Here’s Why Artisan Small Cap Fund Ended Its Investment Campaign in MYR Group (MYRG)

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Investor sentiment at the beginning of 2025 was positive. In 2024, US equities once again outperformed their global counterparts, and there was optimism that the new Republican administration would strengthen the idea of US exceptionalism. However, the first quarter did not meet those expectations. In the quarter, its Investor Class fund ARTSX returned -10.14%, Advisor Class fund APDSX posted a return of -10.10%, and Institutional Class fund APHSX returned -10.07%, compared to a return of -11.12% for the Russell 2000 Growth Index. Markets experienced weakness due to rising fiscal and geopolitical uncertainties during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as MYR Group Inc. (NASDAQ:MYRG). MYR Group Inc. (NASDAQ:MYRG) is an electrical construction services provider that operates through Transmission and Distribution, and Commercial and Industrial segments. The one-month return of MYR Group Inc. (NASDAQ:MYRG) was 3.58%, and its shares gained 3.15% of their value over the last 52 weeks. On June 2, 2025, MYR Group Inc. (NASDAQ:MYRG) stock closed at $158.37 per share with a market capitalization of $2.46 billion.

Artisan Small Cap Fund stated the following regarding MYR Group Inc. (NASDAQ:MYRG) in its Q1 2025 investor letter:

“Along with Dayforce, we ended our investment campaigns in MYR Group Inc. (NASDAQ:MYRG) and Dutch Bros during the quarter. Our thesis in MYR Group was driven by its role as an electrification enabler and its position to potentially benefit from both AI data center construction and the national need for more extensive and reliable electrical grids to support the energy transition. This thesis has been called into question due to the uncertain environment for renewable energy under the current administration and evidence that large language models may require less power.”

Why MYR Group Inc (MYRG) Is Plunging in 2025?

A construction crew using a crane to install a new electric substation.

MYR Group Inc. (NASDAQ:MYRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held MYR Group Inc. (NASDAQ:MYRG) at the end of the first quarter, which was 31 in the previous quarter. In Q1 2025, MYR Group Inc. (NASDAQ:MYRG) reported revenue of $834 million, up 2.2% from Q1 2024. While we acknowledge the potential of MYR Group Inc. (NASDAQ:MYRG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered MYR Group Inc. (NASDAQ:MYRG) and shared the list of construction stocks those are plunging in 2025. In addition, please check out our hedge fund investor letters Q1 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.