Artisan Mid Cap Fund Trimmed Tyler Technologies (TYL) Due To Elevated Valuation

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was -5.28%, and its shares lost 14.65% of their value over the last 52 weeks. On October 15, 2025, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $502.05 per share, with a market capitalization of $21.72 billion.

Artisan Mid Cap Fund stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its third quarter 2025 investor letter:

“Notable trims in the quarter included Arista Networks, Snowflake and Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies provides end-to-end information management solutions and services for local government offices. When we purchased the stock in 2020, our investment thesis focused on its potential for durable growth, driven by the resilience of its end markets and the opportunity presented by its transition to cloud based subscriptions. As anticipated, the shift to the cloud has accelerated revenue growth and contributed to margin expansion. We trimmed our position during the quarter as the stock’s valuation increasingly reflected these benefits, but we continue to hold it in the CropSM.”

Is Tyler Technologies, Inc. (TYL) the Best Big Data Stock to Buy According to Analysts?

Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the second quarter, up from 44 in the previous quarter. In the second quarter of 2025, Tyler Technologies, Inc. (NYSE:TYL) reported $596.1 million in revenue, representing an increase of 10.2% compared to Q2 2024. While we acknowledge the risk and potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Tyler Technologies, Inc. (NYSE:TYL) and shared The Brown Capital Management Small Company Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.