LongMRCYJune 30, 2026

Aristotle Small Cap Equity Fund on Mercury Systems

Thesis

Mercury Systems supplies mission-critical computing, signal processing, software and secure electronics for aerospace and defense customers. Aristotle believes the company is emerging from a multi-year operational reset as execution improves, margins expand and leverage declines. Strong underlying aerospace and defense demand combined with what the fund sees as an attractive valuation relative to normalized earnings power supports further shareholder value creation.

We maintain our position as we believe Mercury Systems is emerging from a multi-year operational reset, with improving execution, expanding margins and lower leverage.
Aristotle Small Cap Equity Fund — Aristotle Small Cap Equity Fund Commentary