Aristotle Capital Value Equity Strategy Sold Constellation Brands (STZ) Despite Steady Business Rationale

3 weeks ago 13

Soumya Eswaran

Wed, February 4, 2026 astatine 6:59 AM CST 3 min read

Aristotle Capital Management, LLC, an concern absorption company, released its “Value Equity Strategy” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. equity markets deed caller all-time highs successful Q4 2025, with the S&P 500 Index up 2.66% and the Bloomberg U.S. Aggregate Bond Index rising 1.10%. Value stocks outperformed maturation stocks, and the U.S. system showed resilience. Artificial quality was a large theme, with implicit 300 S&P 500 companies mentioning "AI" successful net calls, boosting mega-cap tech stocks. However, concerns arose astir AI gross circularity, superior spending, and semipermanent concern returns. Against this backdrop, the Composite returned 1.45% axenic gross of fees (0.95% nett of fees), lagging the Russell 1000 Value Index’s 3.8% summation and the S&P 500 Index’s 2.66% gain. Please reappraisal the Strategy’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Aristotle Capital Value Equity Strategy highlighted stocks similar Constellation Brands, Inc. (NYSE:STZ). Constellation Brands, Inc. (NYSE:STZ) is simply a starring US-based shaper of beer, wine, and spirits. On February 3, 2026, Constellation Brands, Inc. (NYSE:STZ) banal closed astatine $160.62 per share. Constellation Brands, Inc. (NYSE:STZ) delivered a 14.33% instrumentality successful the past month, and its shares are down 7.08% implicit the past 12 months. Constellation Brands, Inc. (NYSE:STZ) has a marketplace capitalization of $27.963 billion.

Aristotle Capital Value Equity Strategy stated the pursuing regarding Constellation Brands, Inc. (NYSE:STZ) successful its 4th fourth 2025 capitalist letter:

"We archetypal invested successful Constellation Brands, Inc. (NYSE:STZ), the premium beer, vino and spirits company, successful the 4th fourth of 2021. At the time, we believed the institution was good positioned to payment from its ascendant stock of the fast-growing Mexican imports conception of U.S. beer, supported by iconic brands specified arsenic Modelo, Corona and Pacifico, hard-to-replicate accumulation assets successful Mexico, and a absorption squad with a beardown way grounds of gathering brands and selling imported brands to mainstream U.S. consumers and expanding distribution. Over our holding period, Constellation continued to payment from the increasing popularity of Mexican brew successful the U.S and its halfway brew conception remained a wide root of strength. However, the timing and magnitude of respective cardinal catalysts evolved. Expansion of support abstraction and wide organisation progressed much dilatory than expected, portion betterment successful the Wine & Spirits conception proved much challenging, pushing meaningful borderline betterment further into the future. As a result, portion the semipermanent strategical rationale for the concern remains intact, we determined that Constellation was the astir due campaigner for merchantability to money a caller concern successful the archetypal 4th of 2026, to beryllium discussed successful greater item adjacent quarter."