Aristotle Small Cap Equity Fund on Huron Consulting Group
Thesis
Huron Consulting provides technology, data and analytics solutions to healthcare, education and corporate clients. Shares declined despite strong operating results because investors feared artificial intelligence could cannibalize the business model, a concern Aristotle considers overly pessimistic. The fund expects durable demand, margin expansion and secular growth arising from increasing digital and regulatory complexity across Huron's end markets.
“We maintain a position, as we believe the company may continue to benefit from durable demand, expanding margins and secular growth.”
Key risks
- Artificial intelligence could reduce demand for parts of Huron's existing business model