Aristotle Capital Boston, LLC, in its Q4 2025 investor letter for the “Small Cap Equity Fund,” detailed its investment strategy and portfolio additions. The letter highlighted that U.S. small-cap equities experienced modest gains in the fourth quarter of 2025, buoyed by a positive macroeconomic environment, attractive valuations, earnings recovery, and a shift away from mega-cap stocks. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, slightly underperforming the Russell 2000 Index’s 2.19% total return. Security selection proved beneficial, while allocation effects detracted from overall performance. Cohen & Steers, Inc. (CNS), a real estate-focused investment management firm, was noted as a significant new addition to the fund’s holdings, indicating a strategic move by Aristotle Capital Boston to capitalize on CNS’s anticipated growth.
Cohen & Steers, Inc. (CNS) is an asset management holding company specializing in real estate investments for both institutional and retail clients. The firm’s performance has been influenced by fluctuating interest rates over recent years. Previously, an environment of rising interest rates combined with a strong equity market led to a period of subdued new business inflows. However, with interest rates trending downward and equity market valuations nearing historical highs, CNS has started to observe a rebound in new business activities. This shift is expected to foster renewed earnings growth for the company.
As of February 13, 2026, Cohen & Steers, Inc. (NYSE:CNS) stock closed at $66.66 per share. Its one-month return registered at -5.34%, and its shares have seen a 21.82% decline over the preceding twelve months. The company maintains a market capitalization of approximately $3.4 billion. Despite recent market movements, Aristotle Small Cap Equity Fund's decision to include CNS in its portfolio underscores confidence in the company's long-term prospects. This optimism is partly attributed to CNS's robust cash and cash equivalent reserves, which position it advantageously for potential acquisitions or share repurchase programs, further enhancing shareholder value.
The investment thesis presented by Aristotle Small Cap Equity Fund regarding Cohen & Steers emphasizes the cyclical nature of financial markets and the firm's strategic positioning within the real estate sector. The expectation of declining interest rates suggests a more favorable operating environment for real estate investments, potentially stimulating demand for CNS's specialized products. Furthermore, the company’s strong financial health provides a buffer against market volatility and enables opportunistic growth initiatives, such as expanding its asset base or returning capital to shareholders through buybacks.
While Cohen & Steers, Inc. (CNS) is not among the top 30 most popular stocks favored by hedge funds, according to available data, the number of hedge fund portfolios holding CNS increased to 27 by the end of the third quarter, up from 23 in the prior quarter. This growing interest suggests an increasing recognition among sophisticated investors of CNS's potential. Despite acknowledging CNS's investment potential, some analyses suggest that certain AI stocks might offer greater upside and lower downside risks, especially considering current market trends and specific economic policies.
The strategic inclusion of Cohen & Steers, Inc. (CNS) into Aristotle Small Cap Equity Fund's portfolio reflects a calculated belief in the firm's capacity for future appreciation, underpinned by a changing interest rate landscape and its strong operational foundation. The asset management company's focus on real estate, coupled with its financial flexibility, positions it to capture emerging opportunities and drive earnings growth. This makes CNS a noteworthy consideration for investors seeking exposure to the specialized real estate investment management sector.