Artisan Partners, an investment management company, released its second-quarter 2026 investor letter for its “Artisan Small Cap Fund”. A copy of the letter can be downloaded here. The fund reported strong absolute returns and modestly outperformed the Russell 2000® Growth Index, which gained 25.7%. Global equities rebounded as resilient US growth, moderating inflation, strong earnings and continued AI investment outweighed delayed rate cuts, rising bond yields and geopolitical uncertainty. Investor Class: ARTSX, Advisor Class: APDSX, and Institutional Class: APHSX returned 26.02%, 26.05%, and 26.11%, respectively, in the second quarter, compared to a 25.71% return for the index. Market leadership favored loss-making, highly leveraged companies, creating a difficult environment for quality-focused active managers. Health care was the strongest relative contributor, while energy, materials, financials and real estate also helped. Technology, industrials and consumer discretionary detracted, partly because the fund did not own oversized index contributors. Software holdings also weakened despite strong fundamentals. The fund remains positive on small-cap opportunities, AI infrastructure and health care, but has reduced software exposure and is staying selective as valuations rise and competitive risks increase. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Artisan Small Cap Fund highlighted Lattice Semiconductor Corporation (NASDAQ:LSCC). Lattice Semiconductor Corporation (NASDAQ:LSCC) develops and sells semiconductor solutions including silicon-based and silicon-enabling, evaluation boards, and development hardware products. On July 23, 2026, Lattice Semiconductor Corporation (NASDAQ:LSCC) closed at $138.13 per share. One-month return of Lattice Semiconductor Corporation (NASDAQ:LSCC) was -4.88% and its shares gained 162.53% over the past 52 weeks. Lattice Semiconductor Corporation (NASDAQ:LSCC) has a market capitalization of $18.92 billion with a 52-week trading range between $46.43 – $157.01.
Artisan Small Cap Fund stated the following regarding Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q2 2026 investor letter:
“Lattice Semiconductor Corporation (NASDAQ:LSCC) is a fabless leader in low-power field-programmable gate arrays. Shares rose after the company reported better-than-expected results and issued stronger-than-expected revenue and profit guidance, marking an important step forward under the new management team. Demand improved across the server, communications and industrial end markets. Lattice also announced a $1 billion acquisition of AMI, a leader in platform firmware and data center infrastructure manageability, which should expand its data center capabilities and broaden its addressable market. We believe the acquisition will accelerate Lattice’s profit cycle. We added to this Crop position during the quarter.”(Click here to read the full text)
Lattice Semiconductor Corporation (NASDAQ:LSCC) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Lattice Semiconductor Corporation (NASDAQ:LSCC) at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of Lattice Semiconductor Corporation (NASDAQ:LSCC) 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 Lattice Semiconductor Corporation (NASDAQ:LSCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lattice Semiconductor Corporation (NASDAQ:LSCC) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s insights on the company. In addition, please check out our hedge fund investor letters Q2 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.
