Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for the “Artisan Mid Cap Fund”. A copy of the letter is available to download here. In Q1 2026, the Artisan Mid Cap Fund reported negative absolute returns but slightly outperformed the Russell Midcap® Growth Index. The market favored lower volatility and income-oriented equities, with value outpacing growth significantly. Despite challenges for growth strategies, selective stock choices in sectors like industrials and healthcare provided strength, while consumer discretionary faced weaknesses. Mid- and small-cap indices showed resilience amid lagging large-cap growth stocks. The escalating conflict in Iran influenced market behavior, and AI-related investments continued to support capital spending and earnings. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Fund highlighted stocks like Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) is an online gaming and virtual experience platform, supported by AI-driven innovation and infrastructure advantages. On May 8, 2026, Roblox Corporation (NYSE:RBLX) stock closed at $41.91 per share. One-month return of Roblox Corporation (NYSE:RBLX) was -27.32%, and its shares lost 42.97% over the past 52 weeks. Roblox Corporation (NYSE:RBLX) has a market capitalization of $30.00 billion.
Artisan Mid Cap Fund stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q1 2026 investor letter:
“Our biggest detractors in Q1 were DoorDash, MongoDB and Roblox Corporation (NYSE:RBLX. ROBLOX is a leading user-generated content platform with strong global growth and operating leverage, supported by AI-driven innovation and infrastructure advantages. The company delivered another strong quarter, with continued user and bookings growth, though momentum moderated from peak levels following an exceptionally strong prior period driven by viral hit games such as Grow a Garden and Steal a Brainrot. Guidance remained solid despite difficult comparisons, supported by continued investment in AI-enabled creation tools, discovery and platform expansion, as well as early traction from age verification features. While shares have declined amid uncertainty about sustaining engagement and broad AI-related concerns, we believe the platform’s network effects and product roadmap position it well for continued growth. We added to the position during the quarter.”
Roblox Corporation (NYSE:RBLX) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 84 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the fourth quarter, compared to 90 in the previous quarter. In the first quarter of 2026, Roblox Corporation (NYSE:RBLX) generated revenue of $1.4 billion, grew 39% year over year. While we acknowledge the risk and potential of Roblox Corporation (NYSE:RBLX) 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 Roblox Corporation (NYSE:RBLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Roblox Corporation (NYSE:RBLX) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
