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 Humana Inc. (NYSE:HUM). Humana Inc. (NYSE:HUM) is an American insurance company that provides medical and specialty insurance products. On May 22, 2026, Humana Inc. (NYSE:HUM) closed at $307.95 per share. One-month return of Humana Inc. (NYSE:HUM) was 37.71%, and its shares gained 36.91% over the past 52 weeks. Humana Inc. (NYSE:HUM) has a market capitalization of $36.97 billion.
Artisan Value Fund stated the following regarding Humana Inc. (NYSE:HUM) in its Q1 2026 investor letter:
“Among the portfolio’s biggest decliners were Salesforce, Accenture, Humana Inc. (NYSE:HUM) and PayPal Holdings, each of which dropped by 20% or more during the quarter. Managed care stocks, including Humana, also declined during the quarter. The sector came under pressure after the Centers for Medicare & Medicaid Services (CMS) released a preliminary 2027 Medicare Advantage rate update that was significantly below expectations. The proposed increase of just 0.09% was essentially flat compared with investor expectations of 4% to 6%. While final rates are often revised higher, the announcement was a meaningful disappointment and adds uncertainty to Humana’s multiyear turnaround. More broadly, the managed care industry continues to face higher medical costs driven by elevated utilization. Humana is also dealing with lower quality ratings under the Medicare Stars program, which could reduce bonus payments over the next several years. Although the stock appears inexpensive following its recent decline, we chose to exit the position given the company’s heavy exposure to Medicare Advantage and the risk that policy and execution challenges could delay a recovery in margins and earnings.”
Humana Inc. (NYSE:HUM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 53 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of the fourth quarter, compared to 60 in the previous quarter. While we acknowledge the risk and potential of Humana Inc. (NYSE:HUM) 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 Humana Inc. (NYSE:HUM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Humana Inc. (NYSE:HUM) and shared Eagle Capital Management’s views on the company. 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.
