Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for “Artisan Value Fund”. A copy of the letter is available to download here. The Funds’ Investor Class: ARTLX, Advisor Class: APDLX, and Institutional Class: APHLX returned -3.54%, -3.50%. and 3.50%, respectively, in Q1 vs, 2.10% return for the Russell 1000® Value Index. Performance was impacted by a market favoring momentum-driven stocks over quality factors, alongside company-specific setbacks. In Q1 2026, the US equity market showed mixed results: large-cap indices declined, while mid- and small-cap stocks gained modestly, reflecting a gradual broadening in market participation. Volatility increased, driven by concerns over artificial intelligence and private credit, and further escalated due to the outbreak of conflict in Iran. Despite uncertainty, the Fund focuses on identifying companies that can create value through cycles, particularly where market dislocations provide attractive entry points. 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 Value Fund highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) as a new portfolio addition. Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology and retail company known for its leading online marketplace and cloud platform. On May 22, 2026, Amazon.com, Inc. (NASDAQ:AMZN) closed at $266.32 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 1.99%, and its shares gained 32.50% over the past 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $2.87 trillion.
Artisan Value Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“We initiated four new positions in Q1, an above-average pace of activity. Typically, we add 1–2 new positions per quarter, averaging 1.7 per quarter over the past 5 years. Increased market volatility and greater dispersion in US equities created more opportunities to invest in companies that meet our three margin of safety criteria: attractive business economics, sound financial condition and compelling valuation. We also used the increased volatility to upgrade overall portfolio quality. Our three largest new positions were Amazon.com, Universal Music Group (UMG) and IQVIA Holdings.
Amazon.com, Inc. (NASDAQ:AMZN) represents a high-quality, wide-moat franchise where near-term investment is potentially obscuring substantial long-term earnings power. The company’s core retail platform is underpinned by its logistics network built over decades and enhanced by significant investment during COVID that doubled the network. This infrastructure continues to drive efficiency gains and customer value, reinforcing Amazon’s dominant market position. Complementing this is AWS, the original hyperscale cloud platform and a critical profit engine, contributing roughly 60% of operating income. AWS remains a leading cloud platform and a key profit driver, with strong positioning in AI supported by proprietary chips such as Graviton and Trainium. Despite elevated capital expenditures tied to AI, logistics and other growth initiatives, Amazon’s financial position remains exceptionally strong, with significant net cash and a well-laddered debt profile. Current earnings understate normalized profitability, in our view, due to heavy reinvestment across multiple initiatives, including AI infrastructure, robotics and new delivery capabilities. As these investments mature, we believe both revenue growth and margins should expand. At our initial purchase, the stock traded near historic valuation lows relative to its earnings power, offering an opportunity to own a premium, structurally advantaged business at a market-like multiple, with potential additional upside from its fast-growing, high-margin advertising segment.”
Amazon.com, Inc. (NASDAQ:AMZN) is in top position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 381 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter, up from 332 in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) reported a strong Q1 2026, with revenue increasing 17% year-over-year to $181.5 billion. While we acknowledge the risk and potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of best stocks for a couch potato portfolio. 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.
