Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its third-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Clearwater Analytics Holdings, Inc. (NYSE:CWAN). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) for investment analytics and reporting solutions. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was 4.88%, and its shares lost 35.20% of their value over the last 52 weeks. On November 17, 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $19.97 per share, with a market capitalization of $6.503 billion.
Artisan Small Cap Fund stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its third quarter 2025 investor letter:
“We ended our investment campaigns in Inspire Medical Systems, Astera Labs and Clearwater Analytics Holdings, Inc. (NYSE:CWAN) during the quarter. Clearwater Analytics provides cloud-based investment accounting, compliance and risk reporting solutions for insurers, corporations and asset managers. Recently, the company shifted its strategy from focusing on organic growth to pursuing larger scale M&A, deploying significant capital and taking on leverage. This pivot was not part of our original investment thesis, so we exited our multiyear campaign. Given the high quality of the franchise, we are keeping it on our watchlist, pending evidence that the company can successfully execute this new strategy.”
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the second quarter, which was 41 in the previous quarter. In the third quarter of 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported revenue of $205.1 million, reflecting an increase of 77% year-over-year. While we acknowledge the potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the second quarter, which was 41 in the previous quarter. In the third quarter of 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported revenue of $205.1 million, reflecting an increase of 77% year-over-year. While we acknowledge the risk and potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) 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 Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared the list of stocks on a hot streak. 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.
