Aristotle Growth Fund Sells Alexandria Real Estate Equities Stake After 46.4% Slide
Aristotle Growth Equity Fund sold its Alexandria Real Estate Equities stake after Q4 2025 underperformance, returning 0.95% versus the Russell 1000 Growth Index’s 1.12%, citing a 46.44% share decline over the past 52 weeks. The fund highlighted persistent lab-space oversupply, weak biotech fundraising and slow FDA approvals undermining leasing demand.
1. Fund Performance and Sale
Aristotle Growth Equity Fund generated a 0.95% return in Q4 2025, underperforming the Russell 1000 Growth Index’s 1.12%. The fund sold its entire Alexandria Real Estate Equities position, citing prolonged weakness in the laboratory real estate sector and significant share depreciation.
2. Lab-Space Market Challenges
Persistent oversupply of vacant lab space, weak biotech fundraising, slow FDA approvals and reduced NIH funding have eroded leasing demand. ARE has multiple life science facilities under construction that will be delivered into this weak market, potentially reducing future earnings power.