Robust Strength Aerospace and Defense Businesses Boosted ATI (ATI)

Loomis Sayles, an investment management company, released its “Small/Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with an extreme level of policy uncertainty but concluded with an all-time high for the S&P 500. In this environment, the fund lagged the Russell 2500 Growth Index benchmark in the quarter, returning 8.49% vs. 11.31% for the index. Security selection within the consumer discretionary and financials sectors led the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small/Mid Cap Growth Fund highlighted stocks such as ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is an industrial company that engages in the production and distribution of specialty materials and complex components. ATI Inc. (NYSE:ATI) stock gained 4.93% over the past month, and its shares rose 23.58% in value over the last 52 weeks. On September 12, 2025, ATI Inc. (NYSE:ATI) stock closed at $76.14 per share, with a market capitalization of $10.495 billion.

Loomis Sayles Small/Mid Cap Growth Fund stated the following regarding ATI Inc. (NYSE:ATI) in its second quarter 2025 investor letter:

ATI, Circle Internet Group and BWX Technologies were the top individual contributors to performance. ATI is a global supplier of melt and mill products to the aerospace & defense, oil and gas, electrical energy and medical markets. ATI continued to produce strong quarterly results in q1’25 as growth in its aerospace and defense businesses was robust. Furthermore, the company is bringing on new capacity in its titanium business, which we believe should allow it to grow faster in that segment over the next year.

ATI Inc. (NYSE:ATI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the second quarter, compared to 52 in the previous quarter. ATI Inc.’s (NYSE:ATI) second quarter revenue increased 4% year-over-year, to over $1.1 billion. While we acknowledge the potential of ATI Inc. (NYSE:ATI) 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 another article, we covered ATI Inc. (NYSE:ATI) and shared the list of best performing NYSE stocks according to analysts. In its Q2 2025 investor letter, Carillon Eagle Small Cap Growth Fund shared its optimistic view on ATI Inc. (NYSE:ATI). 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.