Artisan Partners, an investment management firm, issued its first-quarter 2026 investor letter for the “Artisan Mid Cap Value Fund”. A copy of this letter is available for download here. In Q1 2026, the portfolio underperformed the benchmark Russell Midcap Value Index as the market favored momentum-driven stocks over quality factors. Some holdings faced company-specific setbacks and negative sentiment. The Fund’s Investor Class: ARTQX returned -4.93%, Advisor Class: APDQX declined by -4.90%, and Institutional Class: APHQX fell by -4.97%, all trailing the Index’s 3.68% gain. The equity market in the quarter was mixed, with mid- and small-cap indices showing resilience despite lagging large-cap growth stocks. Volatility increased, initially fueled by interest in AI and private credit, but escalated after the outbreak of war in Iran, leading to rising oil prices. Sector performance varied, with energy leading the gains. The Fund continues to seek companies capable of value growth during market dislocations at attractive entry points. Also, review the Fund’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Artisan Mid Cap Value Fund highlighted IQVIA Holdings Inc. (NYSE:IQV). IQVIA Holdings Inc. (NYSE:IQV) is a US-based provider of clinical research services, commercial insights, and healthcare intelligence to the life sciences and healthcare industries. On July 7, 2026, IQVIA Holdings Inc. (NYSE:IQV) closed at $208.23 per share, reflecting a market capitalization of $34.75 billion. IQVIA Holdings Inc. (NYSE:IQV) posted a one-month return of 14.31%, and its shares gained 28.52% over the past 52 weeks.
Artisan Mid Cap Value Fund stated the following regarding IQVIA Holdings Inc. (NYSE:IQV) in its Q1 2026 investor letter:
“We initiated six new positions in Q1, representing an above-average rate of new purchase activity. Increased market volatility and greater dispersion in US equities during the quarter created more opportunities to add new names that meet our three margin-of-safety criteria: attractive business economics, sound financial condition and attractive valuation. Additionally, we sought to use recent volatility to upgrade the portfolio’s quality. Our three largest new buys by position size were Brown & Brown, Veralto andIQVIA Holdings Inc. (NYSE:IQV).
IQVIA combines a leading global contract research organization (CRO) franchise with a unique, mission-critical health care data asset, creating a diversified model with both cyclical and recurring revenue streams. We believe its Technology & Analytics Solutions segment—anchored by proprietary prescription and patient data—provides a durable competitive moat, deeply embedded in pharma workflows, while the CRO business benefits from scale, long-term outsourcing trends and complex trial demand. From a business quality perspective, IQVIA has generated substantial free cash flow and maintained strong competitive positioning, supported by high customer retention and mission-critical offerings. While leverage is elevated, the company’s cash flow profile and liquidity provide financial flexibility consistent with the team’s emphasis on balance sheet resilience and downside protection. Recent share price weakness—down materially year-to-date—has been driven by concerns around AI disruption and softness in CRO demand, including trial cancellations and pharma reprioritization. However, these pressures appear cyclical and, in the case of AI, likely overstated given IQVIA’s proprietary data assets and domain expertise, which are difficult to replicate and position the company as a potential beneficiary of AI adoption rather than a casualty. At 15X forward earnings and a high-single-digit free cash flow yield, the stock reflects low expectations despite resilient fundamentals. Consistent with the team’s process, this dislocation—driven by near-term uncertainty—could present an attractive entry point, particularly if the underlying business proves more resilient than current expectations imply.”
IQVIA Holdings Inc. (NYSE:IQV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 64 hedge fund portfolios held IQVIA Holdings Inc. (NYSE:IQV) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the risk and potential of IQVIA Holdings Inc. (NYSE:IQV) 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 IQVIA Holdings Inc. (NYSE:IQV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered IQVIA Holdings Inc. (NYSE:IQV) and shared Hardman Johnston Large Cap Equity Strategy’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.
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