Multiple Catalysts Prompted Aristotle Small Cap Equity Fund's Primo Brands Corporation (PRMB) Addition

Aristotle Capital Boston, LLC, an investment advisor, released its fourth-quarter investor letter for “Small Cap Equity Fund”. A copy of the letter can be downloaded here. U.S. small-cap equities reported modest gains in the fourth quarter of 2025. The quarter started as a continuation of the post-Liberation Day risk-on market environment, while it ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, broadening of the market, and a shift from mega-cap stocks supported small caps in the quarter. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, trailing the 2.19% total return of the Russell 2000 Index. Security selection supported overall performance, while allocation effects detracted from performance. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Aristotle Small Cap Equity Fund highlighted Primo Brands Corporation (NYSE:PRMB) as a recent addition to its portfolio. Primo Brands Corporation (NYSE:PRMB) is a North American beverage company. On February 13, 2026, Primo Brands Corporation (NYSE:PRMB) stock closed at $18.96 per share. Primo Brands Corporation (NYSE:PRMB) delivered a -0.27% return in the past month, and its shares lost 43.44% of their value over the past twelve months. Primo Brands Corporation (NYSE:PRMB) has a market capitalization of $7.021 billion.

Aristotle Small Cap Equity Fund stated the following regarding Primo Brands Corporation (NYSE:PRMB) in its fourth quarter 2025 investor letter:

"Primo Brands Corporation (NYSE:PRMB) is a branded beverage company focused on healthy hydration. The company is the top player in U.S. bottled water with approximately 19% market share. The portfolio of brands is well diversified across distribution channels, product format, sizes and price points that allow the company to cost efficiently reach 90% of the U.S. population. Increasing consumption of bottled water should be supported by concerns about municipal tap water quality, the wellness movement leading to lower consumption of soda, juice, and alcoholic beverages, and innovation in water flavors and premium products attracting consumers toward the category."

Primo Brands Corporation (NYSE:PRMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 62 hedge fund portfolios held Primo Brands Corporation (NYSE:PRMB) at the end of the third quarter, compared to 72 in the previous quarter.  While we acknowledge the potential of Primo Brands Corporation (NYSE:PRMB) 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 Primo Brands Corporation (NYSE:PRMB) and shared a list of most promising low-cost stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.