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% and the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] - Aristotle Atlantic's Large Cap Growth strategy achieved a return of 9.76% gross of fees (9.61% net of fees), underperforming the Russell 1000 Growth Index which returned 10.51% [1] Performance Analysis - Security selection was identified as the primary reason for the relative underperformance of Aristotle Atlantic's Large Cap Growth strategy during the quarter [1] Tesla, Inc. Insights - Tesla, Inc. (NASDAQ:TSLA) was highlighted in the investor letter, with a one-month return of -9.63% and a 52-week gain of 19.37% [2] - As of November 14, 2025, Tesla's stock closed at $404.35 per share, with a market capitalization of $1.345 trillion [2] - Tesla's performance negatively impacted the strategy's returns due to an underweight position relative to the benchmark, despite the stock performing well in the third quarter [3] - Tesla reported a 23% decline in earnings for Q2 2025, which was worse than consensus estimates, although Q3 electric vehicle sales exceeded expectations due to expiring tax credits [3] - The narrative surrounding Tesla has shifted towards the anticipated widespread adoption of robotaxis and the launch of a humanoid robotics company, despite three years of deteriorating fundamentals in the auto business [3] Hedge Fund Interest - Tesla, Inc. ranked 23rd on the list of the 30 Most Popular Stocks Among Hedge Funds, with 115 hedge fund portfolios holding the stock at the end of Q2 2025, an increase from 104 in the previous quarter [4] - While Tesla is recognized for its investment potential, certain AI stocks are suggested to offer greater upside potential and lower downside risk [4]