Here’s What Made the Artisan Small Cap Fund Reinvest in Wingstop (WING)

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global markets saw an incredible but volatile second quarter, shifting from deep declines to strong gains. In the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of 7.33%, and Institutional Class fund APHSX returned 7.36%, compared to a return of 11.97% 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 second-quarter 2025 investor letter, the Artisan Small Cap Fund highlighted stocks such as Wingstop Inc. (NASDAQ:WING). Wingstop Inc. (NASDAQ:WING) is a restaurant company that operates under the brand name Wingstop. The one-month return of Wingstop Inc. (NASDAQ:WING) was 5.55%, and its shares lost 21.08% of their value over the last 52 weeks.  On August 21, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $318.77 per share, with a market capitalization of $8.901 billion.

Artisan Small Cap Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its second quarter 2025 investor letter:

“Notable buys in the quarter included BWX Technologies, Wingstop Inc. (NASDAQ:WING), and Madrigal Pharmaceuticals. Wingstop, a quick-service restaurant franchisor specializing in fresh, made-to-order chicken wings, sandwiches and sides, is a stock we have owned before and harvested due to our valuation discipline. It is in the early stages of expanding both domestically and internationally, supported by favorable franchisee economics and growing brand awareness. After a few consecutive quarters of same store sales missing heightened expectations, the stock was overly punished. This created a compelling opportunity for us to reinvest in a highly unique franchise with a solid long-term profit cycle growth profile, not only from domestic and international restaurant openings but also from menu innovation, national branding, partnerships with delivery providers and a value-focused bundling strategy that continues to resonate with customers.”

Was Jim Cramer Right About Wingstop Inc. (WING)?

Customers savoring boneless wings at a bustling restaurant owned by the company.

Wingstop Inc. (NASDAQ:WING) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the second quarter, which was 39 in the previous quarter. Wingstop Inc.’s (NASDAQ:WING) total revenue increased 12% in the second quarter to $174.3 million. While we acknowledge the risk and potential of Wingstop Inc. (NASDAQ:WING) 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 Wingstop Inc. (NASDAQ:WING) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Wingstop Inc. (NASDAQ:WING) and shared the list of best high growth consumer stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.