Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Value Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in undervalued companies with solid financial health and compelling business economics. US equities continued to advance in the fourth quarter of 2025, despite volatility. At the start of the quarter, a government shutdown unsettled investors and delayed key economic data, raising questions about the Federal Reserve’s easing timeline. However, as the quarter progressed, risk appetite increased, and clarity around monetary policy improved, leading the Fed to implement rate cuts and end quantitative tightening. This suggests a continued easing of financial conditions into 2026. While AI remained a key focus, markets diversified in November, with value and non-AI stocks leading. This could indicate a shift in market leadership moving forward. Mid-cap stocks lagged large caps in Q4, particularly on the growth side, as the Russell Midcap® Growth Index declined 3.7% while mid-cap value posted a modest gain and outperformed the growth index for the quarter and full year. In the quarter, the fund’s Investor Class fund ARTQX returned 1.53%, Advisor Class fund APDQX posted a return of 1.54%, and Institutional Class fund APHQX returned 1.63%, compared to a 1.42% return for the Russell Midcap Value Index. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks like CDW Corporation (NASDAQ:CDW). CDW Corporation (NASDAQ:CDW) is an information technology (IT) solutions company. On March 31, 2026, CDW Corporation (NASDAQ:CDW) closed at $121.02 per share. One-month return of CDW Corporation (NASDAQ:CDW) was -3.08%, and its shares lost 26.42% over the past 52 weeks. CDW Corporation (NASDAQ:CDW) has a market capitalization of $15.756 billion.
Artisan Mid Cap Value Fund stated the following regarding CDW Corporation (NASDAQ:CDW) in its fourth quarter 2025 investor letter:
“Portfolio returns in the technology and communication services sectors were hurt by Vontier, CDW Corporation (NASDAQ:CDW) and Pinterest. CDW is a value-added reseller (VAR) of information technology solutions that we added to the portfolio in April when IT resellers pulled back alongside the broader sector. While revenue continues to grow at a mid-single-digit rate, investors remain focused on the pace of operating leverage, and little has changed fundamentally since our initial purchase. Concerns about disintermediation—particularly as cloud computing expands—have long accompanied the VAR model and are not new. Similar worries emerged during the industry’s shift from physical to digital software delivery and later with the rise of software-as-a-service. Today, the perceived risk centers on cloud vendors selling directly to customers. Disintermediation risk is more pronounced in the enterprise market, where customers have the scale and expertise to manage vendor relationships internally. Small and mid-sized businesses (SMBs), by contrast, generally lack the resources to evaluate, integrate and support an increasingly complex universe of IT products and therefore continue to rely on VARs for selection, implementation and ongoing support. Vendors also generally have limited incentive to build out direct sales and service capabilities for SMBs. CDWbenefits from attractive business economics, with low capital intensity and strong free cash flow generation. While IT spending is cyclical, CDW has historically grown faster than overall IT spend as the channel has continued to gain share from direct sales over time.”
CDW Corporation (NASDAQ:CDW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge fund portfolios held CDW Corporation (NASDAQ:CDW) at the end of the fourth quarter, up from 48 in the previous quarter. In Q4 2025, CDW Corporation reported consolidates net sales (NASDAQ:CDW) of $5.5 billion, up 6% from Q4 2024. While we acknowledge the risk and potential of CDW Corporation (NASDAQ:CDW) 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 CDW Corporation (NASDAQ:CDW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CDW Corporation (NASDAQ:CDW) and shared a list of best information technology services stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
