Should You Consider Selling Your Stake in JBG SMITH Properties (JBGS)?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as JBG SMITH Properties (NYSE:JBGS). JBG SMITH Properties (NYSE:JBGS) is a real estate investment trust that owns, operates, and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets. The one-month return of JBG SMITH Properties (NYSE:JBGS) was 12.30%, and its shares gained 14.36% of their value over the last 52 weeks. On July 22, 2025, JBG SMITH Properties (NYSE:JBGS) stock closed at $18.71 per share, with a market capitalization of $1.412 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding JBG SMITH Properties (NYSE:JBGS) in its second quarter 2025 investor letter:

"JBG SMITH Properties (NYSE:JBGS), a Washington, DC-focused real estate investment trust that develops, owns and operates a portfolio of mixed-use properties (multifamily, commercial, development and land assets). Concerns related to the company’s capital allocation plans along with deteriorating fundamentals in their core operating market prompted our decision to exit the position."

JBG SMITH Properties (NYSE:JBGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held JBG SMITH Properties (NYSE:JBGS) at the end of the first quarter, which was 14 in the previous quarter. While we acknowledge the potential of JBG SMITH Properties (NYSE:JBGS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.