Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Value Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in undervalued companies with solid financial health and compelling business economics. US equities continued to advance in the fourth quarter of 2025, despite volatility. At the start of the quarter, a government shutdown unsettled investors and delayed key economic data, raising questions about the Federal Reserve’s easing timeline. However, as the quarter progressed, risk appetite increased, and clarity around monetary policy improved, leading the Fed to implement rate cuts and end quantitative tightening. This suggests a continued easing of financial conditions into 2026. While AI remained a key focus, markets diversified in November, with value and non-AI stocks leading. This could indicate a shift in market leadership moving forward. Mid-cap stocks lagged large caps in Q4, particularly on the growth side, as the Russell Midcap® Growth Index declined 3.7% while mid-cap value posted a modest gain and outperformed the growth index for the quarter and full year. In the quarter, the fund’s Investor Class fund ARTQX returned 1.53%, Advisor Class fund APDQX posted a return of 1.54%, and Institutional Class fund APHQX returned 1.63%, compared to a 1.42% return for the Russell Midcap Value Index. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted First Citizens BancShares, Inc. (NASDAQ:FCNCA) as one of its leading contributors. First Citizens BancShares, Inc. (NASDAQ:FCNCA) is major bank based in North Carolina, which performed strongly following its 2023 acquisition of the failed Silicon Valley Bank. On March 31, 2026, First Citizens BancShares, Inc. (NASDAQ:FCNCA) closed at $1,884.66 per share. One-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was -4.47%, and its shares gained 1.35% over the past 52 weeks. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $22.301 billion.
Artisan Mid Cap Value Fund stated the following regarding First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its fourth quarter 2025 investor letter:
“Our top performers in the energy and financials sectors were NOV, a provider of oilfield equipment, technology and expertise, and First Citizens BancShares, Inc. (NASDAQ:FCNCA), a North Carolina-based bank. First Citizens had been a big winner following its 2023 acquisition of the failed Silicon Valley Bank (SVB); however, shares had trailed peers for muchof2025duetoassetsensitivity concerns, credit quality issues and a falling return on tangible common equity (ROTCE). These issues seem overblown. Asset sensitivity refers to assets (loans and other earning securities) repricing faster than liabilities (borrowings). First Citizens should soon be able to replace its 3.5% fixed-rated note from the FDIC issued to finance the SVB purchase with low-cost variable rate funding or deposits, reducing asset sensitivity. With regard to credit quality, First Citizens had exposure to the bankruptcy of First Brands, the US auto parts maker, though we believe First Brands is unlikely to represent a broader issue. Lastly, ROTCE has been temporarily depressed due to higher costs associated with regulatory capital requirements under Basel III. The stock has been moving higher since October, when it reported better-than-expected earnings driven by an acceleration in SVB-related activity. With shares trading at a significant discount to peers, a robust stock buyback program and the potential for improved ROTCE and loan growth, we remain investors.”
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 41 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of the fourth quarter, compared to 45 in the previous quarter. While we acknowledge the risk and potential of First Citizens BancShares, Inc. (NASDAQ:FCNCA) 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 First Citizens BancShares, Inc. (NASDAQ:FCNCA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered First Citizens BancShares, Inc. (NASDAQ:FCNCA) and shared a list of best affordable long-term stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.
