Here’s Why Aristotle Core Equity Fund Bets on Tempus AI (TEM), a Healthcare Technology Company Soumya Eswaran May 14, 2026 4 min read ^GSPC Aristotle Capital Management, LLC, an investment management company, released its "Core Equity Fund" first-quarter 2026 investor letter. A copy of the letter can be downloaded here. During the first quarter, the U.S. equity market declined, with the S&P 500 Index falling by 4.33%.
The fixed-income sector also saw a downturn; the Bloomberg U.S. Aggregate Bond Index fell by 0.05%. In the quarter, the Fund (Class I-2) posted a total return of -4.45%, compared to the S&P 500 Index's -4.33% return.
The Fund's underperformance in the quarter was driven by the allocation effect, while security selection contributed positively. In this environment, the Fund continues to focus on companies experiencing secular tailwinds or robust product-driven cycles. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Aristotle Core Equity Fund highlighted Tempus AI, Inc. (NASDAQ:TEM) as a new addition. Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company that focuses on delivering precision medicine solutions through the use of AI and genomic data. On May 13, 2026, Tempus AI, Inc. (NASDAQ:TEM) closed at $45.90 per share.
One-month return of Tempus AI, Inc. (NASDAQ:TEM) was -14.86%, and its shares lost 25.98% over the past 52 weeks. Tempus AI, Inc. (NASDAQ:TEM) has a market capitalization of $8.31 billion. Aristotle Core Equity Fund stated the following regarding Tempus AI, Inc. (NASDAQ:TEM) in its Q1 2026 investor letter: "Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company specializing in AI-enabled precision medicine solutions.
By leveraging AI and machine learning, Tempus connects laboratory test results with clinical data to improve patient care across multiple diseases. The company operates through three main business units: Genomics (Diagnostics), which offers advanced genetic testing and diagnostics; Data and Services, which commercializes de-identified healthcare data and supports clinical trials; and AI Applications, which develops algorithmic diagnostics and clinical decision support tools. Tempus collaborates with leading pharmaceutical and biotechnology firms, positioning itself as a key innovator in both oncology and broader healthcare markets.
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