Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Small Cap Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. Despite strong results in 2025, volatility was elevated, and sentiment shifted frequently, influenced by political developments in the US, evolving trade policy rhetoric, changing expectations for monetary policy, and ongoing geopolitical tensions. Against this backdrop, the Fund posted strong absolute returns in the fourth quarter, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index. The portfolio delivered strong results in the quarter across all segments. In contrast, for the full year, the Fund generated strong results but trailed both the indexes. In Q4 2025, the market leadership shifted back to companies with durable profit cycles. Moving to 2026, the firm continues to focus on its proven technique of identifying profit cycles in franchise companies at reasonable valuations. 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 Small Cap Fund highlighted stocks like Cellebrite DI Ltd. (NASDAQ:CLBT). Headquartered in Petah Tikva, Israel, Cellebrite DI Ltd. (NASDAQ:CLBT) is a digital forensics company that offers DI suite of solutions to law enforcement, military, and other customers. On March 16, 2026, Cellebrite DI Ltd. (NASDAQ:CLBT) stock closed at $14.40 per share. One-month return of Cellebrite DI Ltd. (NASDAQ:CLBT) was 0.70%, and its shares lost 22.25% over the past 52 weeks. Cellebrite DI Ltd. (NASDAQ:CLBT) has a market capitalization of $3.592 billion.
Artisan Small Cap Fund stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its fourth quarter 2025 investor letter:
“During the quarter, we initiated new positions in nLIGHT, Guardant Health and Cellebrite DI Ltd. (NASDAQ:CLBT). Cellebrite provides digital forensics software that helps law enforcement, governments and enterprises access and analyze data from devices and cloud sources. We added the company to the GardenSM after identifying a new product cycle that could shift its business from point solutions to a broader, integrated platform. Expert calls reinforced our view of Cellebrite’s durable franchise. In early 2025, budget-related constraints on government spending created a temporary headwind, mainly from public sector clients. We expect this segment to resume growth in 2026 as budgets normalize.”
Cellebrite DI Ltd. (NASDAQ:CLBT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Cellebrite DI Ltd. (NASDAQ:CLBT) at the end of the fourth quarter, up from 31 in the previous quarter. In Q4 2025, Cellebrite DI Ltd.’s (NASDAQ:CLBT) revenue grew 18% year-over-year to $128.8 million. While we acknowledge the risk and potential of Cellebrite DI Ltd. (NASDAQ:CLBT) 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 Cellebrite DI Ltd. (NASDAQ:CLBT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Cellebrite DI Ltd. (NASDAQ:CLBT) and shared Voss Capital’s views on the company. 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.
