 2025, down from 75 in the previous quarter [5] - While O'Reilly is acknowledged as a potential investment, certain AI stocks are believed to offer greater upside potential and carry less downside risk [5]