Overview
- Artisan reported strong second-quarter returns of about 26% that modestly beat the Russell 2000 Growth Index, reflecting a rebound in global equities led by heavy AI investment.
- The letter says the fund stayed constructive on small-cap opportunities, with new emphasis on AI infrastructure and health care as areas likely to drive profit-cycle gains.
- Portfolio moves on July 24 included a trim of Ascendis Pharma after a competitor lawsuit raised distraction risks, a harvest of gains in MACOM as its market cap moved beyond small-cap limits, and a trim of Installed Building Products after weaker results.
- The team added to Lattice Semiconductor after stronger-than-expected results, raised guidance and a $1 billion AMI acquisition, and it initiated or boosted positions in Virtu Financial and USA Rare Earth following management and M&A catalysts.
- Artisan framed these actions as active risk management in a market where a narrow group of AI beneficiaries drove benchmarks, a pattern that can disadvantage quality-focused, diversified managers and raise the value of Western-hemisphere rare-earth supply chains.