Aristotle Small Cap Equity Fund Sold Westinghouse Air Brake Technologies Corporation (WAB) as It Grew Beyond Small-Cap Space

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 noted stocks like Westinghouse Air Brake Technologies Corporation (NYSE:WAB).  Westinghouse Air Brake Technologies Corporation (NYSE:WAB) is a leading rail technology and equipment company that provides locomotives, equipment, systems, and services. On February 13, 2026, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) stock closed at $256.06 per share. One-month return of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) was 11.52%, and its shares are up 36.06% over the past twelve months. Westinghouse Air Brake Technologies Corporation (NYSE:WAB) has a market capitalization of about $43.775 billion.

Aristotle Small Cap Equity Fund stated the following regarding Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in its fourth quarter 2025 investor letter:

“Westinghouse Air Brake Technologies Corporation (NYSE:WAB) provides equipment, systems and value-added services for the rail industry. This was a long-time position that successfully grew from the small-cap space to a large-cap company beyond the Fund’s intended investment universe. We redeployed the capital to new positions that we believe present the opportunity for future upside potential.”

According to our database, 62 hedge fund portfolios held Westinghouse Air Brake Technologies Corporation (NYSE:WAB) at the end of the third quarter, compared to 68 in the previous quarter. Westinghouse Air Brake Technologies Corporation (NYSE:WAB) delivered $2.97 billion in sales for the fourth quarter of 2025, an increase of 14.8% YoY. While we acknowledge the potential of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) 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.