Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index’s -9.48% total return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Alamos Gold Inc. (NYSE:AGI). Alamos Gold Inc. (NYSE:AGI) is a gold producer primarily explores for gold deposits. The one-month return of Alamos Gold Inc. (NYSE:AGI) was -17.04%, and its shares gained 43.59% of their value over the last 52 weeks. On May 15, 2025, Alamos Gold Inc. (NYSE:AGI) stock closed at $24.54 per share with a market capitalization of $10.321 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Alamos Gold Inc. (NYSE:AGI) in its Q1 2025 investor letter:

"Alamos Gold Inc. (NYSE:AGI), engages in the exploration, development, mining and extraction of precious metals. The company benefited from rising gold prices as investors purchased the commodity as an inflation hedge. We maintain our investment as we believe in the company’s lower geopolitical risk profile, solid production growth plan from 600k oz to 1M oz per year over the next five years, and strong operational track record."Why Alamos Gold Inc. (AGI) Went Up On Thursday?

Aerial view of a gold mine with equipment mining the earth for resources.

Alamos Gold Inc. (NYSE:AGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Alamos Gold Inc. (NYSE:AGI) at the end of the fourth quarter which was 30 in the previous quarter. In Q1 2025, Alamos Gold Inc. (NYSE:AGI) produced 125,000 ounces of gold, consistent with the low end of guidance. While we acknowledge the potential of Alamos Gold Inc. (NYSE:AGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

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In another article, we covered Alamos Gold Inc. (NYSE:AGI) and shared the list of best gold stocks to invest in according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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