Aristotle Core Equity Fund Picked Coinbase Global (COIN) Due to Diverse Growth Signals

Aristotle Funds, an investment advisor, released its “Core Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. 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%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed resilience. However, consumer confidence deteriorated toward year-end, raising concerns about future spending and the labor market. The Federal Reserve took a cautious approach due to mixed economic signals and uncertainty around data. Artificial intelligence remained a significant theme of the market. In this environment, the Aristotle Core Equity Fund (Class I-2) returned 3.15% in the quarter compared to the S&P 500 Index’s 2.66% return. Both allocation effects and security selection contributed to the outperformance 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 fourth-quarter 2025 investor letter, Aristotle Core Equity Fund highlighted Coinbase Global, Inc. (NASDAQ:COIN). Coinbase Global, Inc. (NASDAQ:COIN) is a platform for crypto assets that enables users to trade and manage crypto assets. On February 26, 2026, Coinbase Global, Inc. (NASDAQ:COIN) stock closed at $181.06 per share. One-month return of Coinbase Global, Inc. (NASDAQ:COIN) was -7.02%, and its shares lost 16.03% over the past 52 weeks. Coinbase Global, Inc. (NASDAQ:COIN) has a market capitalization of $48.824 billion.

Aristotle Core Equity Fund stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its fourth quarter 2025 investor letter:

"Coinbase Global, Inc. (NASDAQ:COIN) was founded in 2012 and is a leading United States cryptocurrency exchange and infrastructure provider. With over $425 billion in assets across its platform, the company supports trading in more than 250 crypto currencies, catering to retail investors, institutions and fintech developers through a diversified cryptocurrency product and service platform. Coinbase operates as a remote-first (no physical headquarters) entity with a focus on regulatory compliance, strong cybersecurity and proactive regulatory engagement, differentiating it within the cryptocurrency ecosystem.

We see Coinbase as the dominant player in the U.S. cryptocurrency market, holding over 65% of the trading volume share due to its strong commitment to compliance, security, and customer trust. The company’s expansion into derivatives and international markets, including the acquisition of Deribit, positions it as a leading global crypto derivatives provider. Coinbase’s diversified business model, which includes transaction-based activities and subscription-based offerings, is shifting towards more predictable revenue streams. The recent passage of the GENIUS Act and the anticipated CLARITY Act are expected to provide regulatory clarity, boosting institutional adoption and trading volumes. Additionally, Coinbase’s unique infrastructure and partnerships with traditional finance institutions enable it to monetize the comprehensive cryptocurrency value chain. Shares trade at a modest premium to traditional exchange peers. We view this premium as justified by the company’s dominant U.S. market position, scalable crypto infrastructure, and ongoing shift toward recurring revenue streams, supported by strong secular tailwinds and upcoming catalysts, while reflecting competitive and regulatory risks."

Coinbase Global, Inc. (NASDAQ:COIN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Coinbase Global, Inc. (NASDAQ:COIN) at the end of the fourth quarter, compared to 73 in the previous quarter. In Q4 2025, Coinbase Global, Inc. (NASDAQ:COIN) reported total revenue of $1.8 billion, down 5% from Q3 2025. While we acknowledge the potential of Coinbase Global, Inc. (NASDAQ:COIN) 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 Coinbase Global, Inc. (NASDAQ:COIN) and shared a list of best stocks to buy for long-term growth. 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.