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Artisan Mid Cap Fund’s Q4 Letter Details Repositioning Around AI and Defense, Beating Benchmark

Managers attribute exits and additions to AI demand, competitive threats, valuation.

Overview

  • Artisan reported Q4 2025 returns of -0.44% for its Investor Class versus -3.70% for the Russell Midcap Growth Index, noting tailwinds in information technology and health care.
  • Top contributors were Argenx, Coherent and Insmed, while Roblox, Veeva and Spotify were the largest detractors, with Roblox shares sliding despite sharp growth in revenue and bookings.
  • The fund exited Snowflake and Veeva citing elevated valuations and rising AI‑related competitive risks, and it also closed Ferguson as the risk‑reward became less compelling.
  • New positions included Astera Labs, L3Harris and Carvana, and the fund added to MongoDB, ServiceTitan and Waters, highlighting AI‑driven data‑center demand, defense programs and MongoDB’s Atlas platform as key drivers.
  • Coherent, MACOM and iRhythm were trimmed on valuation discipline following strong performance and improving outlooks, while the team maintained conviction in longer‑term growth opportunities.