Here’s Why Aris Water Solutions (ARIS) Declined in Q2

Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class APFDX returned 10.84%, Advisor Class APDDX posted a return of 10.83%, and Institutional Class APHDX returned 10.93%, compared to a 11.84% return for the MSCI All Country World Small Mid Index. Global markets experienced volatility in Q2, shifting from double-digit declines to gains. Following President Trump’s April 2 announcement of tariffs on US trading partners, equities fell sharply. However, on April 9, he suspended tariff increases, leading to a tentative agreement with Beijing in May. This announcement resulted in a strong rebound, allowing US equities to recover their April losses and rise heading into summer. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Global Discovery Fund highlighted stocks such as Aris Water Solutions, Inc. (NYSE:ARIS). Aris Water Solutions, Inc. (NYSE:ARIS) is an environmental infrastructure and solutions company. The one-month return of Aris Water Solutions, Inc. (NYSE:ARIS) was 1.89%, and its shares gained 58.96% of their value over the last 52 weeks. On September 05, 2025, Aris Water Solutions, Inc. (NYSE:ARIS) stock closed at $23.78 per share, with a market capitalization of $1.407 billion.

Artisan Global Discovery Fund stated the following regarding Aris Water Solutions, Inc. (NYSE:ARIS) in its second quarter 2025 investor letter:

“Among our top detractors were Aris Water Solutions, Inc. (NYSE:ARIS), Saia and Gerresheimer. Aris offers full-cycle water handling and recycling solutions in the Permian Basin with a focus on the Delaware Basin. Wastewater is a by-product of oil production that needs to be collected and safely disposed of, and our research indicates the water to-oil ratio in the Delaware Basin is also among the highest. Aris has built proprietary assets, including collection pipelines, water-handling facilities and disposal wells, in the region, with more pipeline and facilities permitted but not yet installed. Although the quarterly results and guidance announced in May were better than expected, shares were negatively impacted by lower oil prices and greater macroeconomic uncertainty. Aris’ revenues are partially tied to well completion and oil recovery activities, and those tend to move in line with oil prices and economic activity. We remain patient in a small Garden SM position.”

In another article, we covered Aris Water Solutions, Inc. (NYSE:ARIS) and shared Riverwater Micro Opportunities Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.