Artisan Mid Cap Fund Trimmed Robinhood Markets (HOOD) Despite Its Long-Term Growth Potential

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned 14.40%, Advisor Class fund APDMX posted a return of 14.45%, and Institutional Class fund APHMX returned 14.50%, compared to a 18.20% return for the Russell Midcap Growth Index. Global markets experienced a significant but volatile Q2, rotating from double-digit declines to double-digit gains. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 7.04%, and its shares gained 495.88% of their value over the last 52 weeks. On August 7, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $105.65 per share, with a market capitalization of $93.889 billion.

Artisan Mid Cap Fund stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its second quarter 2025 investor letter:

“Notable trims in the quarter included Tradeweb, Robinhood Markets, Inc. (NASDAQ:HOOD) and Lattice Semiconductor. Robinhood has emerged as the go-to trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab’s 34 million). The company’s user base skews younger, with deposits growing significantly faster than the broader industry due to several drivers, including the rise of self-directed trading, the generational wealth transfer to millennials and increasing market share. As Robinhood’s customer base matures and accumulates wealth, we believe the company is well positioned to expand its product offerings to meet evolving financial needs. Furthermore, management’s focus on profitable growth and a 90% fixed cost structure suggests meaningful margin expansion potential. We trimmed our position on a rising valuation but continue to like the longer term potential of its new product initiatives and its expense discipline.”

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Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, which was 79 in the previous quarter.  Robinhood Markets, Inc. (NASDAQ: HOOD) reported revenues of $989 million in Q2 2025, indicating a 45% year-over-year growth driven by strong business performance. While we acknowledge the risk and potential of Robinhood Markets, Inc. (NASDAQ:HOOD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Robinhood Markets, Inc. (NASDAQ:HOOD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Robinhood Markets, Inc. (NASDAQ:HOOD) and shared the list of stocks Jim Cramer put under the spotlight. Ashva Capital Management highlighted Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q2 2025 investor letter and views it as a disruptive force in retail finance. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.